Time-Locked Yield Boosts
duration-based reward amplification
Time-Locked Yield Boosts are reward mechanisms that increase a userÔÇÖs return on staked assets based on how long they commit their tokens to the protocol. The longer the lock duration, the higher the reward multiplier or APY offered. This model aligns with loyalty-based tokenomics by reducing token velocity, increasing protocol stability, and incentivizing users to delay liquidity for amplified returns.
Use Case: A DeFi staking pool offers a base APY of 8%. Users who lock their tokens for 30 days receive 1.25x rewards, 90 days unlock 1.75x, and 180 days earn 2.25x yield. The boosted yield only applies if the full term is completed without early withdrawal.
Key Concepts:
- Lock Duration Tiers ÔÇö Rewards increase with longer lock commitments.
- Penalty for Early Exit ÔÇö Breaking the lock period results in lost multipliers or fees.
- Capital Commitment ÔÇö Encourages users to stake for strategic timelines.
- Emission Efficiency ÔÇö Optimizes reward distribution to loyal participants.
Summary: Time-Locked Yield Boosts reward patience and trust in a protocol. By linking yield to duration, they stabilize token economies, reward conviction, and create more predictable capital flows within staking ecosystems.
| Lock Duration | Base APY | Boosted APY |
|---|---|---|
| No Lock | 8% | 8% |
| 30 Days | 8% | 10% (1.25x) |
| 90 Days | 8% | 14% (1.75x) |
| 180 Days | 8% | 18% (2.25x) |