RVST Token Utility and Staking
Clients using the Revest Protocol will pay a small up-front fee to create their FNFTs, based on the total value locked into them. The fee will be paid in ETH, and distributed among RVST holders. 99% of the fees that are generated by the Revest platform will distributed to RVST token holders who stake their tokens into the Revest Protocol and those who stake their RVSTs into the Revest LPs, and the remaining 1% will be piped into the Revest LPs initially, with future applications being left to the team. Half of the fees generated by the Revest platform will be distributed to Revest liquidity providers and the other half will be distributed to RVST holders staking their tokens.
Revest Protocol fee allocation structure
For both single asset and liquidity pools, RVST holders can choose between 1, 3, 6, or 12-month staking periods. Each staking period is assigned a multiplier and this multiplier increases in magnitude with the length of the staking period to incentivize long-term staking, as shown in the table below:
Each stake in a given pool, i.e., the liquidity pool or the single asset pool, receives a certain number of “allocation points” according to the following formula:
The individual allocation points are then summed up across all the stakers who belong to the pool to determine the total number of allocation points for that pool, and each staker's share of the total amount of rewards distributed to the members of that pool is set equal to their share of the pool's total allocation points, as per the following formula:
Hence, under this system, 1, 3, 6, and 12-month stakers each get their rewards from the same pool. Upon staking their RVST tokens, stakers receive a Staked FNFT (S-FNFT), which is a special TL-FNFT that may only contain RVST tokens. Staking rewards are tied to the S-FNFT and may be claimed at any point in time, and the S-FNFTs may be freely transferred before the end of their staking period, just like any other FNFT. Withdrawals may only be made from this FNFT in specific windows depending on the pool to which it belongs.
Staking periods are not measured in calendar months, but in 30-day increments, as shown in the table below:
To unstake her tokens, a staker must wait until the end of her staking period. If she fails to withdraw her RVSTs from her S-FNFT during the withdrawal period, her S-FNFT will automatically re-lock itself for the same period, starting from the first day of the unlock, and she will have to wait until the end of this new period to withdraw her tokens. In addition to their staking rewards, RVST stakers may also receive discounts on the fees which they have paid for minting their own FNFTs. Finally, Revest partners integrating the Revest protocol to their platforms will be eligible to receive a kickback of up to 50% of the fees that are generated by their clients on the Revest platform.
The Revest Protocol will be operating in Open Beta for the first six months and the he protocol's fee engine will be turned off during the first 6-12 weeks. To to incentivize staking while the protocol's fee engine is turned off, staking rewards will be distributed exclusively in the form of RVST tokens during this period. After conducting extensive market research, the team will set a fee structure for users of the Revest Protocol and turn the fee engine on. Once this is done, staking rewards will be distributed both in RVST tokens and ETH and, beyond the Open Beta period, staking rewards will come exclusively from the fees generated by the Revest Protocol. The Revest team has set aside a total of 2.5 million RVST tokens for staking rewards during the Open Beta period.
In the spirit of decentralization and democratization underpinning the DeFi space, RVST holders staking their tokens will be granted the ability to participate in the governance of the RVST ecosystem and help shape the evolution of the Revest protocol. RVST stakers will have the opportunity to propose new initiatives aiming to further Revest Finance’s mission in the financial NFT space and may exercise their right to vote on the priority of new features being considered for the protocol. Members will cast their votes using an on-chain voting process. To be able to participate in the governance of the Revest ecosystem, S-FNFTs will need to have at least 27 days until maturity and be at least one day old. This mechanism ensures that only those with a vested interest in Revest may take part in decision prioritization that may greatly affect the project’s future success. This restriction will also offer protection against any future flash-loan attack vectors.