DXN Staking Vault

Purpose and Benefits of the DXN Staking Vault

The DXN Staking Vault plays a critical role in the ICX Protocol by enabling participants to stake DXN tokens to enhance their Auction Power while earning ETH rewards. This mechanism integrates seamlessly with ICX's deflationary mechanics, offering a compelling incentive for users to lock DXN tokens while supporting the protocol's liquidity and burn functions.

  1. Boosting Auction Power:

    • Participants who stake DXN tokens activate DXN multipliers, which amplify their Auction Power in ICX Daily Auctions. This increases their share of ICX Auction Yields.

  2. Earning ETH Rewards:

    • Staked DXN tokens are restaked into the DXN Protocol, generating ETH rewards for participants.

  3. Deflationary and Liquidity Enhancements:

    • A portion of ETH rewards is reinvested into the ICX Protocol, supporting liquidity and contributing to token burns.

Mechanics of the DXN Staking Vault

  1. Activating DXN Multipliers:

    • Participants lock DXN tokens in the DXN Staking Vault for a fixed period of 2 weeks.

    • Locking DXN tokens boosts Auction Power through multipliers ranging from 2x to 10x, depending on the amount of DXN staked.

    • Early unlocking before the lock period ends incurs a penalty, with the remaining DXN permanently locked in the DXN Protocol.

  2. Weekly Maintenance:

    • To sustain active multipliers, participants must stake an additional 10% of their principal DXN amount weekly.

    • Failure to meet this requirement results in a 2x reduction in the multiplier.

  3. ETH Rewards:

    • DXN tokens staked in the DXN Staking Vault are automatically restaked into the DXN Protocol, generating daily ETH rewards.

    • Reward Allocation:

      • 75% ETH: Distributed directly to participants.

      • 25% ETH: Reinvested into the ICX Protocol to support liquidity and burns.

        • 55% of this ETH: Used to buy and burn ICX, reducing circulating supply.

        • 22.5% of this ETH: Swapped for ETH liquidity and added to the ICX/ETH UniV2 liquidity pool.

        • 22.5% of this ETH: Added as ICX liquidity to the ICX/ETH UniV2 liquidity pool.

DXN Multiplier Tiers

Tier

Multiplier

DXN Required

Lock Period

2x

2x

250 DXN

2 Weeks

4x

4x

500 DXN

2 Weeks

6x

6x

750 DXN

2 Weeks

8x

8x

1,000 DXN

2 Weeks

10x

10x

1,250 DXN

2 Weeks

Penalty for Early Unlocks

If participants unlock their DXN tokens before the 2-week lock period ends:

  • Remaining DXN tokens are permanently staked into the DXN Protocol, removing them from circulation.

  • Participants lose their Auction Power boost associated with the locked DXN.

Impact of the DXN Staking Vault

  1. Increased Auction Competitiveness:

    • By locking DXN tokens and maintaining multipliers, participants can significantly enhance their Auction Power, increasing their share of ICX Auction Yields.

  2. ETH Yield Generation:

    • The vault provides a continuous stream of ETH rewards, adding a layer of profitability for active participants.

  3. Deflationary Pressure and Liquidity Growth:

    • The reinvestment of ETH into liquidity pools and ICX token burns strengthens the protocol's ecosystem, reduces token supply, and ensures price stability.

PreviousTriple Yield Mechanisms

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