NovaBank
  • Nova Bank
  • Overview and Background Story of NovaBank
  • Economic Theories of NovaBank
    • Internal Coordination Theory
    • The Relationship Between Material Economy and Digital Economy
    • Game Theory of the NovaBank Protocol
    • Applying Internal Coordination Theory to the NovaBank Protocol
    • How These Mechanisms Create an Economic Flywheel
  • Introduction to the Operating Mechanism of the NovaBank Protocol
    • Treasury Contract
    • Sales Contract
    • Bond Contract
    • Staking Contract
    • Reward Vesting Contract
    • Contribution Value Algorithm Contract
  • NovaBank Internal Operation Mechanism Diagram
  • Explanation of NVB Token
  • NovaBank Ecosystem Development Plan
    • History of Token Economy Development
    • Challenges Faced by DeFi 1.0
    • NovaBank's Important Role in the Token Economy
    • NovaBank Launches Cross-Chain Protocol
    • NovaBank's Innovative Lending Product Plan
    • NovaBank DEX Implementation
    • NovaBank's Treasury Appreciation Plan
    • NovaBank 3.0: A Global Integrated Financial Autonomous System Based on Algorithmic Non-Stablecoin
  • NovaBank Ecosystem Diagram
  • Roadmap
    • Phase 1: Platform Development and Initial Operations
    • Phase 2: Business Expansion and Feature Upgrades
    • Phase 3: Global Expansion and Ecosystem Development
    • Phase 4: Innovation and Diversified Services
    • Phase 5: Building a Comprehensive Digital Financial Platform
    • NovaBank’s Vision for the Future
  • Contact
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  • Staking and Unstaking
  • Rebase
  1. Introduction to the Operating Mechanism of the NovaBank Protocol

Staking Contract

Staking logic is relatively simple. Staking is the primary source of income for users participating in NovaBank. It's designed to be participant-led, rewarding NovaBank consensus builders and NVB token holders. For participants, the best method is to hold NVB long-term; the protocol automatically distributes rewards and compounds interest.

Staking and Unstaking

By selecting "Stake" on the official website, participants send their held NVB into the staking contract and receive sNVB at a 1:1 ratio. sNVB is a proof of staking participation and has no other use besides holding. When users choose to unstake, they send sNVB back to the staking contract and receive NVB at a 1:1 ratio.

Rebase

The protocol directly allocates tokens to the staking contract without needing to redeem sNVB. This increases the ratio of NVB to sNVB, leading to a rebase difference.

Example: When there are 100,000 NVB staked and 100,000 sNVB outstanding, and the protocol distributes 1,000 NVB as staking rewards in one day, it sends these NVB into the staking contract. The staking contract then holds 101,000 NVB with 100,000 sNVB outstanding. The supply of sNVB will increase by 1,000 (1%) to match the NVB amount. Therefore, the daily rebase yield of sNVB is 1%.

NovaBank performs a rebase every 8 hours on-chain, distributing staking rewards every 8 hours. The protocol distributes rewards fairly to all stakers through sNVB, with everyone receiving the same percentage profit. The protocol automatically compounds interest; stakers don't need to claim rewards— just maintain their staking.

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Last updated 7 months ago