Polylastic features a two-tier staking model to reward participation. Stakers can delegate their stake to any project, signaling their support and increasing its weight. Through this design, POLX captures innovation, community sentiment and the pulse of the elastic finance space.
POLX - Direct token staking
POLX LP Tokens - Liquidity providers can stake their LP tokens and will be rewarded appropriately for their contributions to index health.
Through staking tokens, a project, or their community designates POLX tokens, to increase their weight. A larger weight suggests a stronger presence in the space in which the aggregator is designed to track.
In order to determine their weight, supporters of this token must begin staking Polylastic for a pre-determined period. At the end of this period, we will then assess their weight by the number of tokens staked vs. the other projects.
Normally, market cap would be the sole determinant of weight, however, we will deploy an additional measure to favor projects with strong community followings hence the “quadratic” influence.