We’ve taken feedback from the community and are proposing a new approach to calculating the CRO DeFi Yield Multiplier for users with multiple CRO stakes in DeFi Swap Boost.

DeFi Swap users with multiple CRO stakes will have a fairer distribution method to calculate the final multiplier across their stakes. The current approach takes a weighted average of multipliers according to the amount of various CRO stakes, and would always get a final multiplier somewhere in between the multipliers of individual stakes. In contrast, the proposed approach would sum up the amount of all stakes and consider the staking term of the largest stake:

  • Users will get a higher-tiered multiplier—if adding a new stake means the total staked amount arrives at the next tier.
  • If the new stake is larger than the largest existing CRO stake, then its staking term will be considered when looking up the final multiplier.
  • If the new stake is of equal value to the largest CRO stake, the longer staking term will apply. A detailed example can be found below.

For users with a single CRO stake, their multiplier remains the same.

We welcome input from the community via this poll on Twitter, which closes on Monday, 16 November 2020 at 6:00 pm HKT.

Review of Current DeFi Swap Yield Multiplier

The CRO DeFi Yield Multiplier is rewarded based on the table below. Users with a single CRO stake can determine their multiplier from their CRO stake and the staking term. For example, 10,000 CRO staked for 1 year generates a multiplier of 1.5x.

The table will also be applied to the liquidity provided, as a percentage of total liquidity across pools, to calculate a user’s share of the daily yield pool.

In the current approach for multiple CRO stakes, the multiplier is calculated based on the weighted average of multipliers according to the staking amount.

Take the example of a user who has:
1 term of 40,000 CRO for 4 years,
Then adds a second term of 7,000 CRO for 3 years,
Then adds a third term of 4,000 CRO for 1 year.

The multiplier for each should be as follows (round down to the lower tier):
40,000 CRO for 4 years = 3.0x (Round down to 10,000 CRO and 4 years)
7,000 CRO for 3 years = 1.8x (Round down to 5,000 CRO and 3 years)
4,000 CRO for 1 year = 1.0x (Round down to 1,000 CRO and 1 year)

Since the user has multiple terms, their 40,000 CRO for a 4-year term receives a reduced multiplier of 2.68x, instead of 3x.

Here is the current calculation resulting in the reduced multiplier:
40,000/(40,000+7,000+4,000)*3.0x + 7,000/(40,000+7,000+4,000)*1.8x + 4,000/(40,000+7,000+4,000)*1.0x

Proposal for New DeFi Swap Yield Multiplier

Crypto.com is proposing to change the multiplier for users with multiple CRO stakes based on the sum of CRO stakes and the staking term of the largest CRO stake. In cases where there are two stakes of the same CRO amount, the longer staking term will apply.

Using the same example:
1 term of 40,000 CRO for 4 years
1 term of 7,000 CRO for 3 years
1 term of 4,000 CRO for 1 year

Sum of CRO stake = 51,000 CRO
Term of largest CRO stake (40,000 CRO for 4 years) = 4 years

Round down the CRO staking amount and apply the multipliers shown on the table:
50,000 CRO and 4 years -> 4.0x
The user’s multiplier will be 4.0x.

To summarise:

Multiplier Calculation

Current Reward Approach

New Reward Approach

Multiple CRO stake users

Multiplier is a weighted average of multipliers to the CRO stakes

Multiplier is maximised to the sum of the CRO stake 

Single CRO stake users

Multiplier unchanged 

Multiplier unchanged 

Increasing the multiplier for multi-stake users means the CRO allocation rewards that are distributed daily may potentially be affected.

Let us know whether you prefer that we keep the current DeFi Swap Yield multiplier, or adopt the proposal.

Take the poll on Twitter!