DeFi

Karat DeFi Overview

Karat DeFi is a pivotal element of the Karat Galaxy ecosystem, allowing KARAT token holders to engage in decentralized finance activities through staking. By staking their KARAT tokens, users can earn dividends, increase their staking shares, and contribute to the platform's growth. The DeFi update emphasizes flexibility, transparency, and rewarding participation, aligning with Karat Galaxy’s commitment to fair play and true ownership of digital assets.

Key Features of Karat DeFi

Staking KARAT Tokens
- Participation: Every KARAT holder can participate in DeFi by staking their tokens.
- Flexibility: Stakers can unstake any percentage of their tokens at any time, receiving their rewards in either USDT or KARAT.
- No Mandatory Game Accounts: While DeFi participation does not require a game account, players who stake their mined KARAT within the game receive additional staking shares, enhancing their rewards.
Dividend Distribution
- Frequency: Dividends are distributed on a weekly basis.
- Calculation: Dividends are proportional to each staker’s staking shares.
- Source of Dividends: Dividends are generated from Karat Galaxy’s profits and commissions from the official liquidity pool (LP).
Staking Shares
- Definition: Staking shares represent a staker’s proportionate ownership in the DeFi dividends.
- Accumulation: Shares are accumulated based on the amount staked and the duration of staking.

Where the Money Comes From: Dividend Sources

Buyback Mechanism:
- Upon upgrading the Karat Galaxy contract, every buyback operation from the official LP allocates 25% of the bought-back tokens to the DeFi pool. This means that increased game activity directly contributes to higher dividends for stakers.
- Allocation Breakdown:
  - 25% of the team's total equity is allocated to the DeFi pool for dividend distribution.
  - 20% remains as team rewards, supporting ongoing development and operations.
Payout Sources:
- Distributions originate from the revenue generated by Karat Galaxy’s gaming activities and the commissions earned from the official liquidity pool (LP).

Staking Shares Calculation Methodology

Staking and Share Accumulation
- Initial Staking: When a user stakes KARAT tokens, their staking shares increase by an equivalent amount. For example, staking 100 KARAT adds 100 staking shares.
- Game Participation Bonus: Players who stake their mined KARAT tokens within the game receive an additional 100% share match on their staked amount. This incentive encourages active gameplay and staking, rather than merely purchasing KARAT from the liquidity pool.
Interest on Principal
- Daily Interest: The principal amount staked generates 1% interest shares daily. For instance, staking 100 KARAT will accumulate 10 additional shares over 10 days, bringing the total shares to 110.
Distribution
- Proportional Distributions: Weekly dividends are distributed based on each staker’s total staking shares. The more shares a user holds, the higher their dividend payout.
Unstaking Process
- Proportional Reduction: When a user decides to unstake, their shares are reduced proportionally to the amount unstaked.

Example Scenario:
Initial Stake: Alice stakes 100 KARAT, earning 100 staking shares.
Bonus for Game Staking: Alice stakes within the game, receiving an additional 100% match, totaling 200 staking shares.
Interest Accumulation: After 10 days, Alice’s principal generates 10 shares, bringing her total to 210 staking shares.
Unstaking 50%: If Alice decides to unstake 50% of her principal (50 KARAT):
Return: She receives 55 KARAT (50% of 110 KARAT including interest).
Remaining Principal: 50 KARAT.
Share Adjustment: Her total staking shares drop to 105 (50% of 210).
Future Interest: The remaining principal of 50 KARAT continues to generate 0.5 shares per day.

Future Expansion and Enhancements

Multi-Chain Integration
- Seamless Interoperability: AI-driven tools will ensure smooth integration across multiple blockchain networks, expanding accessibility and user base.
Upcoming DeFi Enhancements
- Advanced Financial Instruments: Introduction of AI-driven financial products, including staking mechanisms and yield farming opportunities, to enhance user experience and increase KARAT token utility.
New Game Development
- Diversified Gameplay: Development of additional games within the Karat Galaxy universe to attract diverse player segments and provide more earning avenues.

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Last updated 29 days ago

Karat DeFi Overview

Key Features of Karat DeFi

Staking KARAT Tokens

Participation: Every KARAT holder can participate in DeFi by staking their tokens.
Flexibility: Stakers can unstake any percentage of their tokens at any time, receiving their rewards in either USDT or KARAT.
No Mandatory Game Accounts: While DeFi participation does not require a game account, players who stake their mined KARAT within the game receive additional staking shares, enhancing their rewards.

Dividend Distribution

Frequency: Dividends are distributed on a weekly basis.
Calculation: Dividends are proportional to each staker’s staking shares.
Source of Dividends: Dividends are generated from Karat Galaxy’s profits and commissions from the official liquidity pool (LP).

Staking Shares

Definition: Staking shares represent a staker’s proportionate ownership in the DeFi dividends.
Accumulation: Shares are accumulated based on the amount staked and the duration of staking.

Where the Money Comes From: Dividend Sources

Buyback Mechanism:

Upon upgrading the Karat Galaxy contract, every buyback operation from the official LP allocates 25% of the bought-back tokens to the DeFi pool. This means that increased game activity directly contributes to higher dividends for stakers.
Allocation Breakdown:
- 25% of the team's total equity is allocated to the DeFi pool for dividend distribution.
- 20% remains as team rewards, supporting ongoing development and operations.

Payout Sources:

Distributions originate from the revenue generated by Karat Galaxy’s gaming activities and the commissions earned from the official liquidity pool (LP).

Staking Shares Calculation Methodology

Staking and Share Accumulation

Initial Staking: When a user stakes KARAT tokens, their staking shares increase by an equivalent amount. For example, staking 100 KARAT adds 100 staking shares.
Game Participation Bonus: Players who stake their mined KARAT tokens within the game receive an additional 100% share match on their staked amount. This incentive encourages active gameplay and staking, rather than merely purchasing KARAT from the liquidity pool.

Interest on Principal

Daily Interest: The principal amount staked generates 1% interest shares daily. For instance, staking 100 KARAT will accumulate 10 additional shares over 10 days, bringing the total shares to 110.

Distribution

Proportional Distributions: Weekly dividends are distributed based on each staker’s total staking shares. The more shares a user holds, the higher their dividend payout.

Unstaking Process

Proportional Reduction: When a user decides to unstake, their shares are reduced proportionally to the amount unstaked.

Example Scenario:

Initial Stake: Alice stakes 100 KARAT, earning 100 staking shares.
Bonus for Game Staking: Alice stakes within the game, receiving an additional 100% match, totaling 200 staking shares.
Interest Accumulation: After 10 days, Alice’s principal generates 10 shares, bringing her total to 210 staking shares.
Unstaking 50%: If Alice decides to unstake 50% of her principal (50 KARAT):
- Return: She receives 55 KARAT (50% of 110 KARAT including interest).
- Remaining Principal: 50 KARAT.
- Share Adjustment: Her total staking shares drop to 105 (50% of 210).
- Future Interest: The remaining principal of 50 KARAT continues to generate 0.5 shares per day.

Future Expansion and Enhancements

Multi-Chain Integration

Seamless Interoperability: AI-driven tools will ensure smooth integration across multiple blockchain networks, expanding accessibility and user base.

Upcoming DeFi Enhancements

Advanced Financial Instruments: Introduction of AI-driven financial products, including staking mechanisms and yield farming opportunities, to enhance user experience and increase KARAT token utility.

New Game Development

Diversified Gameplay: Development of additional games within the Karat Galaxy universe to attract diverse player segments and provide more earning avenues.