Scenarios in Dynamic Staking

Scenarios Related to Profits and Losses:

Profitable Cycle

• Description: At the end of the cycle, the total profit is calculated.

• Fund Allocation: Profits are distributed from the main contract to sub-pools and then to individual stakers based on their stake amount minus any drawdowns.

Negative Cycle

• Description: At the end of the cycle, the total loss (drawdown) is calculated.

• Fund Allocation: Losses are recorded against sub-pools. Future profits first cover these drawdowns before any distribution to stakers.

Partial Pool Profit/Loss

• Description: Some sub-pools experience profit, while others experience a loss.

• Fund Allocation: Profitable sub-pools distribute gains to users, while losses are covered by future profits. Drawdowns are managed at the sub-pool level.

Emergency Balancing

• Description: Unexpected events cause an imbalance.

• Fund Allocation: Funds are re-balanced across sub-pools to protect against excessive drawdowns and ensure liquidity.

Scenarios Related to the End of Stakes:

Cycle End Balancing

• Description: Re-balancing of funds across sub-pools at the end of a cycle.

• Fund Allocation: Ensures stability by redistributing funds, covering drawdowns, and maintaining liquidity for the next cycle.

Stake End

• Description: Users' stakes reach the end of their 20-cycle duration.

• Fund Allocation: Users must decide to either re-stake their tokens for another cycle or withdraw their tokens. Profits are distributed based on the performance of the sub-pool during the staking period.

Scenarios Related to New Stakes:

Initial Staking

• Description: Users stake tokens in the dynamic staking contract.

• Fund Allocation: Stakes are assigned to relevant sub-pools based on capacity and cycle timing. Each pool has a fixed duration of 20 cycles (4 weeks each).

Adjusting Stakes During Cycle

• Description: Users adjust their stakes in sub-pools during an ongoing cycle.

• Fund Allocation: New stakes are added to the relevant sub-pools, and withdrawals are managed to ensure stability. Adjustments are reflected in the next cycle.

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Additional Information:

Profit Distribution:

• Positive Returns: Distributed proportionally to users' stakes in sub-pools.

• Negative Returns: Recorded as drawdowns and covered by future profits before distribution.

• Drawdown Management: Ensures users' stakes are protected by balancing profits and losses within sub-pools.

Main Contract and Sub-Pools:

• Main Contract: Manages overall staking and coordinates with sub-pools for profit and loss distribution.

• Sub-Pools: Handle individual stakes and cycle-specific accounting, ensuring fair distribution based on performance.