🔹User Guide
This is a step-by-step guide to cDFI Community Staking
The 'How it Works' page provides a concise summary of the service operation, this page looks more in detail how to use the service and what to expect.
1. Key Performance Metrics
This form highlights some of the key performance metrics for the cDFI Community Staking service taken directly from Crypto Factor Node Stats:
TVL (Masternodes): Volume of underlying DFI collateral in the Crypto Factory
TVL (cDFI Staking): Volume of overlying cDFI receipt tokens in the Staking Service
cDFI Circulating Supply: Volume of minted cDFI receipt tokens
Active Masternode Count: The number of ENABLED Masternodes in the Crypto Factory
Pending Masternode Resignations: The number of Masternodes awaiting resignation
2. The Crypto Factory Status
The Crypto Factory Status provides an insight into the inner workings of the Intra-layer solution. This window comprises three menus:
Full Nodes
Basic details including current status state
Masternodes
Ordered list of Masternode details including on-chain address links
Action Logs
Masternode: creation and resignation transactions
Transfer Domain: creation and resignation of funds transfer
Minting Queue: payouts from redemption queue, funds transfer for creation
Redemption Queue: payouts from mint queue, funds transfer from resignation
Rewards: Payout to cDFI staking pool
The Crypto Factory Status will evolve into a full data solution, including:
Base Logging: Every Crypto Factor Operation to allow for the user to delve into the complex digital machinery beneath. This will be a data events logger in graphical log format
Enhanced Statistics: The base logging will be refined up into a full status flow including static representations of operational health and key performance metrics
Dynamic Visualisation: We are working with partners to bring the operations of the cDFI Community Staking service to life, each and every event in the operation of the service will be mapped and a matrix will be defined and built to visualise the real-time digital machinery at work. This will be gradually rolled out across the entire Crypto Factor Ecosystem including client integrations
3. Mint cDFI using DFI
This form is the entry point into the cDFI Community Staking Service.
The Pending Creation status shows whether the service is nominal or creating masternodes
Toggle to 'MINT cDFI' for Minting and 'SELL cDFI' for Redemptions
Next Creation Progress shows the current volume of cDFI minted as a 20k batch together with a calculated percentage progress towards this threshold
The Mint queue is fluid and reduces to service first tier redemptions (DFI)
Use the 'MINT cDFI' button after entering your $DFI amount to get started
A confirmation form is presented to ensure you agree with the 0.5% fee charged for conversion
4. Create Vault -> Before you stake for the first time
In the same way as CFR staking a vault is required to facilitate staking.
You will find the APR for staking in the top right corner - this very closely resembles the APR from the underlying Masternodes in the Crypto Factory (minus the 5% NodeOp fee)
You may find the APR for staking is higher than the standard Masternode emission rate. This can be due to not all minted cDFI being used in the staking service. Because all DFI is pushed to MN collateral → Higher than average returns are likely
Once your vault is created you are ready for cDFI Staking
5. Stake cDFI -> After you acquire it from the cDFI Mint
In much the same way as our CFR Staking service, with a vault enabled you can deposit cDFI for DFI rewards, the form shows:
The expected / estimated APR
A toggle to Stake or Withdraw from cDFI Staking (there is no sealed cDFI Staking)
cDFI Wallet Balance
cDFI Staked Balance (use Stake cDFI button to stake your cDFI)
DFI Claimable Rewards (use Claim DFI button to claim your DFI)
6. cDFI Redemptions - Summary
Detailed Redemption Steps:
Pending Resignations: Provides the number of Masternodes currently being resigned, if any
Enter Amount: Input the quantity of cDFI you wish to sell / redeem for DFI
Sell cDFI: Adds your cDFI to the redemption pool, increasing the overall volume in the queue. (DFI is retrieved from the Mint queue as a priority, if available, to speed-up redemption processing)
Progress Bar: Shows the volume of DFI present in the redemption queue (in the event there is no cDFI to transfer from the Mint queue). Resignation occurs once the queue exceeds 20k cDFI or in multiples of 20k for larger volumes, allowing for larger redemptions, as required
Pending Amount: The amount in the redemption pool that belongs to you is displayed as ‘Your DFI Pending’
DFI Transfer: Once redemption DFI is retrieved from the Mint queue or a resignation is complete, the DFI is moved to ‘Your DFI Available’
Claim DFI: You can claim your DFI proportionally based on the total DFI available in the pool
Proportional Redemption Model (PRM):
This model ensures fairness by allowing all users to redeem their DFI proportionally based on the liquidity available from Masternode resignations. This prevents larger sales from monopolising liquidity, ensuring even distribution among all users.
Primary Benefit: The PRM allows all users to redeem their DFI fairly, preventing scenarios where smaller sales are indefinitely delayed by larger, threshold-triggering sales - if the mint queue is exhausted.
7. cDFI Redemptions - Detail
High Level Operation:
The redemption process involves a redemption queue. A queue is used to pool cDFI and trigger Masternode resignations when 20k thresholds are exceeded and where no DFI is available from those who have minted cDFI where the mint queue has not reached the threshold for a new Masternode creation event:
Enter the amount of cDFI to SELL
SELLS cDFI which adds volume to the queue (Redemption Pool)
The amount in the queue that is yours is reflected in the ‘Your DFI Pending’ quantity
Wait until queue exceeds 20k (or multiples of 20k in the case of larger redemption volumes) or expect fluid DFI from the minting process to be immediately available
Redemption status will show whether a resignation is in progress (and the number of nodes undergoing resignation in the case of larger redemption volumes)
The resignation process is an automated procedure to resign a Native Masternode and retrieve the underlying collateral (20k DFI)
When the resignation process is complete the DFI is transferred to ‘Your DFI Available’
This amount is added to any previous unclaimed DFI Available
Claim DFI Available is a proportional function against the number of DFI Available for all
This advanced Proportional Redemption Model function is in place for fairness to allow ALL parties to retrieve their DFI from the liquid staking contract in a proportional way
IMPORTANT: This method should be considered as a balance between the redeeming proportion calculated by pending amount and the availability of DFI from the resignation of Masternodes. Whilst all cDFI are redeemable for DFI, there is no direct claim (batch-db, tx-link or reference); the process is decentral and governed by liquidity availability and ratio.
The primary benefit of this Proportional Redemption Model is to instil fairness to all those wishing to redeem. It prevents cases whereby a user sells a non-threshold exceeding amount and a larger sell triggers and immediately is claimed. i.e. A 20,000 cDFI sell resigns a node, 20,000 is withdrawn and smaller preceding redeemers remain in the ‘queue’ again unable to withdraw.
Basic example without PRM - only two users:
User A: sells 5000 cDFI and expects to redeem 5000 DFI when threshold is met after 15001 more sales
User A: has not triggered a threshold and is waiting (undetermined delay)
User B: sells 20000 cDFI and triggers a Masternode resignation
User B: has triggered a threshold and immediately redeems 20000 DFI
User A: is left with no DFI liquidity - and thus continues to wait
Basic example with PRM - only two users:
User A: sells 5000 cDFI and expects to redeem 5000 DFI when threshold is met after 15001 more sales
User A: has not triggered a threshold and is waiting (an unknown waiting time)
User B: sells 20000 cDFI and triggers a Masternode resignation
User B: has triggered a threshold but can only redeem against the proportion of available DFI released
User A: can redeem against the proportion of the available DFI released and available
User A/B: continue to redeem via the process of even distribution until completion
A further example with PRM - with many users:
User 1->100: sells 1000 cDFI each and expects to redeem 1000 DFI each when next threshold is met
User 1->100: have triggered multiple (5) Masternode resignations
DFI liquidity becomes available in the the redemption pool as 20>40>60>80>100k
User 1-100: can only redeem against the proportion of available DFI released and available
(THIS REDEMPTION MAY START with only 200 DFI of the 1000 DFI THEY EXPECT)
(THIS CORRECTS ITSELF AS THE REDEMPTION POOL IS FILLED)
HOWEVER - User 101: sells 100k cDFI and expects to redeem 100k DFI, however owing to User 1->100 and inline with PRM, User 101 will join the redemption pool having to adhere to the same computation as Users 1->100 and all redeem via the process of even distribution based on PROPORTION PENDING until completion
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