We are excited to announce that staking pools have been live since yesterday! In this post, we will explain how the pools function and how the tokenomics of DRC are affected by this.
There are two new pools: Staking DRC for ETH and staking DRC for DRC. The idea is that they both utilize two main mechanics of the MasterVampire contract and DRC token life cycle.
DRC -> ETH
DRC -> ETH utilizes buyback mechanics. Our victim pools earn tokens from their underlying protocols, such as UniSwap, SushiSwap, and Pickle. These yields are gathered through our ‘Drain’ function, where the underlying tokens earned (UNI, SUSHI, PICKLE) are sold for WETH.
Under our new tokenomics, 50% of the WETH goes to buying and burning DRC. 45% of the WETH goes to provide liquidity for the DRC-ETH, which is locked permanently. The remaining 5% goes to fund the pool, which is how DRC stakers in this pool earn yields in ETH.
DRC -> DRC
DRC -> DRC utilizes mint and rewards distribution. Stakers of this pool earn 4% of the total DRC mint (50% from mint to dev address). The remaining 4% of minted DRC goes to our developer fund.
Keep in mind DRC is minted at an inflationary rate until the circulating supply reaches around 10M. Once that number is reached, the community will have to decide if the supply should be capped or increased.
The Dracula Horde Pool (DRC -> ETH) is just a regular staking pool: When you stake there, you earn rewards in ETH over time. The pool is currently being funded in a non-linear manner due to the ‘Drain’ function, (approximately once every 12 hours), but the distribution is linear and constant due to the contract logic. Because of this, you may see some fluctuations in the amount of ETH earned.
DRC -> DRC pool is a bit different. You stake your DRC and receive a BLOOD — LP token. This pool is funded with DRC in a non-linear manner, and since you own a share of the pool (represented by the BLOOD token), your total amount of owned DRC will increase in non-linear manner as well. You also cannot ‘harvest’ — only stacking and unstaking. You ‘harvest’ your shares of DRC by unstaking from the pool. You also receive voting power with BLOOD, which will be implemented soon.
Keep in mind that 1% of your staked DRC is burned when you unstake. This mechanism is in place to prevent repetitive entry and exits to the pools and provides a layer of stability for the DRC token.