Position Staking on Atlendis with $MATIC Rewards

On October 6th, 2022, Atlendis Labs announced with Polygon a 132,500 MATIC rewards program launching on the Atlendis protocol, in this article we compiled answers to the most frequently asked questions:

When does the program start?

The liquidity mining program will launch on October 11, 2022 on the Atlendis protocol.

What is the Atlendis MATIC rewards program?

Atlendis lenders receive an NFT reflecting their position upon depositing liquidity in an Atlendis pool. By staking this NFT and locking it over a set period of time in Atlendis’ staking contracts, lenders will receive rewards in $WMATIC token. The staking rewards accumulate with the protocol’s usual rewards – from AAVE, potential liquidity rewards on unused funds, and from the lender's chosen interest rate on borrowed funds – at a rate that varies depending on the lock-up period.

Why $WMATIC, I thought I would earn $MATIC?

$WMATIC, also called Wrapped Matic, is the ERC-20 standardized version of the $MATIC token. It can be unwrapped and swapped for $MATIC at a 1:1 ratio.

What is the scope of the program?

132,500 $WMATIC tokens will be distributed on the Atlendis protocol over a duration initially set at 6 months – distribution rate and program duration are subject to change.

The liquidity mining program is deployed at a pool level, with a specific staking contract being deployed with a set amount of tokens for each pool. This means that new liquidity mining programs can easily be deployed on other pools in the future.

Which pools are in the program’s scope?

At first, Wintermute’s USDC and Parallel Capital’s USDT pools are included in this rewards program, with more incentivized pools coming in the near future. You can look for a “Staking” button on pool cards to see which ones are incentivized with $WMATIC rewards.

Is there a minimum position size to be able to stake it and earn rewards?

There is a minimum of 10 USDC or USDT for a staked position to be eligible.

What is the duration component of the rewards program?

Lenders will have to choose a lock-up period between 15, 30, 45, 60, 75 and 90 days. The longer the lock-up duration, the higher the rewards multiplier for the lender.

The multiplier is set as follows:

15-day lock-up = x1

30-day lock-up = x1.04

45-day lock-up = x1.08

60-day lock-up = x1.12

75-day lock-up = x1.16

90 day lock-up = x1.2

How are rewards calculated?

Staking rewards are a function of the position’s share in the staking pool, the lock-up duration, the multiplier and the emission rate. The multiplier is described above and the emission rate is a set parameter that depends on the total duration of the rewards program.

Can I stake/unstake part of my position?

Lenders can only stake the full amount of their position. It goes the same way when unstaking.

Where can I see the current staking APR and the status of my staking rewards?

The APR for staking a position NFT is displayed on the dedicated staking page that lists all the staking pools. More details about lenders’ rewards and lock-up periods are available on the specific staking pool’s page, and the summary of your rewards is also displayed in “My Dashboard”, on the “staking” tab in the top right corner.

Do I need to unstake my position at the end of the lock-up period?

Lenders must manually unstake their position when the lock-up period ends. They claim in one transaction their position and the generated staking rewards.

Can I unstake my position before the end of the lock-up period?

Yes, lenders can un-stake a position before the conclusion of the lock-up period. However, by doing so, the lender will be forfeiting the rewards that they would otherwise be able to claim at the end of the lock-up period. Lenders’ forfeited rewards are then returned to the staking program’s rewards pool.

Do borrowers get incentive rewards as well?

Borrowers do not earn $WMATIC rewards in this incentivization program.

What is the benefit for the Atlendis protocol?

Borrowers on the protocol benefit from liquidity being available when they need it. By locking their positions in staking pools and increasing their yield, lenders participate in the global health of the protocol, which in turn favors the borrowing activity – like a virtuous circle.

About Atlendis

Atlendis is a decentralized credit protocol that enables transparent lending. There is no idle capital on Atlendis. Lenders can earn high interests on actively loaned out capital and unused capital is placed on a trusted third-party liquidity protocol. Atlendis enables higher returns for liquidity providers and more granular control over their risk profile. Institutional borrowers can obtain flexible and competitive loan terms. Liquidity pools on the Atlendis protocol are similar to revolving lines of credit, giving borrowers flexibility for recurrent and short term liquidity needs. Atlendis enables trusted borrowing and lending, opening a wide range of use cases for borrowers.

Additional Resources

Position Staking on Atlendis, Kickstarting with Polygon $MATIC Rewards Program