# PARTY Yield

There are 2 ways to earn yield with $PARTY.

### 1. Hold Party Liquid

By holding PARTY liquid, PARTY holders can earn real yield in the form of HEX. The Pool Party platform collects a flat rate of .5% of the HEX staked through Pool Party which is equally distributed every 2 weeks to liquid PARTY holders. In addition to the real yield earnings of HEX, PARTY holders will also earn liquidity pool tokens distributed from the Pool Party Liquidity Fund (discussed in further detail in the Pool Party Liquidity Fund section).

### 2. Stake PARTY

PARTY stakers are incentivized to delay gratification, support the price of PARTY, and boost HEX rewards.

Staked PARTY is removed from the liquid PARTY reward snapshots until the stake ends, increasing the HEX earnings per PARTY token held liquid.

### Party Staking Rules

Stake PARTY to earn PARTY.

Longer pays MUCH better.

PARTY is burnt when staked and then the principal and yield are minted into the stakers wallet when the stake ends.

There is no early-end staking. Staking PARTY is a serious commitment.

There is no penalty for ending your stake late.

Stake from a set number of durations:

15 days, 30 days, 90 days, 120 days, 270 days, 365 days, and any 365 day increment up to 100 years.

### PARTY Staking Calculator

### Stake Yield Equation

Stake yield is deterministic - you can calculate your stake end-value as a function of days staked, d, and stake principal, P.

Where, r is the compound interest rate for the stake. The minimum rate is roughly 2.356% and the maximum rate is roughly 4.713%. Longer stakes get a higher rate which gets compounded over a larger number of years.

The maximum possible rate, r_max was calculated such that a 100 year stake compounding at the rate r_max would be worth 100X the principal at stake maturity. The r_min is set such that it is halway between r_max and 1.

All together, the stake end value can be calculated using the following formula:

Even further simplified:

The PARTY stake yield is the sole source of PARTY inflation. The maximum possible inflation is 4.71% per year, which would occur if 100% of the PARTY supply was staked for 100 years. The inflation is only realized when the stakes end, so the inflation that the PARTY economy experiences year on year is much lower.

The above equation was used to generate the yield scalar values for the allowed staking durations which was turned into a merkle tree. The Merkle Root is stored in the contract and when a user stakes their PARTY they pass a merkle proof, the number of days, and a yield scalar into the stakeParty function. This information is checked against the Merkle Root and if valid, the users may begin their stake.

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