Calculating APR
Understanding how the Annual Percentage Rate (APR) is calculated for staked meme tokens on Memestaking is crucial for users to maximize their rewards. This section provides a detailed explanation of the APR calculation mechanism, the factors influencing APR, and the multiplier effect for qualifying tokens.
APR Calculation Mechanism
The APR on Memestaking is calculated based on the amount of $MES tokens distributed as rewards to stakers over a year. The formula for calculating the APR is:
Total Annual Rewards: The total amount of $MES tokens distributed as staking rewards over a year.
Total Staked Value: The total value of meme tokens staked on the platform.
Factors Influencing APR
Several factors influence the APR for staked meme tokens on Memestaking:
Total Staked Value:
The more tokens staked on the platform, the lower the APR, as the rewards are distributed among more participants.
Reward Pool Allocation:
A portion of the total supply of $MES is allocated to the reward pool. The size of this pool affects the total annual rewards available for distribution.
Token Qualifying Criteria:
Tokens that meet specific criteria (existence >1 year, >500 holders, liquidity pool locked or listed on major CEX) receive an APR multiplier, enhancing their rewards.
Multiplier Effect for Qualifying Tokens
To incentivize the staking of high-quality meme tokens, Memestaking applies an APR multiplier to tokens that meet certain conditions. The multiplier effect ranges from 1.25x to 10x, depending on the criteria met. Here’s how the multiplier is applied:
Existence for More Than 1 Year:
Multiplier: 1.25x to 2x
Tokens that have been around for over a year show resilience and stability, qualifying for a moderate multiplier.
More Than 500 Holders:
Multiplier: 1.5x to 3x
Tokens with a large holder base indicate strong community support and wider acceptance, earning a higher multiplier.
Liquidity Pool Locked or Listed on Major CEX:
Multiplier: 2x to 5x
Tokens with locked liquidity pools or listings on major exchanges are considered more trustworthy, receiving the highest multipliers.
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