Escalating Yields
incentive growth over time
Escalating Yields are dynamic reward structures that increase the longer a user remains staked, committed, or actively engaged within a protocol. Rather than offering static returns, escalating yields are used to reward time-aligned loyalty and discourage early exits. This model is common in DeFi farming, NFT staking, and DAO-based ecosystems, where compounding trust is converted into increasing financial or governance benefits.
Use Case: A liquidity pool offers an initial APY of 10% that automatically increases by 5% every 30 days the user keeps funds stakedÔÇöup to a maximum of 30%. Withdrawing resets the yield back to the base level, reinforcing commitment over rotation.
Key Concepts:
- Time-Based Scaling ÔÇö Yield increases with continued engagement.
- Reset on Exit ÔÇö Unstaking or inactivity resets the reward curve.
- Behavioral Loyalty ÔÇö Rewards users for supporting the protocol long-term.
- Anti-Farming Design ÔÇö Discourages jump-in, jump-out farming tactics.
Summary: Escalating Yields convert time into trust and trust into value. They align tokenomics with retention, strengthen liquidity depth, and promote a healthier Web3 economy by making long-term thinking financially advantageous.
| Staking Duration | Base Yield | Escalated Yield |
|---|---|---|
| 0ÔÇô30 Days | 10% | 10% |
| 31ÔÇô60 Days | 10% | 15% |
| 61ÔÇô90 Days | 10% | 20% |
| 90+ Days | 10% | 30% (Max) |