What are they
Each Pool is its own staking contract. These contracts allow investors to deposit tokens as a stake and earn reward tokens in return over time.
There are two parts to every Pool, staking and rewards. GYSR v2 is built with a modular architecture that separates these two concepts to add more flexibility and make future development more efficient.
Each Pool will have a Staking Module and a Rewards Module associated with it. During the configuration of a new Pool, different modules can be attached and different mechanics can be specified.
An example of this is Geysers vs. Fountains. Each is defined by a distinct Reward Module.
This architecture means that as GYSR develops new methods for staking or rewarding, they will simply be built as new modules that can be added during configuration.
Geysers are competitive Pools. All investors accrue “share-seconds” that correspond to how many tokens they’ve staked and the length of time they’re staked for. An investor’s rewards are proportional to their share-seconds against the share-seconds of the entire pool.
In a Geyser, $GYSR can be spent during the unstake process to provide a multiplier on a user’s share-seconds. This increases your portion of the pool at the expense of others. This creates a gamified experience for investors where they'll stay deeply engaged with the staking process.
As an example, if you have accrued 100 shares seconds and the total pool has 500 share seconds, a 2x multiplier would adjust those values to 200 / 600, giving you 33% of the pool instead of 20% (100 / 500).
In addition, Geysers have an optional time-based multiplier. A Geyser can offer investors a multiplier based on how long they leave their assets staked. Every stake an investor makes has its own unique multiplier and Geysers prioritize unstaking the shortest stakes first.
Fountains are friendly Pools. They enable you to stake without your accrued rewards being affected by other investor interactions. All investors are accruing rewards every second. These are a great fit for projects that want a passive staking experience for their investors.
When another investor stakes, the rate of rewards from that point forward is adjusted down to split future rewards across the increased pool.
In a Fountain, $GYSR can be spent during the stake process to provide a multiplier on your staked amount. This increases your effective stake and the rate at which you earn rewards.
As an example, imagine there are 400 tokens staked in the pool. If you stake 100 tokens and apply $GYSR to receive a 2x multiplier, instead of earning 100 / 500 (20%) of future rewards, you will earn 200 / 600 (33%) of future rewards.
In addition, Fountains offer an optional time-based penalty for withdrawing rewards early. Projects launching Fountains can configure these Pools to withhold a percentage of the rewards if an investor unstakes earlier than intended.
An example would be if a project decided they wanted to incentivize 90 days of staking, they could set up a 50% penalty at the start. If an investor unstaked after 45 days, they would be halfway through the penalty period. Halfway between 50% and 100% is 75% so the investor would only receive 75% of their rewards. The remaining 25% would be redistributed to other stakers.