Chi Protocol Documentation
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  • Introduction to Chi Protocol
    • What is Chi Protocol?
    • About
    • Importance of USC
    • Basic Features
  • Concepts
    • Summary
    • Dual Stability Mechanism (DSM)
      • DSM Scenario Analysis
    • Sustainable Reward Sources
      • Token Boost
    • Collateral Risk Management
    • Fees
    • Reserve Fund
    • Risks
      • Bad Debt Risk
      • Collateral Risk
      • Third Party Risk
      • Smart Contract Risk
  • USC
    • Mints and Redemptions
    • Rewards Generation & Distribution
    • Staking USC
      • stUSC
      • wstUSC
    • Liquidity Provision in USC
  • CHI
    • Understanding CHI & Use Cases
    • Liquidity Provision in CHI
    • veCHI & Governance
    • Tokenomics
  • Resources
    • How to Mint and Stake USC
    • Security
    • Technical Resources
    • Smart Contract Addresses
    • APR Formulas
    • Media Kit
    • FAQs
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  • What is Boosting?
  • What is the Boost Multiplier and How is it Computed?
  1. Concepts
  2. Sustainable Reward Sources

Token Boost

Boosting Tokens - Multiplying Rewards

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Last updated 7 months ago

What is Boosting?

In addition to staking tokens, users have the option to boost them to earn additional rewards paid in CHI. When users boost their LP tokens, they are essentially locking their position for a set period. The concept is straightforward: the longer the selected boost period, the greater the reward multiplier.

Currently, the available boosting contracts include the following options:

  • Boosted wstUSC

  • Boosted Staked CHI/ETH LP and USC/ETH LP

It's important to highlight that users continue to receive the underlying staking rewards from their positions, along with the additional CHI incentives.

For example, when boosting wstUSC, users still earn the base USC rewards from staking, and on top of that, they also receive extra CHI incentives from boosting.

What is the Boost Multiplier and How is it Computed?

The boost time multiplier determines the increase in the user's extra CHI incentives. The longer the boost period and the larger the amount of tokens boosted relative to the total, the greater the boost on the CHI rewards.

All time periods are measured in weeks, and the time parameters are as follows:

  • Minimum Boost Time: 1 week

  • Maximum Boost Time: 1 year

For example, if a user boosts their tokens for half a year, the time multiplier component is calculated as follows:

  • Boost Period: 26 weeks (1/2 of a year)

  • Time Boost: (26/ 52) * 1x = 0.5x

This means the user's boost multiplier will be 0.5x for this period ( + 50% extra incentives).

Boosting Tokens