How to attract users:
Projects are advised to boost the rewards of their pools by allocating part of their inflation/revenue/tokens and paying a near 100% penalty on purpose. This will boost the pool’s APY and is therefore likely to attract more users.
We are working on some other ideas to boost the rewards even more in the future, but this is very confidential and not in the scope of the current project (and thus not relevant for the hackathon).
Penalty for early withdrawals.
The penalty is a linear function that starts from 100% on both the principal and rewards and ends at 0% when the stake has matured. So if a stake has been served for 60% of its term, the penalty is 40%.
There is also a late claim penalty which starts 1 week after the stake’s maturity. It increases 2% each week and is only applied to the stake’s rewards.
If a stake hasn’t been withdrawn within one year after its maturity, it can be closed by anyone. The stake’s principal will be given back to the original owner and rewards are put back into the pool. We’ve implemented this function as the shares would otherwise remain in the system and thus result in rewards getting stuck and not distributed to the other users in the long run. The function can be used by everyone, and therefore does not rely upon the Carpe Diem team. This is another measure to ensure decentralisation and longevity.