It’s Live: New Reward Pool withdrawal fees
Introducing a reduction from 30% to 1% in standard withdrawal fees.
On June 13, 2022, we announced a list of major updates for the Cross-Chain Bridge in the coming months, and today we are proud to announce the reduction of the standard Reward Pool withdrawal fees.
With the launch of v2, we introduced a 30% withdrawal fee for people unstaking the BRIDGE tokens from a Reward Pool. This needed to be introduced to avoid users/bots jumping from pool to pool to collect fees (by watching the on-chain data) while also incentivising long-term stakings.
To increase the flexibility for generating passive income, the 30% withdrawal fee is now only 1% for everybody who withdraws 7 days or later after the last deposit.
For withdrawals within the first 7 days, the 30% fee remains.
The new fee structure will allow users to change Reward Pools with much more flexibility and thus increase the value and utility for BRIDGE token holders.
Both the 30% in the first 7 days and the 1% after that are utilized to burn BRIDGE.
Important: The 7-day staking period restarts every time you stake additional BRIDGE to a specific pool. For example if you stake BRIDGE today in the PMON Reward Pool, then stake BRIDGE again two days later in the PMON Reward Pool the 7-day period will reset from the second deposit date.
No fees are associated with harvesting rewards.
How do Reward Pools work?
Reward Pools on the Cross-Chain Bridge distribute the majority of protocol incentive or bridging fees to BRIDGE owners. 70% of the fees collected from bridgings in a specific token are sent to the corresponding Reward Pool.
BRIDGE can be acquired from a supported DEX or yield earned from the USDT farm, this can then be staked in the Reward Pools. Unlike Liquidity Mining & the USDT Farm no LP token is required.
BRIDGE holders can choose the token they would like to be rewarded in — as they can stake their BRIDGE in any Reward Pool (no LP token required). As an example: you can stake your BRIDGE tokens into the Ethereum PMON Reward Pool to start earning a share of the 70% protocol incentive or bridging fees when PMON is bridged to the Ethereum Network.
The rewards per user will be determined by a) the collected protocol incentive or bridging fees, respectively (and thus the bridging volume in the asset of the Reward Pool), and b) the share of the pool — which is:
Reward Pool Share =
User Amount of BRIDGE Tokens in Pool / Total Amount of BRIDGE Tokens in Pool
The APR of Reward Pools shown on the website is an estimate and average calculated by using the current staking amount and bridgings from the last 7 days (except for the initial days after a new token listing when no 7-day history is available. In this case, the longest available period between 24 hours and 7 days is taken). The actual Rewards depend on the amount staked as well as the size & amount of bridgings that occur in the future. The greater the amount staked and the size & amount of bridgings, the higher the collected protocol incentive or bridging fees, meaning the higher the rewards.
The fees dedicated to Reward Pools will be randomly sent roughly once per day (if a transaction occurs).
Most new assets that get self-listed (or whitelisted by the team) generate a Reward Pool.
More technical details can be found in the Smart Contracts section of our GitBook.
Onwards and upwards!
This year our team continues to focus on delivering as much value as possible to the BRIDGE community. Our goal, as always, is to provide the best and safest bridging solution.