Compounding
Compound Streak: Rewarding Consistent Engagement in Suitzerland The Compound Streak feature, introduced in Suitzerland’s V5 update, is a game-changing mechanic designed to incentivize consistent engagement and compounding by (3,3) stakers. It boosts rebase APR with every consecutive compound, allowing users to unlock greater rewards the longer they maintain their streak
How It Works
Starting Point: All users begin with a compound streak of 0.
Actions That Reset the Streak: ○ Claiming rewards ○ Staking new tokens ○ Unstaking any $STZ These actions reset your streak to 0, encouraging consistent compounding instead of frequent claiming or staking adjustments.
Actions That Increase the Streak: ○ Each time you compound your rewards, your streak increases by 1, unlocking a higher APR.
Boosted APR: Earning More with Each Streak Level
Unlike a fixed APR, the Compound Streak system allows your APR to grow dynamically based on your streak. The formula for calculating boosted APR is straightforward:
Boosted_APR=Base_APR×(1+(Compound_Streak×0.05))
This linear model means that for every streak increment, your APR increases proportionally by 5% of the base APR.
Example Calculation
Let’s assume a base APR of 10% and a compound streak of 5:
Boosted_APR=0.10×(1+(5×0.05))=0.125 or 12.5%
With consistent compounding, users can steadily grow their APR, making the strategy highly rewarding over time.
Key Advantages ● Unlimited Potential: With no cap on the streak level, dedicated users can continue boosting their APR indefinitely. ● Maximized Rewards: The longer you sustain your streak, the greater your returns, turning compounding into a powerful strategy for long-term earnings. ● Engagement Incentives: This system encourages active participation, aligning users’ incentives with the protocol’s stability and growth.
The Compound Streak system exemplifies Suitzerland’s commitment to innovation, offering users an engaging way to maximize their rewards while strengthening the protocol.
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