MemeFi (DeFi) & Staking
$babyLUNA holders will have the opportunity to earn interest & passive income through our staking platform, also holders can simultaneously earn passive income from reflection rewards and while staking due to our custom Generation 4.0 smart contract. Our staking platform will revolve around three tiers, each with a different lock period. The higher the tier an investor is in the higher the passive income (APR/APY). There will be an 'Early Incentive Staking Boost', which will boost staking rewards for the first 2 weeks after release.
Staking is the primary value accrual strategy of Baby Luna
Users stake their $babyLUNA on the Baby Luna dApp website to earn rewards. The rewards can vary based on the number of $babyLUNA staked in the protocol and the reward rate set by monetary policy.
The increase in your stake of $babyLUNA translates into a constantly falling cost basis converging on zero. If the market price of $babyLUNA drops below your initial purchase price, the increase in your staked $babyLUNA balance should eventually outpace the fall in price, given a long enough staking period.
Unlike traditional MasterChef contracts which use the balance of tokens in the contract as the lpSupply, our contract uses cached balances which are updated on each deposit, withdrawal, and emergencyWithdraw function usage. This mechanism ensures that many pools of the same token type can be open if needed without interfering with each other. This is a new feature that innovates traditional yield farming protocols. Why? In a traditional farm, when a newly opened pool's APR begins to decrease, users refrain from depositing more capital. With Baby Luna's new MasterChef contract, whenever a pool's APR becomes unattractive, we will open a new pool with increased APR, increasing TVL (Total Locked Value)--> and this loop can be infinite, thanks to our new MasterChef technology.