POL Staking
Earn up to 150% based on your staking streak. The longer the HODL higher the APY rewards
The staking rewards program is designed with a clear objective of:
  1. 1.
    Securing network by bootstrapping a decentralized fund to be used in case of insolvency or other issues with the protocol.
  2. 2.
    Bootstrap a community of POL HODLers and incentivize long term POL HODLing.
  3. 3.
    Incentivize POLies to govern correctly: POLies risk dilutive events as the ultimate backstop and act as governors of risk in the system.
Staking is a highly profitable, long term, passive value accrual strategy of Polysynth Protocol.
Stakers stake their POL, on the Polysynth platform to earn rebase rewards. POL rebase rewards are linked to protocol growth and staking streak. Reward rebase is applied every 24 hours.
Stakers can earn up to 150% APY rewards based on their HODLing streak. The longer the HODL higher the APY rewards.
POL and sPOL (staked POL) are always honoured 1:1. When you stake, you lock POL and receive an equal amount of sPOL. Your sPOL balance rebases up automatically at the end of every epoch. sPOL is transferable and therefore composable with other DeFi protocols.
When you unstake, you burn sPOL and receive an equal amount of POL. Unstaking means the user will forfeit the upcoming rebase reward. Note that the forfeited reward is only applicable to the unstaked amount; the remaining staked POL (if any) will continue to receive rebase rewards.

Working Mechanism

Staking APY is calculated from the rebase rate using the following equation:
Where r is equal to
Terms used in the working mechanism of POL staking
Since ri is the daily rebase rate, we have multiplied staked tokens with the daily rebase rate to compute total rewards after the nth day. Also, since there are 365 days in a year and staking was done till the nth day, APY is calculated by raising compounded returns to power 365/n.
The following example illustrates staking rewards earned by stakers using the formula listed above:
An example of how POL staking works

Staking Rewards FAQs

Who is eligible for staking rewards?
All POLies are eligible to stake and earn staking rewards per rebase cycle.
The Polysynth Protocol is not available in the United States or Restricted Territories, as defined in the Polysynth’s terms of service.
How much sPOL did I earn in the continuous staking streak strategy?
Stakers can see how much sPOL they have earned here.
How do I claim my staking rewards?
All or partial sPOL can be unstaked. Unstaked sPOL will be auto-converted into POL. These POL will have a 30 days cooling period, after which they can be claimed and transferred to your wallet and/or used for governance.
What happens if I break my staking streak?
If you break your staking streak, your staking streak factor, s will re-start from 1 (for day 1) and it will take an equal amount of time to reach your all-time high staking streak factor.
It’s a wise strategy to not unstake your sPOL unless you really need to do so. Unstaking will reset staking streak to 1.
What are the risks involved?
Staked POL may be slashed in case of a shortfall event. Slashing occurs at the discretion of Polysynth governance and requires a governance vote to enact.
What are shortfall events?
The interpretation for the occurrence of a shortfall event is subject to a Polysynth governance vote but may include:
  • Exchange Solvency (e.g., exchange becoming under-collateralized due to unprofitable liquidations)
  • Smart contract attacks
  • Other events Polysynth governance deems to have resulted in a shortfall
What happens in a shortfall event?
In a shortfall event, token holder balances (including unstaked, but within the cooldown period) can be slashed and transferred to another address or contract (set by Polysynth governance on a case by case basis).
All funds in the contract, active or inactive, are slashable. Within the contract, slashing is implemented via an update to the exchange rate between POL and sPOL. This means that as slashes occur, the exchange rate between POL and sPOL will diverge from its initial value of 1:1. Note that the earning of staking rewards is unaffected by slashes.
Polysynth governance must pass a short timelock proposal to slash staked tokens. After a governance vote on slashing staked POL tokens, slashed POL may be auctioned on the market to be sold against the assets needed to mitigate the incurred deficit.