Rewards
SHK Rewards provide benefits for long term users of the protocol, these rewards come in the form of Escrowed SHK and Multiplier Points.
Compounding vs Claiming
There are two options for rewards on https://shrike.dovish.finance/#/earn: "Compound" and "Claim".
Compounding will stake your pending Multiplier Points and Escrowed SHK rewards, this will increase the amount of rewards you receive.
Claiming will transfer any pending Escrowed SHK rewards and ETH rewards to your wallet.
If you compound or stake your Escrowed SHK tokens, you can unstake them for vesting at anytime later on.
Escrowed SHK
Escrowed SHK (esSHK) can be used in two ways:
Staked for rewards similar to regular SHK tokens
Vested to become actual SHK tokens over a period of one year
Each staked Escrowed SHK token will earn the same amount of Escrowed SHK and ETH rewards as a regular SHK token.
Note that Escrowed SHK (esSHK) is not meant to be transferrable. The amount of SHK or SHLP required to vest esSHK is unique per account and capped to the rewards received by that account. Please do not buy esSHK off the market or OTC as you will not be able to vest them.
Vesting
Escrowed SHK (esSHK) tokens can be converted into SHK tokens through vesting, this can be accessed on the Earn page.
When vesting is initiated, the average amount of SHK or SHLP tokens that was used to earn the esSHK rewards will be reserved.
For example, if you staked 1000 SHK and earned 100 esSHK tokens, then to vest 100 esSHK tokens, 1000 SHK tokens will be reserved. To vest 50 esSHK, 500 SHK tokens will be reserved. Note that this is an example and the actual ratio depends on the average staked amount and rewards earned for your account.
esSHK tokens that have been unstaked and deposited for vesting will not earn rewards. Staked tokens that are reserved for vesting will continue to earn rewards.
After initiating vesting, the esSHK tokens will be converted into SHK every second and will fully vest over 365 days. esSHK tokens that have been converted into SHK are claimable at anytime.
If a user sells SHK or SHLP tokens and would like to vest their esSHK rewards later on, they would need to re-buy the SHK or SHLP tokens. SHK, esSHK and Multiplier Points can be used interchangeably for the required reserve amount.
Depositing into the vesting vault while existing vesting is ongoing is supported.
Tokens that are reserved for vesting cannot be unstaked or sold. To unreserve the tokens, use the "Withdraw" button on the Earn page. Partial withdrawals are not supported, so withdrawing will withdraw and unreserve all tokens as well as pause vesting. All esSHK tokens that had been vested into SHK will remain as SHK tokens.
Multiplier Points
Multiplier Points reward long term holders without inflation.
When you stake SHK, you receive Multiplier Points every second at a fixed rate of 100% APR. 1000 SHK staked for one year would earn 1000 Multiplier Points.
Multiplier points can be staked for fee rewards by pressing the "Compound" button on the Earn page, each multiplier point will boost ETH APRs at the same rate as a regular SHK token.
When SHK or Escrowed SHK tokens are unstaked, the proportional amount of Multiplier Points are burnt. For example, if 1000 SHK is staked and 500 Multiplier Points have been earned so far, then unstaking 300 SHK would burn 150 (300 / 1000 * 500) Multiplier Points. The burn will apply to the total amount of Multiplier Points which includes both staked and unstaked Multiplier Points.
The "Boost Percentage" shown on the Earn page shows your individual boost amount from Multiplier Points. For example, if the ETH APR is 10% and you have $10,000 worth of SHK and esSHK, then your rewards would be $1000 annualized, if you additionally have an amount of Multiplier Points equivalent to 20% of your total amount of SHK and Escrowed SHK , your "Boost Percentage" would display as 20%, and you would get an extra $200 of ETH rewards annualized. The “Boost Percentage” is calculated from the ratio of Multiplier Points to your total amount of staked SHK:
Boost Percentage = 100 * (Staked Multiplier Points) / (Staked SHK + Staked esSHK)
An example:
100 * (4.5656) / (7.54 + 2.00) = 47.85%
Distribution Rate
Escrowed SHK will be distributed to staked SHK and SHLP.
Rewards are distributed every second to staked tokens.
Reward rates will be evaluated each month and may be subject to changes.
Summary
A summary of rewards and mechanics:
SHK: earns ETH, esSHK, Multiplier Points when staked
esSHK: earns ETH, esSHK, Multiplier Points when staked
Multiplier Points: boost ETH APRs when staked
SHLP: earns ETH, esSHK, automatically staked on mint
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