Staking on HydraGon
Detailed Overview of Staking, Vesting, and Claiming Rewards in HYDRA
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Detailed Overview of Staking, Vesting, and Claiming Rewards in HYDRA
Last updated
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Staking on Hydra Chain involves delegating HYDRA coins in the network to support network operations like securing the blockchain and validating transactions. In return, participants receive rewards which are influenced by several dynamic factors such as loyalty (vesting period), validator performance and market conditions.
Vesting Period: The number of weeks you lock your HYDRA for.
Macro Factor: Adjusts rewards based on HYDRA's market trends.
RSI Bonus: Provides additional rewards based on relative market strength.
Connecting your Wallet: To begin with, Visit https://stake.hydrachain.org/. Here you can sign into and connect your EVM wallet to the staking platform. This could be wallets like MetaMask, Rabby, Enkrypt or cold wallets like Ledger, Trezor etc. The portal will prompt to add the Hydra Chain network to the Wallet if it is not already added.
Choose a Validator: On the Main Delegation tab, pick a validator of your choice to stake with by clicking on the rocket icon to the right.
Choose between non-vested or vested staking : You can stake without any lockup period for the "Unvested APR" (Subject to Macro Factor). For Bonus Rewards, you can opt for a lockup (Vested) duration between 1 and 52 weeks. Longer durations earn higher APR bonuses which you can view by changing the number of weeks in the "Vesting Period" box.
Stake HYDRA:
If opted for Unvested Staking: Enter the amount you want to stake in the amount box, click on delegate and confirm the transaction on your connected wallet.
If opted for Vested Staking:
Toggle on the "Vested Position" Button.
Key in the number of weeks you would like to vest (Between 1 to 52)
Enter the amount you want to stake in the amount box and Click on the "Create Manager" button.
Confirm the transaction on your wallet. The "Create Manager" button will change to "Delegate"
Click on the "Delegate" button and confirm the transaction in your wallet
View your staked positions: The Portfolio tab is the place where you can view and manage your staked positions, undelegate, withdraw, claim rewards etc.
Unvested Positions
Rewards accumulate every Epoch (500 Blocks or ~ 4 to 5 minutes)
Unvested delegated positions can claim the accumulated rewards at any time, by clicking on the orange "Claim Rewards" button to the right under "Action"
Vested Delegated Positions
Rewards are "Generated" as soon as you begin your vested delegated position, however cannot be claimed until after the vesting period ends.
The rewards can be claimed gradually after the respective vesting period has elapsed as and when they "mature". Rewards are claimable in batches based on their individual maturity as shown the the "Rewards Maturity" Column. For Example:
In a 12-week vesting period, the rewards are released in sequence:
Week 1 rewards → Claimable after Week 13.
Week 2 rewards → Claimable after Week 14, and so on.
In a 52-week vesting period, the rewards are released in sequence:
Week 1 rewards → Claimable after Week 52.
Week 52 rewards → Claimable after Week 102.
For instance: If the Rewards Maturity column shows 15% Matured, this means that 15% of your rewards have matured and are claimable.
Important Notes
Each epoch’s reward is tied to validator performance. Validators who miss attestations or underperform will reduce the rewards available to their delegators.
If you do not undelegate your Hydra after the vesting period ends, you will continue to earn the "Unvested APR" until you undelegate; and these rewards are claimable anytime.
If you want to stop staking your HYDRA or need to undelegate / withdraw and restake your HYDRA, the process is easy. Here's how it works:
Unvested Positions
On the Portfolio Tab, find the position you want to undelegate
You can recognize unvested positions if the "Ends In" column shows a dash — for that position. On the right, Click “Undelegate”
After Undelegating, your HYDRA enters a "cooldown" phase for 7 days. This amount will display in the lower half of the page under the "Withdrawables" Section
After 7 days, you can withdraw your HYDRA to your wallet by clicking on the "Withdraw" Button
Vested Positions
On the Portfolio Tab, find the position you want to undelegate.
Check the Period under "Ends In"; if it says "Ended", your are safe to undelegate without any penalty. If it shows a number of Days, then you need to wait for that many days to undelegate. On the right, Click “Undelegate”
After Undelegating, your HYDRA enters a "cooldown" phase for 7 days. This amount will display in the lower half of the page under the "Withdrawables" Section
After 7 days, you can withdraw your HYDRA to your wallet by clicking on the "Withdraw" Button
Cooldown Period: After Undelegating any type of staked position, there’s a 7-day cooldown before the coins can be withdrawn to your wallet, which safeguards against panic-induced network instability.
Penalties for early undelegation: If you undelegate before your vesting period is over, you will face a penalty (0.5% per remaining week), and lose any accumulated rewards.
When staking with vesting, users lock their funds for a chosen duration in exchange for loyalty bonuses on the APR. Rewards for vested positions grow exponentially with the length of the lockup
Reward Calculation:
Base APR: Default rate is 5%.
Example:
A 12-week vesting period gives an additional bonus of approximately 6.23% APR.
A 52-week vesting period adds a significant bonus of 21.78% APR.
Premature Undelegation Penalty:
Penalty: 0.5% of the staked amount per remaining week of the lockup.
All unclaimed rewards are burned if undelegated prematurely.
Example:
A user prematurely cancels a 52-week lockup with 10 weeks remaining: Penalty = 10 weeks × 0.5% = 5% of the stake and all accumulated rewards of the past 42 weeks are burned
The protocol automatically optimizes the staking APR based on the market cycle in real time, making it self-aware. It Acts as a global multiplier to the Base APR and Vesting Bonus. Boosts the APR during bullish periods and lowers it at bearish times. The goal of this feature is to introduce a dynamic macro factor that protects the network from unnecessary inflation during bearish market phases.
The Staking page at https://stake.hydrachain.org/ displays the live Macro Factor.
To explain a bit in detail on how it works, see the Below table shows the Macro Factor which is divided into 7 segments
The ratio between SMA 115 and SMA 310 on the daily time frame determines the SMA Ratio and the state of the market (Bullish or Bearish)
It is important to note that the macro factor acts as a global multiplier, so everyone will be affected equally by it, and it would immediately expand if the market performance improves. Its goal is to protect the interest of the network and its community.
The RSI Bonus (Relative Strength Index Bonus) is a short term & limited time Bonus incentive on new vested staking positions based on Hydra’s RSI levels (up to 70%).
Here is how it works:
If RSI is 30-35 (Oversold) Add +15% Bonus
If RSI is 20-30 (Fear) Add +25% Bonus
If RSI is < 20 (Extreme Fear) Add +70% Bonus
Note: The above bonuses are not direct APR additions. Instead they are final multipliers on whatever APR the position would be yielding under normal conditions. E.g. a 10% default APR with a 70% bonus would amount to a 17% APR.
The combination of the Macro Factor and RSI Bonus ensures that rewards reflect both market trends and investor behavior
Check the position details in the subsequent pop-up and confirm the transaction in your wallet.
Check the position details in the subsequent pop-up and click on the blue Sign button and confirm the transaction in your wallet. Then Click on undelegate and confirm the transaction in your wallet.
Vesting Bonus:
