Tidal Finance introduces School of Fish Staking program
In their pre-mainnet article, they mentioned the three phases they have prepared for mainnet launch. Tidal Finance School of Fish represents their Phase II and specifically references $TIDAL staking. In schools of fish, there is the concept of shoaling which is the social reasons fish stay together and schooling which is directional movement together.
Tidal’s main role in the DeFi ecosystem is to provide support in risk management across hacks and smart contract bugs. The $TIDAL Staking process serves as a representation of what the ecosystem is doing: In a safe ecosystem, its school of fish ($TIDAL Staking Pool) flourishes. In an environment where security and safety is being tested, the school of fish (Staking Pool) devotes itself to support the survival of the ecosystem.
Tidal Finance is providing a total of 10,000,000 $TIDAL tokens every month to support Shoaling and Schooling of the $TIDAL Tokens with the ecosystem’s greatest supporters. This incentive will be set at launch to reward the staking pool (reward will be distributed per block). The reward amount is designed to bootstrap 400 million $TIDAL ( ~20% of the total circulating supply) in the staking pool, providing 30% APR in Tidal’s “School of Fish”.
Some points to note:
Risk of Staking
Please note that your staking is subject to the financial risk of losing shall a claim be approved.
Potential loss incurred during a payout.
After the governing risk team clears and validates a hack has happened, the payout process begins. Staking pool comes into play at this stage to provide collateral to the reserve provider(s) in question. For mainnet launch, staking collateral provided is $TIDAL tokens valued at lessor of $100k USD or 10% of the total Tidal claimable amount (tidal token valuation date of the day before the hack).
Payout function of the staking pool is created to support tidal platforms growth by mitigating initial reserve providers’ loss. It is important for tidal’s platform to bootstrap USDC reserves, especially at the beginning.
For other risks please refer to the risk section on gitbook.
Unstake
Users can unstake their $TIDAL tokens at any time. Please note that the unstaking process is subject to a 14-day lock-up period. During the 14-day lock-up period, stakers are still entitled to receive their staking reward for their staked Tidal tokens until the unstaking becomes effective, as well as taking the risk of getting slashed under a valid claim.
Staking Reward Parameter Setting
The staking process is based on the following formula:
Staking APR = RPB X BPY / TTS
Where
– RPB = (Tidal tokens) Reward Per Block
– BPY = Block Per Year
– TTS = Total Tidal Staked
As seen in the code of staking contract:
Please note that the APR formula given above represents the current APR and it does not involve any interest-compounding mechanism. The reward amount (APR) can be adjusted by calling a function and tuning the RewardPerBlock parameter in the smart contract. Depending on the staking amount and USDC reserve amount, reward amount shall be adjusted to best support the ecosystem growth.
About Tidal Finance
Tidal Finance is a high-yield insurance platform that allows users to buy and sell insurance for their assets and smart contracts across multiple chains.
📰 INFO
https://medium.com/tidal-finance/tidals-school-of-fish-tidal-staking-program-618c55403795
