Rewards System

Staking on the CAGA network lets you earn rewards in the form of CAGA tokens. Understanding how these rewards are calculated is essential for making informed staking decisions.

1. Rewards Formula

$$\text{Rewards} = \text{Amount Staked} \times (1 + \text{Annual Reward Rate}) - \text{Amount Staked}$$

• Base Formula: Rewards are typically calculated based on these key factors:

  • Amount Staked: The more tokens you stake, the higher your potential rewards.

  • Network Activity: Rewards are influenced by overall transaction activity and volume on the CAGA network.

  • Validator Performance (if applicable): Rewards may be adjusted based on the reliability and uptime of the validator you are staking with.

2. APR in CAGA Staking Pools

• APR (Annual Percentage Rate): APR is a common metric used to indicate potential returns on staking. However, it's important to understand that APR can fluctuate.

• Live Figures: The CAGA dApp provides real-time APR values for each staking pool.

• Factors Affecting APR: APR can change based on network conditions and the total amount of tokens staked.

3. Effective Annual Yield (EAY)

$$\text{EAY} = (1 + \text{Rewards Rate})^{\text{Number of Compounding Periods}}$$

• EAY vs. APR: EAY offers a more comprehensive picture of your staking returns by taking into account the compounding effect of rewards.

• Compounding: When you earn rewards, they can be re-staked to generate additional rewards over time. EAY factors in this potential growth.

4. How to Claim Rewards

• Claim Process: The CAGA dApp will typically have a dedicated "Claim Rewards" function.

• Frequency: You can usually claim rewards at your preferred intervals.

• Fees: Be aware that a small transaction fee may apply when claiming rewards.