How it works
Explanation of how the NuCypher Worker Pool functions
Token: Nucypher (NU) Worker Requirement: 15,000 NU Pool Network: xDai Chain Pool Proportions: 1 NU = 1 Share Pool Rewards: NU, ION Pool Reward Rate: 100% — 160% APY Reward Distribution: Proportional Minimum Stake: 500 NU Collateral: Non-custodial Peerion Commission: 10% of rewards Operational Overhead: Subsidized By Peerion (Monthly server costs & maintenance time)
Layer 2 The Peerion NuCypher Worker Pool is secured and powered by DAOhaus Technology. DAOhaus is a decentralized governance platform which offers an easy-to-use interface for interacting with smart contracts across multiple blockchain networks.
The Worker Pool, governed by a DAO, will act as a hub for substake pools, also known as sub-DAOs. Each substake pool will autonomously manage a 15,000 NU stake. Each substake pool is governed by its own DAO and enables the public to pool NU in order to co-own a NuCypher Worker, vote on asset allocation, and collect proportional rewards. By staking a minimum amount of 300 NU in a substake pool, a 1:1 NU pool share is received. Pool shares gives the holder proportional voting weight and reward split.
Initially there will be one substake pool tied to the Peerion NuCypher Worker DAO. Each substake pool, when generated, will deploy a special smart contract that acts as a signer for that pool in the NuCypher Worker DAO. This contract essentially enables a vote in the substake sub-DAO to dictate what happens in the NuCypher Worker DAO. As more substake pools are added, control over the Peerion NuCypher Worker DAO will progressively decentralize. The Peerion <> NuCypher initiative has been structured this way in order to keep each substake and their stakers organized and autonomous.
All substakes will maintain the same staking settings and amounts in order to keep reward splits even amongst all substake pools. All staking rewards will go directly into the NuCypher Worker DAO Vault and will be split and distributed to the substake pools on a monthly basis.
While staked in the Pool, Shareholders also farm Peerion’s ION Tokens. Shareholders can stake the farmed ION back into the Peerion DAO for governance power within the Peerion ecosystem and also additional reward claim. Learn more
1. When NU is staked in one of the Peerion NuCypher Worker DAO substake pools, a 1:1 NU Pool Share is received and the NU is added to the substake pool vault.
2. Until the required 15,000 NU has been pooled in a substake pool, the underlying NU is non-custodial and can be withdrawn at any time by burning shares.
3. Once 15,000 NU have been successfully pooled, the substake pool will stake the NU in the NuCypher Worker DAO.
4. After the 15,000 NU substake is in the NuCypher Worker DAO, it is then transferred cross-chain into a mainnet Gnosis Safe which is controlled by the NuCypher Worker DAO on xDai.
5. With the 15,000 NU in the Gnosis Safe on mainnet, the NU will then be staked and bonded to the NuCypher Worker.
6. This process is repeated for each new substake added to the Peerion NuCypher Worker DAO ecosystem.
7. The rewards collected from the Worker operations will be added into the Gnosis Safe on mainnet and then transferred cross-chain back into the Peerion NuCypher Worker DAO on xDai, where the rewards will be split evenly among the substake sub-DAOs.
8. And finally, once the rewards are in each substake sub-DAO pool, they will be proportionally airdropped directly into member wallets.
A. All transactions, stakes, rewards, and votes can be audited on chain.
B. Nothing can be removed from the pool vaults without consensus approval by the members.
C. All NU that has been pooled in the Peerion NuCypher Worker DAO will be locked. Although, a signal can be made by any member to request a buy-out (the buy-out process is explained below).
D. It is a 90/10 reward split for the pools hosted by Peerion. 90% going to all the members who stake and 10% going to Peerion as incentive to maintain the worker and pay for the overhead costs (servers, transfers, maintenance time etc).
E. All members maintain ownership of the full amount of NU originally staked in the pool. Peerion only receives 10% of the rewards and voting rights.
F. All rewards collected by the co-owned worker will be deposited into the DAO vault. Reward allocation is then decided by the DAO.
These allocations can include:
- Proportional airdrops
- Liquidity initiatives
- Member buyouts
- Save for another substake
Buy-out Process A buy-out includes the initial NU that was added into the Pool by the Shareholder when they joined, and a proportional reward claim to anything in the substake pool vault. There are 4 steps to the buy-out process and a mechanism in place to handle it effectively.
Step 1. A member creates a buy-out request signal
Step 2. The other members approve the buy-out request
Step 3. The buy-out amount is sent to the requesting member
Step 4. The requesting member then burns their shares and receives their portion of any substake pool vault rewards as they exit.
The buy-out amount can either be saved up by the substake pool or be handled via a public swap (a new member joins to handle the buy-out).