Original | Odaily Planet Daily ( @OdailyChina )
Author｜Nan Zhi ( @Assassin_Malvo )
On June 10, Huma Finance released the Huma Staking Rewards Proposal, which explained in detail the calculation rules of the Feather points coefficient for Season 1 (the second phase of the staking activity). In the first phase of staking and TGE activities, the annualized rate of return for participating in Huma USDC staking reached more than 100%, which is a rare big profit at a time when staking is declining. So is it worth participating in the second phase of the activity?
In this article, Odaily Planet Daily will collect and calculate data to try to clarify the return expectations of Season 1.
Proposal Details
The original link of the proposal is: https://www.notion.so/huma-fi/Huma-Staking-Rewards-Proposal- 20 eefc 699 c 5 a 80 f 5 bcc 1 e 6 f 010 ccd 135 . The comment period will end on June 17. This article will be calculated based on the current version. The key rules for score calculation include:
LP lock-up period and mode multiples: Different basic multiples are provided according to the LP lock-up period (such as 3 months, 6 months) and mode (Classic or Maxi). The minimum is 1 times of the Classic mode without lock-up, and the maximum is 15 times of the Maxi mode with lock-up of 6 months. (Note: LP here refers to LP deposited in USDC, not the traditional AMM)
Staking multiple: The additional bonus to the LP reward is determined by the ratio of the number of HUMA tokens staked by the user to the total number of LP tokens. When the staked HUMA reaches three times the number of LP tokens, the multiple reaches the upper limit of 2. The official calculation formula is as follows:
OG LP status: Users who participated in Huma Season 0 and currently have a deposit of more than $100 in Huma will receive a fixed bonus of 1.2 times. For users who have transferred assets, they can restore their OG status by recharging their assets before July 1 .
Vanguard Status: Users who stake all of their airdropped tokens before June 15, and users who did not receive an airdrop but staked more than 100,000 HUMA, can receive a 1.2x Vanguard Status bonus when staking for 6 months or more.
Revenue Calculation
According to the official announcement, Season 1 will distribute 2.1% of tokens, but it is not clear what proportion will be distributed to LPs. In the simplest case, assuming that all users use the same staking method and all 2.1% is distributed to LPs, we have the following data:
The current TVL is 56.65 million US dollars, the FDV is 462 million US dollars, and the 2.1% token value is 9.7 million US dollars. Season 1 lasts for 3 months, so the absolute rate of return is 970/5665 = 17.1%, and the equivalent annualized rate of return is 68.4% .
To further distinguish, there are two staking modes: Maxi and Classic, and there are three staking durations, so there are six situations. The current selection of each user is shown in the figure below.
The APR varies depending on the points acquisition coefficient. The most popular Maxi mode with a 6-month lock-up has an APR of 127.06%; the second most popular Classic mode with no lock-up has an APR of 8.47% .
In addition, there are other ways to increase the efficiency of points acquisition, such as OG, Vanguard, and staking HUMA, which can be magnified up to 1.2 × 1.2 × 2 = 2.88 times, but it depends on the game plan of each user, and the exact solution cannot be calculated under this dimension.
In summary, based on the current TVL and unchanged coin price, choosing the Maxi mode of locking up for 6 months in the second phase of Huma Finance airdrop activity is expected to achieve an APR of more than 100%. This is especially beneficial for users who participated in the staking in the first phase and do not perform any operations on their assets and continue to participate in the second phase of the activity.
