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BAY Rewards provide benefits for long-term users of the protocol, these rewards come in the form of Escrowed BAY and Multiplier Points.
There are two options for rewards on Earn: "Compound" and "Claim".
Compounding will stake your pending Multiplier Points and Escrowed BAY rewards, this will increase the number of rewards you receive.
Claiming will transfer any pending Escrowed BAY rewards and AVAX rewards to your wallet.
If you compound or stake your Escrowed BAY tokens, you can unstake them for vesting at any time later on.
Escrowed BAY (esBAY) can be used in two ways:
- 1.Staked for rewards similar to regular BAY tokens
- 2.Vested to become actual BAY tokens over 2 years
Each staked Escrowed BAY token will earn the same amount of Escrowed BAY and AVAX rewards as a regular BAY token.
Note that Escrowed BAY (esBAY) is not meant to be transferrable unless you are doing a complete account transfer. The amount of BAY or BLP required to vest esBAY is unique per account and capped to the rewards received by that account. Please do not buy esBAY off the market or OTC as you will not be able to vest them.
Escrowed BAY (esBAY) tokens can be converted into BAY tokens through vesting, this can be accessed on the Earn page.
When vesting is initiated, the average amount of BAY or BLP tokens that were used to earn the esBAY rewards will be reserved.
For example, if you staked 1000 BAY and earned 100 esBAY tokens, then to vest 100 esBAY tokens, 1000 BAY tokens will be reserved. To vest 50 esBAY, 500 BAY tokens will be reserved. Note that this is an example and the actual ratio depends on the average staked amount and rewards earned for your account.
esBAY tokens that have been unstaked and deposited for vesting will not earn rewards. Staked tokens that are reserved for vesting will continue to earn rewards.
After initiating vesting, the esBAY tokens will be converted into BAY every second and will fully vest over 730 days. esBAY tokens that have been converted into BAY are claimable at any time.
If a user sells BAY or BLP tokens and would like to vest their esBAY rewards, later on, they would need to re-buy the BAY or BLP tokens. BAY, esBAY, and Multiplier Points can be used interchangeably for the required reserve amount.
Depositing into the vesting vault while existing vesting is ongoing is supported.
Tokens that are reserved for vesting cannot be unstaked or sold. To unreserve, the tokens, use the "Withdraw" button on the Earn page. Partial withdrawals are not supported so withdrawing will withdraw and unreserve all tokens as well as pause vesting. All esBAY tokens that had been vested into BAY will remain as BAY tokens.
Multiplier Points reward long-term holders without inflation.
When you stake BAY, you receive Multiplier Points every second at a fixed rate of 100% APR. 1000 BAY staked for one year would earn 1000 Multiplier Points.
Multiplier points can be staked for fee rewards by pressing the "Compound" button on the Earn page, each multiplier point will boost AVAX APRs at the same rate as a regular BAY token.
When BAY or Escrowed BAY tokens are unstaked, the proportional amount of Multiplier Points is burnt. For example, if 1000 BAY is staked and 500 Multiplier Points have been earned so far, then unstaking 300 BAY would burn 150 (300 / 1000 * 500) Multiplier Points. The burn will apply to the total amount of Multiplier Points, including both the staked and unstaked.
To transfer staked tokens without burning Multiplier Points, use the Transfer button on the Earn page.
The "Boost Percentage" shown on the Earn page shows your individual boost amount from Multiplier Points. For example, if the AVAX APR is 10% and you have $10,000 worth of BAY and esBAY, then your rewards would be $1000 annualized if you additionally have several Multiplier Points equivalent to 20% of your total amount of BAY and Escrowed BAY, your "Boost Percentage" would display as 20%, and you would get an extra $200 of AVAX rewards annualized. The “Boost Percentage” is calculated from the ratio of Multiplier Points to your total amount of staked BAY:
Boost Percentage = 100 * (Staked Multiplier Points) / (Staked BAY + Staked esBAY)
100 * (4.5656) / (7.54 + 2.00) = 47.85%
A summary of rewards and mechanics:
- BAY: earns AVAX, esBAY, and Multiplier Points when staked
- esBAY: earns AVAX, esBAY, and Multiplier Points when staked
- Multiplier Points: boost AVAX APRs when staked
- BLP: earns AVAX, esBAY, automatically staked on mint