Name: Escrowed Steadefi
Symbol: esSDY
Chains: Arbitrum, Avalanche
esSDY is a non-transferable (and hence, non-tradeable) token. It can be obtained by converting SDY to esSDY at a 1:1 ratio instantly, or given as incentives for liquidity provision via Steadefi’s Farms.
esSDY exists to provide utility to the SDY token. Only by converting SDY to esSDY can token holders have the ability to earn protocol dividends and participate in governance proposals.
- SDY can be converted into esSDY at a 1:1 ratio instantly
- Steadefi’s will periodically distribute SDY/esSDY tokens as liquidity incentives
- esSDY can be:
- redeemed to SDY at different ratios based on vesting period
- staked for dividends from protocol fees
- used for governance votes
Redemption Ratio vs Time
esSDY can be redeemed for SDY with a minimum of a 30 days up to a maximum of 180 days lock and vesting period.
Depending on how long the esSDY to SDY redemption lock and vesting is set, the amount of SDY redeemable will vary based on this sliding scale:
- 30 days (minimum): 35%
- 60 days: 48% (+13%)
- 90 days: 61% (+13%)
- 120 days: 74% (+13%)
- 150 days 87% (+13%)
- 180 days 100% (+13%)
The rest of the esSDY that were not redeemed will be burned.
Example:
- Alice wants to redeem 1000 esSDY with a lock period of 30 days → 350 SDY after 30 days
- Bob wants to redeem 1000 esSDY with a lock period of 60 days → 480 SDY after 60 days
- Charles wants to redeem 1000 esSDY wth a lock period of 75 days → 553.1 SDY after 75 days
- Daisy wants to redeem 1000 esSDY with a lock period of 180 days → 1000 SDY after 180 days