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  • What is Yield Multiplying?
  • Example:
  • The Setup
  • Staking
  • Rewards
  • Elevations Comparison

Yield Multiplying By Example

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Last updated 3 years ago

The fabled battle takes place on the PLAINS. Let the Tortoise and Hare teach you about the cornerstone of Summit DeFi:

Yield Multiplying

What is Yield Multiplying?

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

"Risk the Milk, not the Cow"

The example below explains what Yield Multiplying will feel like in practice.

Example:

The Setup

The PLAINS has 2 hour rounds.

Staking

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).

Rewards

This means that the total "pot" for the round is 90 SUMMIT.

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

Elevations Comparison

For more information on Yield Multiplying and its intricacies, take a look at the full explanation below:

The PLAINS has two Totems: The Tortoiseand The Hare

2 users, both stake in the SUMMIT farm, and both have chosen the Hareas their Totem.

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.

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 ).

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 ( and )

Elevation Farms (Yield Multiplier)
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