Pool 1 and Pool 2

What are Pool 1 and Pool 2?

Pool 1 and Pool 2 are single-sided staking Pools within the Pool Party cryptocurrency game, which facilitate a Cournot-style competition among staked tokens. This is achieved by allowing participants to stake their $PARTY tokens in either Pool 1 or Pool 2, with the losing Pool paying out 10% of its tokens to the winning Pool each day. Winnings are distributed proportionally to the size of each participant's stake and remain staked until the user decides to withdraw.


There is a 1% fee to stake in Pool 1 or Pool 2. Additionally, another 1% is assessed when unstaking from Pool 1 or Pool 2. During the locked phase of each epoch, players cannot unstake from Pool 1 or Pool 2.
However, users can hop their entire staked balance from one pool to another with variable fees.
During the locked phase, players can hop their staked tokens from one Pool to another for a 1% fee. During the unlocked phase, pool hopping carries no fees.

Win Percentage

The win percentage for each Pool is determined by a risk-neutral pricing methodology grounded in the theory of martingale systems. Specifically, the win percentage is a function of the ratio of tokens staked between the two Pools. Key takeaways from this design feature include the fact that the larger Pool always has a higher win percentage than the smaller Pool, and the smaller Pool can potentially earn more tokens if it wins than the larger Pool.


Finally, each Pool offers a variable APR, which is continuously recalculated based on the total number of tokens staked in the other Pool. Specifically, the APR for Pool A is determined by 0.1 times the total number of tokens staked in Pool B, multiplied by 365, while the APR for Pool B is determined in a similar fashion using the total number of tokens staked in Pool A.


In summary, Pool 1 and Pool 2 are designed to incentivize participants to stake their tokens and engage in a competitive staking environment, with the ultimate goal of creating a deflationary token with high liquidity. The use of a Cournot-style competition and dynamic APRs serve to promote efficient resource allocation and provide participants with a fair chance at earning rewards.
Last modified 7mo ago