Reward Mechanism

SwanFi Staking & Rewards – FAQs

1. How does rebasing work in SwanFi?

When you stake SWAN into SwanFi, you receive shares behind the scenes. Your balance is determined by:

Formula: balanceOf(user) = (sharesOf(user) / getTotalShares()) * totalPooledSwan()

This means your balance is a percentage of the total pooled SWAN.

• When you stake SWAN: totalPooledSwan increases.

• When you withdraw SWAN: totalPooledSwan decreases.

• When the admin posts rewards: The contract updates totalPooledSwan, increasing all users' balances automatically while their shares remain unchanged.

2. How do I earn rewards on SwanFi?

• When you stake SWAN into SwanFi, you receive fSWAN.

• The pooled SWAN is then staked into the Parasail protocol to earn pSWAN.

• Parasail has a rebasing mechanism where rewards are calculated whenever pSWAN is staked or withdrawn.

• Your rewards come from the pSWAN staking wallet.

3. How are daily rewards calculated?

Every day at 10 AM EST, rewards are calculated using:

todays_reward = (todays_pswan_balance - yesterdays_pswan_balance - incoming_pswan + outgoing_pswan) * 0.9

Important Notes:

• Incoming pSWAN from transfers/stakes is excluded from rewards.

• If no one stakes/withdraws for 24 hours, no rewards are realized until a rebase is triggered.

4. How can I withdraw my SWAN?

1. Request Withdrawal: When you initiate a withdrawal, your fSWAN is locked in the withdraw wallet, starting a 3-day cooldown.

2. Processing: The request is processed by our scanner, which then requests a withdrawal from Parasail.

3. Completion: Once SWAN is returned to SwanFi, the withdraw wallet burns fSWAN and returns SWAN to you.

5.Does this affect other users? No, since both totalPooledSwan and totalShares decrease, the balance of other users remains unchanged.