When the protocol is in the expansion (TWAP > 1 CRO), 20% of newly minted ESC, if not spent on protocol debt, is awarded to people who have staked - or “bonded” - their ESC in the DAO.
- Epoch duration: 6 hours
- Bonding/unbonding (bonding events) ESC into DAO will lock staged ESC for 28 epochs (7 days)
- Once bonded, you will begin receiving ESC rewards after each epoch while the protocol is in expansion, and these rewards will auto-compound into your bonded balance
- The lock status is shown under “Status” in the ESC platform. When locked, you’ll be shown after which epoch it becomes unlocked
- Technically, when the TWAP is over 1 CRO, the DAO earns rewards only after all coupons have been made redeemable
- When ESC is in contraction, no rewards are earned
When the ESC protocol is in the expansion (TWAP > 1 CRO), approximately 20% of new emissions are awarded to liquidity providers, or “LPs”. Liquidity providers are people who deposit ESC/WCRO liquidity pools, to facilitate trading.
- LP bonded will be locked for 8 epochs (2 days)
- When you bond/unbond LP, there is an 8-epoch delay before you can withdraw them or deposit additional LP. Any bonding interaction will restart the lockup timer
- Your lock status is displayed under “Pool Status”. If locked, you’ll be shown after which epoch your pool becomes unlocked
- When ESC is in contraction, no rewards are earned, although you will continue to earn trading fees
- Unlike the DAO, LP rewards are in the form of claimable ESC tokens. These rewards will appear as your “Rewarded” balance on the Liquidity screen
When ESC is in contraction (TWAP < 1 CRO), the protocol sells coupons at a premium. This means for each 1 ESC worth of coupons, you’ll pay something less than 1 ESC, and later be able to redeem them for 1 ESC, when the protocol is again in expansion. For example, TWAP < 1 CRO at epoch 100, TWAP > 1 CRO continuosly in the next 2 epochs so you can redeem coupons at epoch 102.
Purchasing coupons can be very profitable. For example, if you bought 1 ESC of coupons for 0.75 ESC, and redeemed them for 1 ESC in a week, that’s an annualized return of roughly 1,400%.
However, purchased coupons expire after 1460 epochs, or approximately 365 days. This means that if ESC doesn’t enter expansion during that time, your coupons expire worthlessly.
Stake your LP on the FairRoom to earn ESC.
When the ESC protocol is in the expansion (TWAP > 1 CRO), approximately 10% of new emissions are awarded to liquidity providers, or “LPs”. Liquidity providers are people who deposit ESC/DARK liquidity pools, to facilitate trading.
- ESC holders can decide to stake and lock DarkNess LP – ESC/DARK for at least 56 epochs (14 days) to earn ESC
- Once locked, users cannot withdraw their ESC/DARK LP – it is not possible to pay a penalty to withdraw locked ESC-DARK LP early
- Users can claim rewards anytime but the timer will be reset to 56 epochs (14 days)
- You can not claim rewards during contraction or upcoming contraction phase
- Whenever users unstake (full or partial) ESC/DARK LP from DiamondRoom, they will have to sacrifice all their pending ESC rewards (burn)