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:
Pool A: $500 value (50% of total)
Gets 5 SPs per block (50% of 10 SPs)
Pool B: $300 value (30% of total)
Gets 3 SPs per block (30% of 10 SPs)
Pool C: $200 value (20% of total)
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
Pool Value = (Total Tokens Staked × Token Price × Pool Multiplier)
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
For the time being, all pools on Sophon Mainnet only have a 1x multiplier.
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:
SPs per block = (Your Stake / Pool Total Stake) × Pool Share
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
Points accumulate continuously while staking.
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
For the time being, all pools on Sophon Mainnet only have a 1x multiplier.
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
Total System Value: $1,200
+ $800
= $2,000 effective value
Per-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.