Yield Multiplying By Example
The fabled battle takes place on the PLAINS. Let the Tortoise and Hare teach you about the cornerstone of Summit DeFi:
When users stake in an Elevation Farm (The PLAINS, The MESA, and The SUMMIT), they generate yield (in SUMMIT token). The amount of SUMMIT generated is based on the emissions / APR of the farm, just like a traditional yield farm.
Unlike a traditional yield farm, this SUMMIT is not immediately available for harvesting. Instead, over the duration of a round, it accumulates and is contributed to a Totem (think of this like a Team). At the end of the round, a single totem is randomly picked to be the winner, and the user's who have selected that winning totem are granted a Yield Multiplier against the yield that they contributed during the round.
When the Totems compete, they only compete with the Yield Generated during a round. The amount you stake is always safe, and always yours. As the saying goes
The example below explains what Yield Multiplying will feel like in practice.
The PLAINS has two Totems: The Tortoise
and The Hare
The PLAINS has 2 hour rounds.
2 users, both stake in the SUMMIT farm, and both have chosen the Hare
as their Totem.
User 1 stakes 100 SUMMIT, and leaves it in for the full 2 hour duration. User 1's 100 SUMMIT generates 10 SUMMIT yield over the 2 hour round.
User 2 stakes 1000 SUMMIT, but only leaves it in for 30 minutes. User 2's 1000 SUMMIT generates 30 SUMMIT yield over the 30 minutes the user was staked in the farm (this is a higher yield, even though User 2 staked for less time, because they staked more SUMMIT, just like a traditional Yield farm).
Between these 2 users, the Hare
would be holding a total of 40 SUMMIT yield when the round ends. Lets also say at the end of the round, the Tortoise
has generated 50 SUMMIT yield from users 3, 4, and 5 who have been earning and contributing their own yield over the duration of the round.
This means that the total "pot" for the round is 90 SUMMIT.
If the Hare
is randomly selected as the winning Totem, then the "yield multiplier" for all the users of the
is calculated to be 2.25X(90 SUMMIT total / 40 SUMMIT of
This multiplier is applied to each SUMMIT yield that is generated by users 1 and 2, so the final rewards for each users is as follows:
User 1: 10 SUMMIT yield accumulated during the round * 2.25X multiplier = 22.5 SUMMIT rewards locked for 30 days
User 2: 30 SUMMIT yield accumulated during the round * 2.25X multiplier = 67.5 SUMMIT rewards locked for 30 days
Users 3/4/5: The
didn't win the round, so they didn't win any SUMMIT rewards
As you can see, the amount of rewards each User earns at the end of the round is based on how much yield each user generates and contributes to their Totem, as well as the comparative yield between the two Totems of the PLAINS (
For more information on Yield Multiplying and its intricacies, take a look at the full explanation below: