Mining Phase 2 has Launched | This article helps you to understand how to obtain liquidity income

ShardingDAO
7 min readApr 13, 2021

ShardingDAO has officially launched Mining Phase 2 on April 13th. Users can establish an invitation relationship and stake LP Tokens of “SHD-ETH”, “SHD-BNB” and “Shard-Subscription Tokens” to obtain liquidity income.

ShardingDAO’s Mining Phase 2 total supply 21,000,000 SHD, released according to the 4-year halving rule; the output of each block of the Ethereum chain is 1.04994 SHD, and the output of each block of the Binance chain is 0.01246 SHD. Of all mining revenue, 80% is allocated to mining users and 20% is allocated to DeveloperDAO.

Mining Rules

During this period, users can obtain SHD mining income by using LP Tokens of “SHD-ETH”, “SHD-BNB”, and “Shard-Subscription Tokens” on the ShardingDAO platform for liquidity mining. Among them, the SHD rewards of the “SHD-ETH” and “SHD-BNB” mining pools accounted for 90%; the SHD rewards of the top 2 mining pools in the “Shard-Subscription Tokens” lock-up amount accounted for 10% which users divide equally. Users need to set the number of staking and a lock-up period of 1–36 months (minimum unit is 1 month). The pledged tokens can be redeemed after the lock-up period ends, and the redemption will invalidate the invitation relationship of the corresponding mining pool.

Users who participate in the invitation mechanism can get more mining rewards. For the inviter, the more people invited, the higher the lock-up weight.

Users who have not established an invitation relationship cannot apply for mining. You can join the ShardingDAO Discord server and find the public invitation link shared by community users: https://discord.com/invite/Y4YsGzjhbH

About liquid mining (fragment mining)

1/ Liquidity mining (fragment mining) lock-up rules

After the user creates the “Shard-Subscription Tokens” trading pool, the platform will automatically create the LP Token mining pool of the trading pair in ShardingDAO Farm through smart contracts to support users to participate in liquid mining and obtain SHD mining rewards.

When the user locks the position, he needs to select the lock amount and time (in months). During the lock-up period, the user cannot redeem the LP Token; the user needs to redeem the LP Token after the lock time. If there is no redemption after maturity, the weight will continue to be calculated.

User lock weight calculation:

Calculating the proportion of user locked positions:

*Rules for calculating weights of multiple locks*:

In the case that the user apply for lock- the position multiple times, the user’s lock weight is calculated in sections. Each time a lock is added, the weight will be recalculated and the expiration time will be updated to the maximum expiration time. The redemption will not be possible until the expiration time. Return all tokens, otherwise no tokens can be redeemed. the position multiple times, the user’s lock weight is calculated in sections. Each time a lock is added, the weight will be recalculated and the expiration time will be updated to the maximum expiration time. The redemption will not be possible until the expiration time. Return all tokens, otherwise no tokens can be redeemed.

  • Example 1:
  • The first lock-up amount is 100 and the duration is 6 months; before the first lock-up time expires, at the fifth month, an additional lock-up amount 50 and the duration is 5 months, then the expiration time will follow the second lock-up expiration. At this time, the weight is calculated as shown in the following table:
  • Example 2:
  • The first lock-up quantity is 100, the duration is 6 months, and it is not redeemed after the expiration; 2 months after the first lock-up expires, an additional lock is added, the quantity is 50, and the duration is 3 months, then the updated expiration time is the expiration time of the second lock-up. At this time, the weight is calculated as shown in the following table:

2/ Rules of Mining Reward Distribution

SHD rewards are distributed to users participating in liquid mining in each mining pool according to the SHD release plan. Each mining pool will then distribute SHD rewards when users redeem according to the user’s lock-up weight. The specific distribution rules are as follows:

3/ Rule of Mining Pool Ranking Update

For the mining pool ranked after Top2, set it as mining pool A, any user can initiate a “rank update” transaction for the mining pool, and the user needs to connect the mining pool A with the top 2 “Shard-Subscription Tokens” LP Token Compare the lock volume of the mining pools. If the lock volume of a certain mining pool B is less than that of the mining pool A, the mining pool B will be kicked out of the ranking (even if there is a lock in the top 2 pool than the one that has been removed from the top 2 ranking Low stock).

If no user conducts the “update ranking” transaction, the top 2 mining pools will not change. Even if the lock-up amount is lower than the top 2 mining pools, they will continue to receive SHD rewards.

Invitations

The invitation only works for liquid mining. The establishment of an invitation relationship is a bonus to the user’s weight in the mining pool (ie Booster). The behavior of being invited and inviting others is a way to establish an invitation relationship.

1/ Rules of Invitation relationship establishment

Limitation on the number of invitations: Each inviter can use the same invitation link to invite multiple users, and each user can only be invited once, that is, the relationship cannot be established again when the page is opened using other invitation links after being invited.

Participation in the invitation time: the invitation relationship can be established at any time after the product is launched.

When you have not accepted the invitation: That is, the invitation relationship has not been established, you will not be able to invite other users, nor can you participate in liquid mining; if you want to accept the invitation, you can obtain the invitation link provided by the invited user through the community, open the invitation link and complete it as required An invitation relationship can be established by trading.

After the invitation is accepted: The inviter and the invitee can participate in liquidity mining, and the lock-up weight will be added based on the established invitation relationship. The user can also generate an invitation link to invite multiple users to increase the lock-up weight bonus.

Note: The invitation is a one-way relationship. Two users cannot invite each other. For example, if user A invites user B, it means that A and B have established an invitation relationship, and user B can no longer invite A in reverse.

2/ Rule of Invitation relationship changes

The bonus of the invitation relationship to the lock-up weight (ie Booster) is only for a single mining pool; if the user locks in multiple mining pools, the lock-up weight and invitation relationship bonus of each mining pool are calculated separately.

Invitation relationship changes:

  • In a single mining pool, as long as the user’s lock-up amount decreases (that is, the user redeems the expired LP Token), the invitation relationship between the user and the previous mine pool becomes invalid, and the user will not be able to re-establish the invitation relationship; invitation relationships from other mining pools and the lockup bonus is not affected.
  • If the user’s current LP Token of all mining pools are redeemed once, the invitation relationship between the user and the his inviter will be completely disconnected, and the invitation relationship cannot be re-established; the user’s lock-up in the new mining pool will not increase the booster bonus. .

3/ The calculation method of the bonus of the invitation relationship to the lock weight (Booster)

The calculation method for the bonus of the invitation relationship to the lock-up weight of liquidity mining:

WHERE:
- Final Staking Weight: a user’s original share in the pool that includes his or her Referral Relationship Bonuses;
- Staking Weight: a user’s original share in the pool that dosn’t include his or her Referral Relationship Bonus’;
- Referral Relationships Bonus: for the referee, his or her Staking Weight enjoys an extra 10% multiplier;
- User N Staking Weight: Invited user’s lock-up weight; inviting a user will get 5% of the user’s lock-up weight (not including the invitation relationship).

The calculation method of User-A’s locked position proportion:

Note: If the invitation relationship is not established, use Staking Weight to bring in the formula calculation

Attention — After the second stage of mining is started, the first stage of mining will end simultaneously, and no revenue will be generated. Users can apply a series of operations such as asset redemption, exchange, and provision of liquidity through the migration function.The migration function has been synchronized and launched today. Users can CLICK the link to view the tutorial of Mining Migration.

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