Aleatory.Finance can be seen as a project similar to ORB and CAPY, where the broken mechanics have been fixed. Specifically, be observed two major issues:
- First in first out, where the first user to stake was ensured to be the first to exit and rake huge gains.
- External actors manipulating the rewards by interacting directly with the liquidity pool.
As such, Aleatory introduces two major changes — direct ETH staking and withdrawal, without an additional token issuance, and randomized exit times. The three major components are described below.
A user that wants to take part in this experiment will stake ETH by interacting with the dApp’s smart contract (e.g., by using the aleatory.finance website). We acknowledge that users joining early take a higher risk, thus the game mechanics will provide them with a higher reward when the time comes (see explanation under reward extraction).
Upon staking, a random function will determine the time at which the user may withdraw his winnings. This randomization is performed on EACH staking event; and in order to prevent abuse, requires at least 0.01 ETH staked.
We acknowledge that the success of the Aleatory experiment is based on the amount of users taking part in the experiment. As such, we introduce a referral system. By referring users that join Aleatory, you reduce the withdrawal timelock.
Each 1 ETH staked by your referrals will reduce your exit time by 1 hour!
Reward extraction is very simple. The website will present the time at which you may withdraw. Once this time comes, the withdraw button will automatically appear.
The amount of reward each user receives is determined by the risk the user took, the total risk in the system, and the amount of ETH staked.
risk(user) = ETH staked * time staked
Each staking event will increase the total risk the user took. The risk decreases linearly over time, from an initial 4x multiplier down to 1x.
the total risk, is the combined risk taken by all the users
Finally, the amount of ETH each user can withdraw
reward(user) = (total eth staked * risk(user)) / total risk