Unstaking Credit Deduction

The credit deduction mechanism is designed to manage the rewards earned through staked SOL, ensuring fair distribution and reward long term community members. Here's a detailed explanation of how it works.

Accounting Deduction

When you stake SOL (or any other LST on Solayer) in a pool, you earn accrue credits based on the amount and type (bSOL, jitoSOL, INF, mSOL, etc.) of SOL staked. However, if you withdraw your staked SOL before the final epoch, a portion of that will deducted. This mechanism ensures that long-term stakers are rewarded more than those who withdraw early.

Calculation

  1. Base Rate: The base rate for every SOL staked

  2. Time weight: Hourly

  3. Multipliers:

  • Native SOL (significantly higher priority)

  • Basic Liquid Staking Tokens

Deduction Rules

  • Withdraw Amount: If you withdraw a certain percentage of your staked SOL, the credits associated with that percentage of SOL will be subject to deducted.

  • Deduction Percentage: 50% of the rewards generated by the withdrawn amount will be deducted.

Examples

Example 1: Withdrawing 10% of Staked SOL

  • Staked SOL: 100 SOL

  • Withdrawn SOL: 10 SOL (10% of 100 SOL)

  • Credits Earned: 1000 (for simplicity, assume all are native SOL with 4x multiplier applied)

  • Deduction: (10 / 100 * 1000) * 0.5 = 50 credits

So, if you generated 1000 credits on the 10 SOL deposited, 50 credits will be deducted, leaving you with 950 credits.

Example 2: Withdrawing 20% of Staked SOL

  • Staked SOL: 50 SOL

  • Withdrawn SOL: 10 SOL (20% of 50 SOL)

  • Credits Earned: 300 credits (assuming a mix of native SOL and LSTs, with appropriate multipliers)

  • Deduction: (10 / 50 * 300) * 0.5 = 30 credits

In this case, if you generated 300 creditson the 10 SOL deposited, 30 credits will be deducted, leaving you with 270 credits.

Example 3: Withdrawing 50% of Staked SOL

  • Staked SOL: 20 SOL

  • Withdrawn SOL: 10 SOL (50% of 20 SOL)

  • Credits Earned: 600 (assuming native SOL with 4x multiplier)

  • Deduction: (10 / 20 * 600) * 0.5 = 150 credits

Here, if you generated 600 credits on the 10 SOL deposited, 150 credits will be deducted, leaving you with 450 credits.

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