Discovering Aurare : Staking rewards

Aurare NFT Marketplace
3 min readApr 16, 2022

Active and Passive Staking

The rewards for each day are calculated at the end of the previous period, then split between Active and Passive stakers before they’re distributed.

The main difference between Active and Passive stakers is that ARR in passive staking do NOT earn additional ARR while staked.

Active stakers are the majority of stakers, whose staked ARR tokens are fully unlocked.

Passive stakers are stakers whose ARR tokens are locked for trading but unlocked for staking: namely Team, Treasury, Ecosystem fund, Advisory and Strategic sale tokens.

At the start of each 24 hour period, a portion of the WETH fees collected from the previous 24 hours are sent to the Passive Staking address. The amount is calculated as:

(a/b)*c

Where

  • a = Total amount of ARRstaked passively at start of period
  • b = Total amount of ARR staked at start of period (passive + active)
  • c = Amount of WETH fees from previous 24 hours

The remaining WETH is then sent to the Active Staking Pool.

How is WETH fee sharing calculated for Active ARR stakers?

For each 24-hour period, the amount of WETH rewards to be distributed in each block to active stakers is calculated by:

Total WETH collected as fees in the prior 24H period / Number of blocks within that period

Each user’s amount of staked ARR at each block is then compared against the total amount of ARR staked at each block, with this being done at every block within the 24 hour period to find the total amount of WETH rewards received.

Example

  • Let’s assume that within 24 hours there are 6,500 blocks and that Aurare processes 10,000 WETH of non-private sale volume in the first 6,500 blocks after launch, collecting total fees of 200 WETH.
  • At block #6500, User A stakes 10,000 ARR in preparation to start earning WETH at block #6501.
  • At block #6501, the amount of passive tokens staked is 10% of the total amount of tokens staked, meaning 20 WETH is sent to the passive staking address.
  • The remaining 180 WETH is put into the active ARR staking pool, with 0.027692 WETH to be earned per block for 6,500 blocks (180 / 6,500).
  • The total amount of ARR staked from ALL users is 1,000,000 ARR.
  • This means that User A will be allocated: (10,000 / 1,000,000) * 0.027692 = 0.00027692 WETH at block #6501.
  • At block #6502, assuming User A’s stake does not change, but the total amount of ARR staked from all users increases to 1,500,000 ARR, then User A will be allocated: (10,000 / 1,000,000) * 0.027692 = 0.00018641 WETH at block #6502.
  • This calculation will then continue for another 6,498 blocks (since our example covers a 6,500 block period), with 0.027692 WETH as the amount to be earned per block.
  • The WETH fees generated from trades on the Aurare platform in the 6,500-block period between block #6501 and block #13000 will then be used as the rewards to be distributed linearly over the next period, which will be from block #13001 and #19500.

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