Rewards

NAVI Rewards provide benefits for long-term users of the protocol, these rewards come in the form of Escrowed NAVI and Multiplier Points.

Compounding vs Claiming

There are two options for rewards on Earn: "Compound" and "Claim".

Compounding will stake your pending Multiplier Points and Escrowed NAVI rewards, this will increase the number of rewards you receive.

Claiming will transfer any pending Escrowed NAVI rewards and S rewards to your wallet.

If you compound or stake your Escrowed NAVI tokens, you can unstake them for vesting at any time later on.

Escrowed NAVI

Escrowed NAVI (esNAVI) can be used in two ways:

Staked for rewards similar to regular NAVI tokens

Vested to become actual NAVI tokens over a period of one year

Each staked Escrowed NAVI token will earn the same amount of Escrowed NAVI and S rewards as a regular NAVI token.

Note that Escrowed NAVI (esNAVI) is not meant to be transferrable unless you are doing a complete account transfer. The amount of NAVI, NLP or NSLP required to vest esNAVI is unique per account and capped to the rewards received by that account. Please do not buy esNAVI off the market or OTC as you will not be able to vest them.

Vesting

Escrowed NAVI (esNAVI) tokens can be converted into NAVI tokens through vesting, this can be accessed on the Earn page.

When vesting is initiated, the average amount of NAVI, NLP or NSLP tokens that were used to earn the esNAVI rewards will be reserved.

For example, if you staked 1000 NAVI and earned 100 esNAVI tokens, then to vest 100 esNAVI tokens, 1000 NAVI tokens will be reserved. To vest 50 esNAVI, 500 NAVI 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.

esNAVI 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 esNAVI tokens will be converted into NAVI every second and will fully vest over 365 days. esNAVI tokens that have been converted into NAVI are claimable at any time.

If a user sells NAVI, NLP or NSLP tokens and would like to vest their esNAVI rewards, later on, they would need to re-buy the NAVI, NLP or NSLP tokens. NAVI, esNAVI, 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 esNAVI tokens that had been vested into NAVI will remain as NAVI tokens.

Multiplier Points

Multiplier Points reward long-term holders without inflation.

When you stake NAVI, you receive Multiplier Points every second at a fixed rate of 100% APR. 1000 NAVI 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 S APRs at the same rate as a regular NAVI token.

When NAVI or Escrowed NAVI tokens are unstaked, the proportional amount of Multiplier Points is burnt. For example, if 1000 NAVI is staked and 500 Multiplier Points have been earned so far, then unstaking 300 NAVI would burn 150 (300 / 1000 * 500) Multiplier Points. The burn will apply to the total amount of Multiplier Points, including both the staked and unstaked.

To transfer staked tokens without burning Multiplier Points, use the Transfer button on the Earn page.

The "Boost Percentage" shown on the Earn page shows your individual boost amount from Multiplier Points. For example, if the S APR is 10% and you have $10,000 worth of NAVI and esNAVI, then your rewards would be $1000 annualized if you additionally have several Multiplier Points equivalent to 20% of your total amount of NAVI and Escrowed NAVI, your "Boost Percentage" would display as 20%, and you would get an extra $200 of S rewards annualized.

The “Boost Percentage” is calculated from the ratio of Multiplier Points to your total amount of staked NAVI. This data will show you how much more percentage of S reward you will earn when you stake MPs compared to when you don't.

Boost Percentage = 100 * (Staked Multiplier Points) / (Staked NAVI + Staked esNAVI)

An example:

100 * (4.5656) / (7.54 + 2.00) = 47.85%

The Boosted APR shows how many S you will earn in a year from staking MPs.

S Boosted APR = S Base APR * User's staked MPs / User's staked NAVI & esNAVI

Summary

A summary of rewards and mechanics:

NAVI: earns S, esNAVI, and Multiplier Points when staked

esNAVI: earns S, esNAVI, and Multiplier Points when staked

Multiplier Points: boost S APRs when staked

NLP/NSLP : earns S, esNAVI, automatically staked on mint