Reward Boosting System

Reward Boosting System
When users join farming pools, they immediately start earning rewards. It will take 28 days to be eligible to claim 100% rewards. It is possible to immediately claim 70% of the rewards entitled to receive from the 1st day, but the rest will be redistributed to all participants in the underlying vault. Rewards entitled for claiming will be increasing each day on the vault proportionately up to the 28th day.
After 14 days, users will be eligible to claim 85% of the total rewards. (70% base + 15% referring to the first 14 days of participation in the vault, the remaining 15% will be achieved linearly until the 28th day, thus completing 100% rewards).
Users who claim earlier than 100% will have their remaining rewards left to be redistributed to the vault, let’s say user claim rewards with 75% from total, the remaining 25% rewards will be redistributed to every other participant on the underlying vault. This redistribution will increase future rewards for everyone who remains in the vault.
Once claimed, no matter in what ratio, the reward bar will be reset to 70% again boosting to 100% in 28 days. Users are able to deposit and withdraw from the vault without any effects on the rewards bar, only claim actions reset the bar.
100% Reward Boosting
The image below shows the status of rewards after 28 days of participation in the vault, note that the user can already claim 100% of rewards as shown in both corners of the rewards bar and that there is no longer a period to wait for claim 100 % as shown in “Days left 0” inside the rewards bar. User reached 100% of rewards on August 26th.
In this situation, the participant of this vault that is already maximized is also receiving TETU redistributed to this vault from other users who claimed the TETU before the 28 days necessary to receive all rewards.
Maturation Period
The image below shows the situation in which the user is receiving rewards still in the maturation period. xTETU rewards can be claimed at any time, however, the earlier xTETU is claimed during the maturation period, the lower the xTETU rewards ratio received compared to the end of the 28-day period in which the user has 100% rewards and the higher will be the amount of personal xTETU left to be redistributed to all pool participants.
70% rewards ratio is the minimum the user can receive, even if the user claims rewards and the bar is reset it will always start from 70%.
Dynamics
The Reward Boosting system creates a Game Theory dynamic in which users are rewarded for not claiming rewards for a short period, and even more encouraged to stay in the vault for a longer period as they will be receiving redistributed xTETU rewards from other users which claimed them before the 28-day period.
The Reward Boosting System even has the potential to regulate rewards distributed during a market panic, so that strong hands are rewarded with xTETU from leveraged users who are forced to leave the vault immediately to avoid a liquidation elsewhere, so the Reward Boosting System has the ability to act as an automatic xTETU rewards liquidator.
The Reward Boosting System even encourages farmers who are selling TETU to participate in farmed vaults long enough to make efficient sales, this can generate short farming cycles providing good opportunities to buy and accumulate TETU in concentrated market dips. You can read more about rewards in the FAQ.
The characteristics of the Reward Boosting System can be changed.
Resources
Reward Boosting System article on Medium.

LP incentives

Profit Sharing Pool xTETU

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Outline

Reward Boosting System

100% Reward Boosting

Maturation Period

Dynamics

Resources