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.

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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.

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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

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• Deduction Percentage: 50% of the rewards generated by the withdrawn amount will be deducted.

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Examples

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• Withdrawn SOL: 10 SOL (10% of 100 SOL)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

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• Withdrawn SOL: 10 SOL (20% of 50 SOL)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

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• Withdrawn SOL: 10 SOL (50% of 20 SOL)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