esLBR Advanced Vesting

Overview

Users can exit early from their vest for a 25-95% penalty fee or complete the 90-day (three-month) vesting period to receive the full amount.

How to begin vesting esLBR

esLBR must actively vest and reach the 90-day maturity date to receive the full amount.

Exit early for a penalty to receive LBR immediately.

LBR Burn and Stability Fund

All of penalty (esLBR) will be allocated to Bounty Program, which can be purchased in LBR or eUSD at a 40% discount.

Protocol received LBR will be 100% burned.

Protocol received eUSD will be reserved as a part of the protocol's Stability Fund. This Stability Fund serves a critical function in ensuring the stability of the protocol by helping to maintain the peg of eUSD, especially in instances where eUSD is trading above its peg.

Example,

1. Let’s say that a user called Alice earns 1,000 esLBR through mining.

2. Alice chooses to exit early on Day 10, she would face a penalty of 90%, resulting in a deduction of 900 esLBR from her earnings. This means she would receive only 90 LBR (i.e., 900 esLBR * (100% - 90%)) due to her early exit.

3. The forfeited portion of Alice's esLBR, which amounts to 810 esLBR (900 esLBR * 90%), then enters a bounty pool. Here, it can be purchased by other users, like Bob, with either LBR or eUSD at a 40% discount.

4. As a result, Bob can acquire Alice's forfeited 810 esLBR thanks to the 40% discount, by spending only 486 LBR or equivalent eUSD.