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Staking
As mentioned in the Eclipse (ECLIP) Token section, in order to effectively interact with our platform - users must buy, stake, lock or farm $ECLIP tokens, which will be enabled through our staking vaults, lockup vaults and the ECLIP-SEI farm.
Staking Vaults in the context of the $ECLIP token provide a streamlined process for users to engage in staking so as to gain access to ecosystem features, enabling a simple stake-in and stake-out transfer directly from a user's wallet. The system requires a minimal 'time window' of 48 hours to elapse before unstaking tokens, ensuring a brief commitment to the staked position. Staking positions are grouped within a 7-day cycle, similar to CVX, running from Monday 12:00 am to Sunday 11:59 pm.
I.e. if a user stakes 100 $ECLIP on Monday and an additional 1000 ECLIP on Friday, their total stake becomes 1,100, with a stake timer of 4 days and a Cosmic Essence calculated as 1,100 x daily counter. This structure allows users to gain extra Cosmic Essence, with a maximum of 6.9 days' worth, assuming they stake a small amount followed by a larger amount within the same week. This approach to staking offers flexibility for users, encouraging participation in the ecosystem.
The lockup vaults are a type of staking vault which will allow users to lock their $ECLIP tokens for fixed periods of 3, 6, 9, or 12 months, providing additional benefits and enabling a faster increase in user position within the ecosystem. Once the tokens are locked in the vault, they cannot be withdrawn until the specified lockup time has elapsed.
Along with the locking mechanism, staking $ECLIP tokens in the lockup vault generate Cosmic Essence. If the tokens are locked on one of the lockup vaults, Cosmic Essence will be automatically generated upfront as if the $ECLIP tokens have been already staked for 3,6,9 or 12 months.
Please refer to the table below demonstrating the example of how each user's Cosmic Essence is progressively increased over the period of 12 months, during which $ECLIP tokens have been consequently staked.
Month | Tokens staked | Cosmic Essence |
1 | 1000 | 83.3 |
2 | 1000 | 166.7 |
3 | 1000 | 250.0 |
4 | 1000 | 333.3 |
5 | 1000 | 416.7 |
6 | 1000 | 500.0 |
7 | 1000 | 583.3 |
8 | 1000 | 666.7 |
9 | 1000 | 750.0 |
10 | 1000 | 833.3 |
11 | 1000 | 916.7 |
12 | 1000 | 1000.0 |
Please note that upon reaching max level (1:1 with the staked amount of tokens), Cosmic Essence cannot increase any further. For more details on rewards distribution, please refer to the Participation Rewards.
At any time users can stake additional funds which will increase their staking score (the average amount staked during the last 12 months). However, users who wish to unstake are forced to unstake 100% of their staked funds. Partial un-staking is not possible, with unstaking always reseting the user's current staking score to 0.
Similar to staking, users can always open another lockup position in another timeframe or increase the lockup time of existing one position (from 3 to 6 months, from 6 to 9 months or from 9 to 12 months).
Users who wish to unlock their funds must (similar to unstaking funds) unlock 100% of their locked funds. Furthermore, they must do so using the dedicated force unlock feature which applies a 50% slashing fee (also referred to as early exit fee) to the principal amount locked. This penalty decreases gradually in proportion to the number of days remaining to the lockup period's end. The early exit fee formula can be calculated using the following equation:
EEfis early exit feepis base penalty = 75%tis remaining time for the lockup period end in days
Slashed tokens are added to the Eclipse Fi incentivisation budget and eventually redistributed among other stakers.
Please refer to the following table summarising how users can interact with the staking and lockup vault and what are the results of these interactions
Operation | Possibility | Note |
Stake more | Possible | Positions are grouped weekly with the possibility for multi positions.
Staking score is calculated as an addition of all individual positions. |
Partial unstake | Impossible | Not possible due to potential abuse. Staking score cannot be subject to gradual decrease. Therefore it is reset to 0 upon unstaking, a feature which leaves no opertunity to partially unstake. |
Lock more | Possible | Possible by opening another lockup position |
Lock longer | Possible | Lockup time which already elapsed is accounted for the new lockup time (e.g. extension from 3 to 6 months on the last day of the lockup’s timeline will add 3 more months, instead of 6) |
Partial unlock | Impossible | Similar to the partial unstake, this feature is not possible due to potential abuse. |
Unstake 100% | Possible | Possible at any time, resets staking score to 0 |
Force unlock 100% | Possible | Possible at any time, at the cost of early exit fee and resets staking score to 0. |
Stake and lock at the same time independently | Possible | Cosmic essence from staked tokens and all locked position are summed to calculate user’s cosmic essence. |
Last modified 3mo ago