Rewards

GMX Rewards provide benefits for long term users of the protocol, these rewards come in the form of Escrowed GMX and Multiplier Points.

Escrowed AKU

Escrowed AKU (esAKU) can be used in two ways:

• Staked for rewards similar to regular AKU tokens

• Vested to become actual AKU tokens over a period of one year

Each staked Escrowed AKU token will earn the same amount of Escrowed AKU and MATIC rewards as a regular AKU token.

Note that Escrowed AKU (esAKU) is not meant to be transferrable.

Vesting

Escrowed AKU (esAKU) tokens can be converted into AKU tokens through vesting, this can be accessed on the Earn page.

When vesting is initiated, the average amount of AKU or ALP tokens that was used to earn the esAKU rewards will be reserved.

For example, if you staked 1000 AKU and earned 100 esAKU tokens, then to vest 100 esAKU tokens, 1000 AKU tokens will be reserved. To vest 50 esAKU, 500 AKU tokens will be reserved. Note that this is an example and the actual ratio depends on the average staked amount and rewards earned for your account.

esAKU tokens that have been unstaked and deposited for vesting will not earn rewards. Staked tokens that are reserved for vesting will continue to earn rewards.

After initiating vesting, the esAKU tokens will be converted into AKU every second and will fully vest over 365 days. esAKU tokens that have been converted into AKU are claimable at anytime.

If a user sells AKU or ALP tokens and would like to vest their esAKU rewards later on, they would need to re-buy the AKU or ALP tokens.

AKU, esAKU and Multiplier Points can be used interchangeably for the required reserve amount.

Depositing into the vesting vault while existing vesting is ongoing is supported.

Tokens that are reserved for vesting cannot be unstaked or sold. To unreserve the tokens, use the "Withdraw" button on the Earn page. Partial withdrawals are not supported, so withdrawing will withdraw and unreserve all tokens as well as pause vesting. Upon withdrawal, esAKU tokens that had been vested into AKU will remain as AKU tokens.

Multiplier Points

Multiplier Points reward long term holders without inflation.

When you stake AKU, you receive Multiplier Points every second at a fixed rate of 100% APR. 1000 AKU staked for one year would earn 1000 Multiplier Points.

Multiplier points can be staked for fee rewards, each staked multiplier point will earn MATIC at the same rate as a regular AKU token.

When AKU or Escrowed AKU tokens are unstaked, the proportional amount of Multiplier Points are burnt. For example, if 1000 AKU is staked and 500 Multiplier Points have been earned so far, then unstaking 300 AKU would burn 150 (300 / 1000 * 500) Multiplier Points. The burn will apply to the total amount of Multiplier Points which includes both staked and unstaked Multiplier Points.

To transfer staked tokens without burning Multiplier Points, use the "Transfer" button on the Earn page.

The "Boost Percentage" shown on the Earn page shows your individual boost amount from Multiplier Points. For example, if the ETH APR is 10% and you have $10,000 worth of AKU and esAKU, then your rewards would be $1000 annualized, if you have an amount of Multiplier Points equivalent to 20% of your total amount of AKU and Escrowed AKU, your "Boost Percentage" would display as 20%, and you would get an extra $200 of ETH rewards annualized.

The “Boost Percentage” is calculated based on the ratio of Multiplier Points to your total amount of staked AKU:

Boost Percentage = 100 * (Staked Multiplier Points) / (Staked AKU + Staked esAKU).

The max boost percentage is 200%, this means that if you have 1000 AKU tokens, and 2500 Multiplier Points, then a maximum of 2000 Multiplier Points can be staked for a boost of 200%; 500 Multiplier Points would be leftover and cannot be staked, to stake these Multiplier Points additional AKU tokens must be obtained, e.g. if an 100 additional AKU is bought then 200 of these 500 Multiplier Points can be staked after.

Distribution Rate

Escrowed AKU will be distributed to staked AKU and ALP according to the schedule in the latest snapshot vote.

Managing Rewards

The options to manage rewards are on the Earn page.

An explanation of the options:

• Stake Multiplier Points: This will claim and stake your Multiplier Point rewards.

• Claim AKU Rewards: This will claim any pending AKU tokens from esAKU that has been vested and converted to AKU tokens.

• Stake AKU Rewards: This will stake the AKU after it has been claimed.

• Claim esAKU Rewards: This will claim any pending esAKU rewards.

• Stake esAKU Rewards: This will stake the esAKU after it has been claimed.

• Claim WMATIC Rewards: This will claim any pending WMATIC rewards.

• Convert WMATIC to MATIC: This will convert the claimed WMATIC rewards to MATIC.

These options can be accessed through either the "Compound" or "Claim" button on the Earn page.