In accordance with YIP-77, Yearn will be launching a new staking system for yPRISMA this Thursday.

What you need to know

The current yPRISMA staking contract will be deprecated this Thursday May 16th at 00:00 UTC.

To continue earning staking yield, all yPRISMA stakers are required to migrate.

The optimal migration period lasts for one full week beginning this Thursday May 16th at 00:00 UTC

Users who migrate during this period will not lose any yield.

The following two migration options are available.

Deposit into the new yPRISMA Yearn vault (yvyPRISMA)

Direct-stake into the new Yearn Boosted Staker (YBS)

The choice of which option to use is entirely up to each user's preference. Read on below for helpful information on both.

Option 1: Farm via yPRISMA vault (yvyPRISMA)

Like any Yearn vault, this option is straight-forward and entirely passive. Simply deposit into the vault, and allow the strategy to earn and compound yield for you.

Behind the scenes, this vault/strategy is farming the same YBS staker that direct-stakers are farming.

This option is best for users who:

Want to grow their yPRISMA position

Are gas cost sensitive (Yearn subsidizes gas to perform farming and compounding activies)

Option 2: Farm YBS directly

The new YearnBoostedStaker (YBS) staking system is designed to incentivize long-term stakers by granting them higher rewards. More information about the innovative mechanics can be found in the docs.

This option is best for users who:

Want to earn rewards in stablecoins

Don't mind extra gas costs associated with staking and claiming

Expect to be long-term ecosystem participants (allowing them to beat the prevailing market reward rate)

Rewards are issued as Yearn vault wrapped stablecoins, yvmkUSD-A.

For direct stakers, rewards are no longer "streaming". Instead, rewards will be "trailing", meaning past week's rewards will become claimable as a lump sum at the start of the following week.

Users can claim rewards at any time. Claims are never lost if no claim is made.

For security purposes, the rewards contract is designed to ignore staked amounts in their first week. I.e. Amounts that that have not yet reached a level of 1x boost.

As a result, after launch, no users will have the minimum 1x boost required for rewards claim eligibility until May 23rd.

The rewards that have been accumulating for 2 weeks will become claimable at that time to users who migrated during migration week (before Thursday May 23rd at 00:00 UTC).

Note: Users who migrated after the migration period will miss out on this week of double rewards.

YBS Example

Alice, Bob and Charlie each have 100,000 yPRISMA staked in the old contract

Week 0: Migration Week (No Rewards)

May 16th: Migration week begins, rewards stop streaming to the old contract

May 17th: Alice unstakes her 100,000 yPRISMA and stakes it in the new YBS contract, and starts with a 0x boost.

May 22nd: Bob unstakes his 100,000 yPRISMA and stakes it in the new YBS contract, and starts with a 0x boost.

Week 1: Double Rewards Week

May 23rd: A new week begins - Alice and Bob's yPRISMA moves up to 1x boost

May 24th: Charlie buys 100,000 yPRISMA and stakes it in the new YBS contract, and starts with a 0x boost.

Week 2: Standard Rewards Week

A new week begins and the double rewards (4,000 yvmkUSD) from the previous week are now claimable - Alice and Bob now have a 1.5x boost, Charlie has a 1x boost

May 31st: Alice and Bob both claim 2,000 yvmkUSD rewards (from their 100,000 staked yPRISMA at 1x boost during the previous week) but Charlie has nothing to claim as his stake has not yet experienced the minimum 1x boost needed to earn rewards.

Week 3: Standard Rewards Week

June 6th: A new week begins and the standard rewards (2,000 yvmkUSD) from the previous week are now claimable - Alice and Bob now have a 2x boost, Charlie has a 1.5x boost

June 7th: Alice and Bob both claim 750 yvmkUSD rewards (from their 100,000 staked yPRISMA at 1x boost during the previous week) and Charlie claims 500 yvmkUSD rewards (as he was on 1x boost in the previous week)

Source : Medium / May 7, 2024