NPT Protocol Token and Staking

NPT tokens are primarily used for staking. Anyone who stakes the NPT token will earn a pro-rata share of staking rewards.

Head over to https://neptuneprotocol.xyz/earn to get started

The protocol, and in turn NPT token holders are rewarded when:

• A vault is opened

• A vault is liquidated

• A vault is redeemed

How to earn NPT

There are two primary ways to earn NPT tokens:

• Depositing USDN in the stability pool. The formula for the total amount of NPT rewards released is the following:

f(x) = 2,000,000 * 0.5^(x/365) / (365/log(2)), where x is the time in days. This can be visualized here.

Effectively, NPT token incentives are significant at the initiation of the protocol, but will gradually decrease over time. The more USDN you deposit in the stability pool and the longer the USDN is deposited, the more NPT you are rewarded with.

Instead of manually halving the emission rate every year, NPT rewards are given out at an exponentially decreasing rate, halving every year.

• Stake NPT tokens on our platform to collect a percentage from platform borrowings, redemptions and liquidations .