INITIAL POOL STAKE OFFERINGS IN CARDANO: Genius Yield

by THE.ONE.OR₳CLE

This article is a subsection of a larger article “INITIAL POOL STAKE OFFERING IN CARDANO: a critical overview”

Disclaimers

1. This is not financial advice. I have no training whatsoever in the finance sector and I am in no way or capacity a licensed financial advisor.

Genius Yield — reviewed by Marvin Bertin

This ISPO launched smoothly, and I have very little to comment about it. That shows that it was prepared carefully, setting a good example for other projects. The team provided all the necessary details to its delegators in a timely manner and opting for a design with simplistic features, there isn’t a lot of room for mistakes.

The idea of a shared prize pool with the different multipliers is quite interesting. Even though it makes bonuses hard to predict, this feature rewards commitment as a function of time delegated to the ISPO, instead of the usual approaches based on the amount of stake delegated. This treats different sized wallets equally in the allocation of the loyalty rewards, i.e., it recognizes an equal effort in the commitment of the delegations, whether the stakes are big or small. This is an elegant take on how to reward long-term delegators, even though it is vulnerable to farming by wallet splitting.

The team had issues recently with one of their staking pools (GENS4), which stopped producing blocks on Epoch 315, but acted quickly and is now asking the participants to move their delegations to the other ISPO pools. Taking on responsibility for the mishap, the team distributed rewards anyway. Read about it here. The rewards dashboard was added a few epochs ago, in addition to the overly simple rewards calculator. Delegators can now see their accrued rewards, even though there is still no epoch breakdown.

Figure 11. Percentage of total supply earned per epoch with 1M ADA staked. The bonuses are not included here because the pool prize will be split among the eligible delegators in a tiered system with 1x, 2x or 3x multipliers. As such it is not yet possible to determine the bonuses.

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