Holder bonus
Holder bonus is accrued for continuous deposits into ABRA liquidity pool strategies
Every day at 16:00 UTC, this bonus is automatically credited in the form of additional ABRA tokens to everyone investing in ABRA liquidity pool strategies.
The weekly holder bonus pool is 20% of the main rewards allocated to the liquidity pool based on voting results but cannot exceed 7% of the total weekly emission
Rewards received as a holder bonus are not counted toward referral bonuses
The holder bonus is distributed proportionally to users' liquidity provided to the USDT/ABRA liquidity pool. When calculating the bonus, a multiplier is applied, depending on the duration of the continuous deposit. This multiplier depends on the accumulated holder days.
The holder bonus does not apply if liquidity is deposited via the Uniswap platform; only deposits made through Cadabra's website or smart contracts are eligible.
Holder Bonus Calculation Formula
Where:
userStrategyLiquidity: the liquidity deposited into the liquidity pool strategy
userBHMultiplicator: the increasing multiplier, depending on the number of holder days
HBPool: the reward pool for the holder bonus, allocated from the weekly emission.
SumOfUserBHShares: the sum of shares of all users' investments (userBHShare for each user).
Rules for Calculating the Multiplier
The multiplier (userBHMultiplicator) depends on the number of holder days:
Up to 7 days: no multiplier, equal to 1.
7 days or more: the bonus yield increases by 1.2 times (or 20%).
15+ days: increases by 1.5 times (or 50%).
30+ days: doubles (multiplier of 2).
60+ days: triples (multiplier of 3).
90+ days: increases by 4 times.
180+ days: increases by 6 times.
360+ days: increases by 10 times.
With an increase in holder days, the user's share of the Holder Bonus pool also increases, allowing users to earn up to 10 times more with the same amount of funds.
Rules for Accumulating Holder Days
Any withdrawal, even partial, resets the number of accumulated holder days to zero. This means that the holder bonus will continue to accrue, but at a lower rate, as the multiplier returns to 1.
When adding more funds, the number of accumulated days is recalculated proportionally based on the additional deposit using the formula:
newBHDays=(userStrategyLiquidity*currentBHDays)/newUserStrategyLiquidity
In the first months after the platform launch, the number of holder days earned will be higher:
In the first 30 days, all earned holder days are tripled
In the second 30 days, all earned holder days are doubled
Examples
Let's calculate the holder bonus that the user will receive for this epoch. It is important to understand that all numbers are chosen for simplicity of calculation and are not predictions of the rate or TVL.
userStrategyLiquidity = $10,000
userBHMultiplicator = 3, as 70 Holder Days have been accumulated: 30 days for 10 days in the tripling period + 60 days for 30 days in the doubling period + 10 days in normal mode.
userBHShare = 30,000, userStrategyBalance * userBHMultiplicator
HBPool (Holder Bonus Pool) = 1,000 ABRA, which is 20% of the 5,000 ABRA allocated to the strategy.
SumOfUserBHShares = 1,500,000, assuming the average multiplier among all users is 1.5.
Then the holder bonus for this week for our user will be 20 ABRA, or in annual terms, this gives an extra APR of 20.4%, which, together with the yield from the liquidity pool, gives an APR of 72.4%.
However, if the top-up is more significant, for example, $5,000, then the new number of holder days will be approximately 46 days, and therefore the multiplier will be 2, resulting in an extra APR of about 14%.
Last updated