Locks are officially live.
Locks and boosts are now available on Kalmy.APP. That is a big and important update for the future of our ecosystem.
Early birds been already active, here are some quick numbers:
• ~44.000 KALM have been locked on BSC for an average of 1.2 years.
• ~22.000 KALM have been locked on Avalanche for an average of 1.8 years.
• ~22.600 KALM have been locked on Fantom for an average of 2.3 years.
So, even before this blog was published, a total of ~88.600 KALM had been locked! Most active users already enjoy the boosted APY.
Let's take a look at how the KALM token's new utility works and how it will interact with our current and future products and ecosystem.
But first and foremost...
What exactly is locking for KALM?
The most recent mechanic we've added to Kalmy.APP is locking, which allows you to lock your KALM for a period ranging from one week to 4 years in order to increase your APYs across all Kalmy.APP products.
The new utility of the KALM token allows for efficient reward distribution, with KALM holders who choose to lock their tokens being greatly rewarded when using Kalmy.APP.
If you're familiar with the Curve protocol, you should already be aware of how the locking mechanism affects the APYs of your rewards, but one significant difference is that on Kalmar, you can also stake your KALM, but more on that later in this blog.
How to lock your KALM?
1) Go to Lock tab on Kalmy.APP
2) From here, in the bottom window just enter the amount of KALM you want to lock, then select a lock period.
We tried to make it less complicated than Curve, so it's as simple as that. The KALM will be released in the upper part of the page.
5) Important Notice
Understanding how a product works before deciding to use it is critical, especially in DeFi with so many moving parts, so we strongly advise reading this section.
The most significant difference between our locking mechanism and Curve's is that we also offer the option to stake your KALM for more KALM, which is distinct from locking but rather interacts with it.
Why is it made this way? Why can't I get yields just on my locks?
Kalmy.APP is a DeFi hub that houses multiple different products, with more to come in the future. This means that a part of Kalmy.APP users might or might not be interested in certain products.
For example, some of you may enjoy the leveraged yield farming product, while others use Kalmy.APP to aggregate their swaps. But some just want to invest in KALM for long term, so we decided to change Curve contract and add native staking.
If the KALM for KALM pool is your primary source of KALM rewards and you intend to keep it that way for a long term, you are interested in keeping track of how much KALM you're locking.
When locking you increase your ongoing rewards, but you do not earn KALM from the locking contract itself, so locking 100% of your KALM but not farming on the platform will not earn you any rewards.
This way we were able to proceed with a) no lock staking b) add value to long term stakers c) align interests of using Kalmy.APP and holding KALM at the same time.
So finally, what are your options?
Simple! You can keep staking without locking for the base APY or you can lock and access the perks. To enjoy increased rewards, you will only need to lock a portion of your KALM tokens, keeping the rest in the staking pool.
How do you know which option is best for you?
We've added a lock boosting calculator directly to the locking page so you can figure out which option is best for you.
How the calculation works:
The locking protocol is based on a simple factor, the user’s veKALM amount, which at core is influenced by the amount of KALM locked and the locking period (1 KALM locked for 208 weeks lends you 208 veKALM).
Behind the scenes, the locking contract is a staking contract with 2 conditions: to lock your KALM and to yield farm in the pools added to the contract. So, once we add lending or any type of farming, your veKALM will be applied to those as well.
For now, in order to double your KALM staking APR, you will need to lock ~24,000 KALM tokens for 4 years (being the shareholder of 50% of all locked KALM).
As mentioned, the locking mechanism currently only affects the rewards you receive in the KALM for KALM pool.
The boosting will be applied to the following ASAP:
• Yield farming with leverage
• LP staking pools
• Future products
We're working to make the locking mechanism a central feature of Kalmy.APP. The full scale of this update is to be meaningful once the locked KALM balance is applied to all the DeFi and (hint hint) NFT products.
Yes, Kalmy is getting many MetaWaifus soon. Prepare your veKALMs.
Yours, Mark and Ri.