Restaking Rewards Overview
Restaking rewards in the Tangle Network are designed to incentivize both operators and delegators through a structured system of rewards, which are distributed based on staked assets and specific reward configurations. Below is a detailed explanation of how the restaking rewards mechanism works, including setting APY and caps, distributing rewards, and managing assets within reward Vaults.
Key Concepts
- APY (Annual Percentage Yield): A percentage that determines the rewards distributed to stakers based on their contribution to the Vault.
- Cap: The maximum amount of staked assets that can earn rewards within a given Vault.
- Reward Vaults: Asset Vaults to which restaked tokens are assigned for reward distribution.
- Delegators: Users who delegate their tokens to operators, sharing in the rewards generated by the operators' activities.
- Operators: Validators who restake their tokens and provide services, earning rewards through their participation in the restaking protocol.
Whitelisting Blueprints for Rewards
The network allows developers to create blueprints for restaking services. These blueprints can be whitelisted for rewards, meaning services built using these blueprints can attract incentivized staking.
- Function:
whitelist_blueprint_for_rewards - Description: Whitelists a blueprint, allowing services using this blueprint to be eligible for reward distribution.
Distributing Rewards
Rewards are distributed to delegators based on the total amount staked in a reward Vault and the Vault's APY and cap configuration. The distribute_rewards function handles the distribution process, ensuring that all delegators receive their fair share of rewards based on the assets they have staked.
Reward Calculation
- Total Reward Calculation: The total reward is calculated by multiplying the APY by the total staked amount, capped at the Vault's limit.
- Individual Reward Calculation: Each delegator's reward is calculated as a percentage of the total reward based on the delegator’s stake in relation to the cap.
Example:
- If a Vault has a cap of 1000 tokens and an APY of 10%, the total reward distributed will be 100 tokens (10% of 1000).
- If a delegator staked 100 tokens, they will receive 10 tokens as a reward (10% of the total reward).