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BELT Single Staking
This single staking has been designed to give the most benefit to investors and holders alike while ensuring the longevity and sustainability of the protocol and the vault itself.
The BELT single staking vault is the first step of many into adding the massive value of the platform directly back to the BELT token and BELT token holders.
BELT, as the governance and incentivization token of the platform, has been very powerful in growing Belt Finance to host some of the largest TVLs of any platform on both BSC and HECO Chain, cumulatively more than $1.4 Billion. However, the BELT token has not really reflected the strength and heft of the platform. The addition of this single staking vault brings BELT closer to the center of the platform.
An additional portion of the base yield from our multi-strategy vaults will be used to buyback BELT tokens on the market and then distribute them to holders who stake in this new vault. This has the effect of strengthening the direct link of the BELT token to the success of the platform as the buyback effect and subsequent staking APY will increase with more TVL and with a higher base yield from additional strategies and optimization. It will also give an important place for supporters to earn without worrying about impermanent loss.
Deposits in this new vault will be auto-compounded. This means that users will not have to worry about harvesting and depositing into the vault manually, and as this vault will compound multiple times a day, the effect on APY will make this the best place to store your BELT.
Deposits will also have a 7 day lockup period. This lockup period will reset to 7 days with every deposit.
How exactly is the token economy changing?
Currently, an important part of our deflationary mechanisms is the 8% of base yield from strategy protocols used to buyback and burn BELT (buy at market price and then send to the burn address).
Now, in addition to this 8%, an additional 4% of base yield from strategy protocols will be used to buyback BELT at market prices and distribute them to the BELT single staking vault. This additional buy pressure will aid in stabilizing BELT prices.
With this update, this is only on BSC, but will be implemented on other chains BELT operates on in the near future.