💰Rewards
Nether.Fi rewards provide benefits for long term users of the protocol, these rewards come in the form of Escrowed NFI and Multiplier Points.
Compounding vs Claiming
There are two options for rewards on https://nether.fi/#/earn: "Compound" and "Claim".
Compounding will stake your pending Multiplier Points and Escrowed NFI rewards, this will increase the amount of rewards you receive.
Claiming will transfer any pending Escrowed NFI rewards and ETH rewards to your wallet.
If you compound or stake your Escrowed NFI tokens, you can unstake them for vesting at anytime later on.
Escrowed NFI
Escrowed NFI (esNFI) can be earned through staking NFI or NLP (automatic). It can be used in two ways:
Staked for rewards similar to regular NFI tokens
Vested to become actual NFI tokens over a period of one year
Each staked Escrowed NFI token will earn the same amount of Escrowed NFI and ETH rewards as a regular NFI token.
Note that Escrowed NFI (esNFI) is not meant to be transferrable. The amount of NFI or NLP required to vest esNFI is unique per account and capped to the rewards received by that account. Please do not buy esNFI off the market or OTC as you will not be able to vest them.
Vesting
Escrowed NFI (esNFI) tokens can be converted into NFI tokens through vesting, this can be accessed on the Earn page.
When vesting is initiated, the average amount of NFI or NLP tokens that was used to earn the esNFI rewards will be reserved.
For example, if you staked 1000 NFI and earned 100 esNFI tokens, then to vest 100 esNFI tokens, 1000 NFI tokens will be reserved. To vest 50 esNFI, 500 NFI 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.
esNFI 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 esNFI tokens will be converted into NFI every second and will fully vest over 365 days. esNFI tokens that have been converted into NFI are claimable at anytime.
If a user sells NFI or NLP tokens and would like to vest their esNFI rewards later on, they would need to re-buy the NFI or NLP tokens. NFI, esNFI 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 esNFI tokens that had been vested into NFI will remain as NFI tokens.
Multiplier Points (MP)
Multiplier Points reward long term holders without inflation.
When you stake NFI, you receive MPs every second at a fixed rate of 100% APR. 1000 NFI staked for one year would earn 1000 MPs.
MPs can be staked for fee rewards by pressing the "Compound" button on the Earn page, each MP will boost ETH APR at the same rate as a regular NFI token.
When NFI or Escrowed NFI tokens are unstaked, the proportional amount of MPs are burnt. For example, if 1000 NFI is staked and 500 MPs have been earned so far, then unstaking 300 NFI would burn 150 (300 / 1000 * 500) MPs. The burn will apply to the total amount of MPs which includes both staked and unstaked MPs.
The "Boost Percentage" shown on the Earn (URL) page shows your individual boost amount from MPs. For example, if the ETH APR is 10% and you have $10,000 worth of NFI and esNFI, then your rewards would be $1000 annualized, if you additionally have an amount of MPs equivalent to 20% of your total amount of NFI and Escrowed NFI, your "Boost Percentage" would display as 20%, and you would get an extra $200 of ETH rewards annualized. The “Boost Percentage” is calculated from the ratio of MPs to your total amount of staked NFI:
Boost Percentage = 100 * (Staked Multiplier Points) / (Staked NFI + Staked esNFI)
Distribution Rate
Escrowed NFI will be distributed to staked NFI and NLP holders according to this schedule.
Summary
A summary of reward mechanics:
NFI: earns ETH, esNFI and MPs when staked
esNFI: earns ETH, esNFI and MPs when staked
MP: boost ETH APR when staked
NLP: earns ETH, esNFI, autimatically staked on mint
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