Staking Boosts

This page explains about staking boosts and how users.

Initially inspired by the staking boosts implemented on Curve finance, the MCAI protocol also implements its own version of a staking boost, incentivizing liquidity providers who are participating within the ecosystem to also become MCAI stakers.

Every staking pool contract in the protocol implements a staking boost mechanism that gives liquidity providers who stake MCAI, a boost of upto 5x depending on how much MCAI has been staked.

Staking boosts not just apply to MCAI emissions but also all revenue eanred from the protocol as well.

Staking boosts go all the way up to 5x and apply to all incentive contracts! The more MCAI a user stakes, the larger the boost that they get.

How is the Boost Calculated?

Staking boost goes all the way up to 5x depending on the following variables:

1. How much total voting power does the pool have? The more users who have a voting power and are staking in a pool, the more competitive boosts become.

2. How much voting power does a user have? Depending on the percentage of the participating voting power a user has in a pool, the boost gets calculated. If a user has staked more tokens then he/she is entitled a larger share of the boosts.

The formula for the boosts is then calculated as follows considering the following variables. First we understand how much percentage of the voting power a user has in the pool.

$$votingShare(x, pool) = \dfrac{votingPower(x)}{totalVotingInPower(pool)}$$

If a pool has no voting power (which means that no one participating in the pool has staked any MCAI), then everyone gets the same level of boost.

Voting Power of User	Voting Power in the Pool	Effective Voting Share
0 veMCAI	0 veMCAI	100%
5,000 veMCAI	100,000 veMCAI	5%
5,000 veMCAI	5,000 veMCAI	100%

Once we have the votingShare of a user in a pool, we then roughly give a boost based on how much supply of the pool the user has.

$$supplyShare(x, pool) = \dfrac{balanceOf(x)}{totalSupply(pool)}$$

The final boost is calculated as the following.

$$todo$$

The following table gives a rough idea of how staking boosts are calculated depending on the variables mentioned above.

Voting Share	% of Pool	Effective Boost
0%	1%	1x
50%	5%	2x
100%	1%	5x
50%	1%	5x

Source Code

The following source code is taken from the MultiStakingRewardsERC4626 contract, which is used by all the staking contracts within the protocol. Boosts are used in reward calculations only and do not affect user deposits.

Boosts are updated every time a user either stake, withdraws or claims rewards from the contracts.

function _calculateBoostedBalance(address account) internal view returns (uint256 boostedBalance_) {
  // how much tokens a user has staked
  uint256 balance = balanceOf(account);
  
  // how much total tokens have been staked
  uint256 totalSupply = totalSupply();

  // reduce the balance by 1/5th; anyone that has not staked any tokens
  // will always have their reward balances at 1/5th the original value
  boostedBalance_ = balance / 5;
  
  // modify the balance depending on how much share of the voting power the user has
  if (_totalVotingPower > 0) {
    boostedBalance_ += totalSupply * _votingPower[account] / _totalVotingPower * 4 / 5;
  }

  // cap the new balance to the original balance effectively 
  // giving a 5x if theuser has enough voting power
  boostedBalance_ = Math.min(balance, boostedBalance_);
}