Chatter Finance

Profit Distribution

Stablecoin Distribution

Stablecoin distribution will be the main way in which the treasury distributes its profits. The distribution will happen monthly and based on sCHRF holdings.

Reward Sniping

Since stablecoin distributions will be done monthly or a cycle decided by the community, this provides an opportunity for users/bots to buy tokens and stake just before Rebase cycle and unstake and sell just after receiving the rewards. This basically would become a systemic loophole in the rewards distribution and adversely impacts long-term stakers. To deal with reward sniping we are implementing sCHRF weighted time-averaged stablecoin distribution.

Reward Calculation

The total rewards for a user in a cycle are calculated by the following equation:
L is the length of the cycle. tavg is the average staking time per cycle and is calculated/updated as the following.