Silo
The Silo is the MelonFarm staking system that helps to maintain the stability and security of the Melon stablecoin. The Silo uses the Seed System to create protocol-native financial incentives that improve MelonFarm long-term stability and Melon liquidity.
Anyone can become a Silo Member by Depositing whitelisted assets in the Silo to earn Seeds and Melons. Deposits are represented as ERC-721 standard tokens which means holders can trade them in any marketplace like OpenSea, Blur, ...
Deposit Whitelist
The Silo will have ever only two whitelisted assets: Melon and Melon-ETH LP. Because our smart contracts are immutable and non-upgrade, no one can add/remove whitelisted assets in the Silo.
Melon holders and other liquidity pools can be incentivized more by our external products in the future.
The Seed System
The Seed system is a novel mechanism that incentives long-term Silo depositors to maintain Melon liquidity via the Seed Growth mathematics sequence.
Tl; DR, The longer you keep your deposit, the more you will earn.
When whitelisted are deposited in Silo, the Farm rewards the Depositor with Seeds and Melons. Seeds can grow in every season whether new Melons are minted or not. These growth Seeds can be planted to increase your deposit position share in the new Melon supply will be minted.
The Initial Seed
Every whitelisted asset has its Initial Seed Amount when it is deposited into Silo for the first time. This amount will be auto-planted after the deposit happens.
Melon
1
Melon-ETH LP
100
The Incentive Seed
Depositors will be receive additional Incentive Seeds if the previous Season's Weather the Sunny. This amount will be calculated as follow:
The Seed Balance (Planted)
Every depositing position has an amount of seeds that presents its share of the newly minted Melon supply. The more planted seeds, the more Melons depositors will earn.
It will increase when:
The first time whitelisted assets were deposited in Silo. It will be auto-planted from Initial Seeds and Incentive Seeds.
The depositor (the owner of the deposit position) triggers the smart contract to plant Growth Seeds.
It will decrease to zero whenever depositors withdraw assets from Silo.
The Growth Seed
Growth Seeds in a depositing position will be increased after every season and calculated by Growth Seed Ratio.
Growth Seed Ratio (GSR)
We use a ratio number that presents how many percentages of Planted Seeds will grow after every season. We call this ratio is "Growth Seed Ratio".
To determine this ratio, we have leveraged the Fibonacci Sequence to design a non-linear incentive model for Silo depositors. Every node in the sequence presents the level of the deposit position. It will have a higher number of increments if the depositing position reaches to that level.
The sequence starts at 1 and ends at 10496 (the maximum value). To archive the ratio value at the next level, depositors need to keep the depositing position in the number of seasons equal to the sum of the two preceding levels.
And the Growth Seed Ratio will be calculated as below:
1
1
1.000091358
2
1
1.000182715
3
1
1.000274073
5
1
1.000456788
8
1
1.000730861
13
1
1.001187648
21
1
1.001918509
34
2
1.003106158
55
3
1.005024667
89
4
1.008130824
144
6
1.013155491
233
10
1.021286315
377
16
1.034441805
610
26
1.05572812
987
42
1.090169925
1597
67
1.145898045
2548
108
1.23606797
4181
175
1.381966015
6765
282
1.618033985
10496
457
2
For example, depositors can grow 1.381966015% their Planted Seeds per season only if they kept their depositing positions at least 4181 seasons ~ 175 days.
Prevent Spam & Manipulation
Bots can spam Melon Silo system by continuity deposit before the season and withdraw right after the season ended. To prevent this, Silo deposits are locked for at least 8 seasons to be withdrawn.
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