Triple Yield Mechanisms
Triple Yield Mechanisms
The ICX Protocol provides participants with three distinct yield streams:
ICX Reflection Yield
ICX Auction Yield
ETH Yield from DXN Multipliers (simultanously staked into DXN Protocol)
This triple-yield structure ensures that users benefit from multiple layers of reward generation, encouraging staking, auction participation, and active involvement in the ecosystem.
ICX Reflection Yield
Purpose: Reflection Yields reward participants who stake ultraLP tokens (ICX Miners) in the ICX Ultra Vault. This mechanism incentivizes long-term staking and ensures consistent rewards proportional to Reflection Power.
Key Features:
Daily Rewards: Distributed daily based on a participant’s share of the total Reflection Power.
Vesting Schedule:
5% Liquid: Immediately claimable.
95% Vested: Unlocks linearly over 45 days.
Reflection Power:
Boosted by staking additional ICX and using ICX multipliers.
Higher Reflection Power increases the share of daily Reflection Yields.
Benefits:
Encourages staking ultraLP tokens for sustained participation.
Provides predictable and compounding rewards for long-term holders.
ICX Auction Yield
Purpose: Auction Yields are earned through participation in ICX Daily Auctions, rewarding users who spend ICX competitively. This mechanism drives active engagement while creating a deflationary impact on the token supply.
Key Features:
Auction Power:
Determined by ICX spent and boosted by DXN multipliers.
Daily Rewards:
Calculated based on a participant’s share of the total Auction Power.
Burn and Liquidity Contributions:
55% of ICX spent in auctions is permanently burned.
22.5% is swapped for ETH and added to the ICX/ETH UniV2 pool.
22.5% is added as ICX liquidity to the same pool.
Benefits:
Promotes active participation and strategic bidding.
Enhances token scarcity and liquidity, reinforcing the price floor.
ETH Yield from DXN Multipliers
Purpose: Participants who lock DXN tokens to boost Auction Power also earn ETH rewards. This provides an additional yield stream, integrating the DXN ecosystem into ICX Protocol operations.
Key Features:
ETH Rewards Distribution:
75% to Participants: Paid directly to users who stake DXN.
25% to Protocol:
55% of ETH used to buy and burn ICX.
22.5% ETH used and added to ICX/ETH liquidity.
22.5% of ETH added as ICX liquidity to support the ETH price floor.
DXN Multiplier Lock Period:
DXN tokens are locked for a minimum of 2 weeks.
Weekly maintenance requires staking 10% additional DXN.
Benefits:
Encourages DXN staking for dual benefits: Auction Power and ETH rewards.
Supports ICX’s deflationary mechanics and liquidity growth.
Synergy Between Yield Streams
The Triple Yield Mechanisms work together to create a robust reward structure, ensuring active participation and deflationary growth:
Reflection Yield:
Provides a stable income for ultraLP stakers.
Increases liquid ICX for participation in auctions.
Auction Yield:
Rewards participants for bidding ICX while reducing the total supply.
Encourages strategic use of Reflection Yields and DXN multipliers.
ETH Yield:
Offers a secondary reward stream through DXN staking.
Reinforces liquidity and token scarcity, benefiting the entire ecosystem.
Example: Triple Yield Synergy in Action
Participant
ultraLP Reflection Yield
Auction Yield
ETH from DXN Staking
Participant 1
10,000 ICX
50,000 ICX
0.25 ETH
Participant 2
20,000 ICX
100,000 ICX
0.50 ETH
Participant 3
50,000 ICX
250,000 ICX
1.25 ETH
Benefits of Triple Yield Mechanisms
Diverse Rewards:
Participants benefit from ICX and ETH rewards simultaneously.
Strategic Depth:
Encourages participants to optimize staking, multipliers, and auction participation.
Sustainable Growth:
Combines deflationary mechanics with liquidity reinforcement, ensuring long-term ecosystem health.
The Triple Yield Mechanisms provide a comprehensive reward system, ensuring participants are consistently incentivized while contributing to ICX Protocol’s deflationary and liquidity-building goals.
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