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Reward & Fee
s[Token]/sc[Token] tokens accrue Token rewards, generated from delegation rewards of underlying ORAI delegations.
Holders can send a request to the s[Token] reward contract, which prompts the transfer of accrued rewards to their account.
Rewards earned from staking will be automatically re-staked and accrue to the sc[Token] to earn compound rewards, thus increasing its value against Token.
For example, 1 sc[Token] can redeem 1 Token at the start. However, when staking rewards accumulate to sc[Token], it will steadily gain in value. If the Token staking APY is 30%, one year after genesis 1 sc[Token] is worth 1.3 Token.
The following direct fees are collected:
- Peg recovery fee: Only applies to s[Token] token. Slashing events decrease the s[Token] exchange rate, lowering the calculated value of a s[Token] token. The protocol applies a fee of 0.5%( configurable) to s[Token] mints and burns whenever the exchange rate is below 1, targeting a gradual recovery to a one-to-one peg.
- Maintenance fee: Only applies to sc[Token] token. This 2% fee is charged on the automatic compounding of rewards.
- Orchai operating costs fee. All accrued rewards are taxed at a configurable rate. The fee is set at 0% but can be increased later.