Staking and Yield Farming
The Decentralised Finance world is an evolution within the blockchain and cryptocurrency industry as it brings a whole new opportunity for earning multiple passive income streams. The incentives, rewards, and safety DeFi provides to the users of the platform is pushing smart contract interaction to higher levels. Acta Finance, inclusive of ActaFi Swap, is bringing DeFi incentives in a way no other project has ever brought before.
At Acta Finance, we don’t believe in lockups when it comes to staking. Users need to be able to withdraw their staked amount, or claim their rewards, without any delay. Any project listed on ActaFi Swap can apply to run a staking program with Acta Finance.
The ACTA Token has a progressive reward model so users are motivated to engage long term. The longer a user stakes, the higher rewards APR users will get.
The staking rewards are allocated every second and are free to be claimed or compounded. As the user benefits from staking, we also want to have the incentives available as long as possible, if not forever. Therefore, fees are in place which refill the incentives pool, feed the DAO Program and Referral Program. As a result, it provides the opportunity for everybody to benefit and get rewarded for their activity within the ActaFi Ecosystem.
The Staking fees are distributed quarterly as following:
- 20% refill the incentives pool
- up to 20% Acta Finance DAO program*
- 30% Development Fund
- up to 30% to affiliate network*
*The allocation of the affiliates', or DAO, levels that are not filled gets reallocated automatically to the incentives pool.
Liquidity mining, otherwise known as yield farming, represents a new way of utilising cryptocurrencies by providing liquidity to decentralised exchanges. Since the primary goal of an exchange, or swap protocol, is to be liquid, DEXes seek to reward users willing to bring liquidity (capital) to their platform.
By providing liquidity to the liquidity pools on ActaFi Swap, participants earn liquidity points (LP). Those liquidity points determine the earnable stake of the fees generated from transactions in the liquidity pool. While the token swapper pays the protocol fee to trade on ActaFi Swap, the liquidity provider earns crypto for providing liquidity that the first user will need. In essence, the larger the LP stake is, the larger share of trading fees can be earned (e.g. if you own 10% of the liquidity pool, you receive 10% of the swap fee).
To incentivize users to become liquidity providers, Acta Finance sets up farming pools, also known as staking Liquidity Points, for trading pairs on ActaFi Swap. With farming, users deposit their Liquidity Points into the farming smart contract and therefore get a fair share from a fixed rewards pool. During the time the investor’s LPs are in the farming smart contract, the user still receives an appropriate share of the swap fees, but also rewards coming from the farming contract.
Projects that perform fundraising on the ActaFi Launchpad are obligated to set up a farming pool on Acta Finance, which offers the community an incentive for providing liquidity on ActaFi Swap.
ACTA Tokens get used for refilling the incentives pool address directly. In the case of non-ACTA Token pair farming pools, both assets of the fee get allocated to community incentives as a reward.