Points Calculations
Sophon Farming is a way to earn rewards by staking your tokens in various pools. This guide explains how the system works and how to optimize your earnings.
Key Concepts
- Points are generated every block and shared across pools
- Your earnings are based on your staked tokens
- Boosting can increase your rewards
- Pool values determine point distribution
- Some pools may have a multiplier greater than 1
Points Distribution
Block Generation
Every block, a fixed number of points (10 SPs
) are created and distributed among active pools based on their relative value.
Example:
Imagine we have 3 active pools with a combined value of $1,000:
Gets 5 SPs per block (50% of 10 SPs)
Gets 3 SPs per block (30% of 10 SPs)
Gets 2 SPs per block (20% of 10 SPs)
- Total System Value: $1,000
- Total SPs Per Block: 10 SPs
- Emission Rate: 0.01 SP per USD equivalent staked
- Pool A Share: 0.005 SPs (50% of emissions)
Pool Value Calculation
The higher a pool’s relative value, the more points it receives from the global distribution.
Pool Multipliers
- Multipliers (usually 2x or 3x) increase the rewards for certain pools, making them more appealing
- The higher the multiplier, the more rewards you earn for the same amount staked
Example Distribution
Given:
- Pool A: $300 in staked tokens
- Pool B: $700 in staked tokens
- Total value: $1,000
Distribution:
- Pool A receives 30% (300 ÷ 1,000)
- Pool B receives 70% (700 ÷ 1,000)
Pool Mechanics
Pools update during:
- Token deposits and withdrawals
- Boosting
- Claiming Points
Reward Calculation
To calculate your earnings, use the following forumla:
Where:
- Your Stake: Amount of tokens you’ve deposited in the pool
- Pool Total Stake: Total amount of tokens deposited in the pool by all users
- Pool Share: Number of SPs allocated to the pool per block
Boosts
Boosts are multipliers that enhance your earning power by increasing your effective stake. When you apply a boost:
- You choose how many of your staked tokens to boost.
- Boosted tokens earn accelerated rewards, calculated using the boost multiplier (5x).
- These tokens are permanently committed to providing liquidity on Sophon Mainnet.
- Unboosted tokens can be withdrawn at any time.
How Boosts Work
Boosting is a strategic choice to maximize your Sophon Points (SPs) earnings by allocating part of your deposit to a higher reward rate. But remember, this comes with a commitment
Boosted assets are permanently locked to support liquidity on the Sophon network.
Example:
- You have staked 100 tokens in a pool.
- You apply a 5x boost to 50 of your tokens.
- Those 50 boosted tokens now count as 250 tokens (50 × 5).
- Your remaining 50 tokens stay unboosted, counting as 50.
- Your total effective stake is now 300 tokens (250 from boosted + 50 from unboosted).
- This means a 200% increase in point earnings.
For more on boosting, see Boosts.
Example Calculations
One Pool
- Points per Block: 10 SP
- Pool Multiplier: 1x
- Token Price: $2.00
- Your Stake: 100 tokens
After 10 blocks:
- Total Points Generated: 100 SP
Multiple Pools
Two Pools:
Values:
- Pool A: $300
- Pool B: $700
Per-Block Distribution:
- Pool A: 3 SP
- Pool B: 7 SP
10-Block Earnings
- Pool A User: 30 SP
- Pool B User: 70 SP
Multiple Pools with Multipliers
As aforementioned, some pools can have a multiplier greater than 1. Here’s how this works in practice:
Two Pools (Base Values):
- Pool A:
$400
×3x multiplier
= $1,200 effective value - Pool B:
$800
×1x multiplier
= $800 effective value
$1,200
+ $800
= $2,000 effective valuePer-Block Distribution (10 SP total):
- Pool A:
($1,200 / $2,000)
×10 SP
= 6 SP per block - Pool B:
($800 / $2,000)
×10 SP
= 4 SP per block
10-Block Earnings
- Pool A User: 6 SP × 10 blocks = 60 SP
- Pool B User: 4 SP × 10 blocks = 40 SP
Remember
- Points generate continuously per block
- Larger stakes yield more points
- Boosts increase earnings but lock tokens
- Unboosted tokens can be withdrawn
Happy farming! 🌾
For more information, please see the relevant contract on our GitHub.
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