ICX Ultra Vault

ICX Ultra Vault: Central to Participation

The ICX Ultra Vault is the core staking mechanism of the ICX Protocol. It is designed to enable participants to unlock rewards and maximize their earning potential. By staking ultraLP tokens (ICX Miners) in the Ultra Vault, users gain access to Reflection and Auction Yields, the primary reward streams of the protocol.

Purpose of the ICX Ultra Vault

  1. Centralized Yield Mechanism:

    • The Ultra Vault acts as the central hub where all staking and reward mechanisms converge.

    • It facilitates the calculation and distribution of both ICX Reflection Yields and Auction Yields.

  2. Incentivizing Long-Term Engagement:

    • Participants must actively manage their staked ultraLP tokens to maximize returns.

    • Staking ultraLP tokens unlocks Base Reflection Power, which determines a user’s share of Reflection Yields.

  3. Maximizing Protocol Efficiency:

    • The Ultra Vault ensures that staked ultraLP tokens are locked into the system, promoting liquidity stability and long-term value growth.

Staking in the ICX Ultra Vault

ultraLP Tokens (ICX Miners):

  • ultraLP tokens are created during the Capped Liquidity Window (CLW).

  • Once minted, ultraLP tokens are automatically staked in the ICX Ultra Vault.

Base Reflection Power:

  • Staking ultraLP tokens activates Base Reflection Power, which is essential for earning ICX Reflection Yields.

  • Reflection Power is further amplified through ICX Multipliers.

Yield Streams:

  • Staking in the Ultra Vault grants access to:

    • ICX Reflection Yields: Earned daily and distributed based on Reflection Power.

    • ICX Auction Yields: Earned through participation in daily auctions.

Interaction with Multiplier Systems

Participants can enhance their staking rewards by utilizing the multiplier systems:

  1. ICX Multipliers:

    • Increase Reflection Power for higher daily Reflection Yields.

    • Require staking additional ICX, with 50% of the deposit burned.

    • Weekly maintenance is required to sustain multipliers.

  2. DXN Multipliers:

    • Boost Auction Power for greater shares of daily Auction Yields.

    • Require locking DXN tokens, without a burn mechanism.

    • Weekly maintenance ensures the multiplier remains active.

Ultra Vault Dynamics

  1. Flexibility:

    • ultraLP tokens can be withdrawn at any time, providing users with liquidity when needed.

    • However, withdrawing tokens forfeits access to Reflection and Auction Yields.

  2. Compounding Yields:

    • Participants can reinvest their Reflection Yields to increase Base Reflection Power.

    • Compounding yields amplify rewards over time and strengthen a user’s position in the ecosystem.

  3. Interaction with Deflationary Mechanics:

    • Staking and compounding in the Ultra Vault contribute to ICX’s deflationary design, as additional ICX deposits trigger burns when increasing multipliers.

ICX Reflection and Auction Yields

The Ultra Vault integrates seamlessly with the Reflection and Auction Yield mechanisms:

  • Reflection Yields:

    • Distributed daily based on a participant’s Reflection Power relative to the total.

    • Vest over 45 days to ensure gradual release.

  • Auction Yields:

    • Earned through daily auctions, with distribution based on Auction Power.

    • Vest over 360 days to promote sustained engagement.

Benefits of the Ultra Vault

  1. Optimized Rewards:

    • By staking ultraLP tokens, participants unlock multiple yield streams, enhancing their earning potential.

  2. Liquidity Stability:

    • Staked ultraLP tokens reinforce the protocol’s liquidity base, benefiting all participants.

  3. Scalability:

    • The Ultra Vault provides a dynamic environment where participants can grow their rewards by strategically utilizing ICX and DXN multipliers.

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