Rewards

The Nebulous Conclave is a core component of the Nebula Finance protocol, providing significant rewards to its members. The Conclave functions on a dual-asset staking model, allowing for the staking of both shares (NSH) and Nebula Cash (NUSD). The rewards structure is dynamic and adjusts based on the action phase the protocol is currently in:

Expansion Phase ($1.10+): During this phase, seigniorage rewards are distributed to stakers and the price returns to peg. Rewards are paid in seigniorage. Therefore, fees are added to collateralization. 20% of the seigniorage is directed to the Stability Pool.

Above-Peg Phase ($1.05-$1.0999): In this phase, no seigniorage rewards are paid. Instead, Buy/Sell/Tx Fees are rewarded to stakers.

Over-Peg Safe Phase ($1.00-$1.0499): During the Over-Peg Safe phase, no seigniorage rewards are paid. Buy/Sell/Tx Fees are rewarded to stakers and used to buy back and burn NSH.

Under-Peg Safe Phase ($0.95-$0.9999): Similar to the Over-Peg Safe phase, no seigniorage rewards are paid. Buy/Sell/Tx Fees are rewarded to stakers and used to buy back and burn NSH.

Below-Peg Phase ($0.90-$0.9499): In this phase, no seigniorage rewards are paid. Instead, Buy/Sell/Tx Fees are used to buy back and burn NSH.

Recovery Phase ($0.8999-): During the recovery phase, bonds are issued with a discount to be redeemed back at $1.03. Buy/Sell/Tx Fees are used to buy back and burn NUSD. Conclave stakers may use rewards to purchase bonds directly at a deeper discount without lock penalty. A 10% non-penalized tax is taken from bonding, which is swapped in the Stability Pool for NSH and rewarded to Conclave stakers. Once NUSD returns to $1.03, the swapped NUSD is used to buy back and burn NSH.

Throughout all phases, stakers can augment their rewards by staking an equal amount of NSH and NUSD, which increases the rewards to a 3:1 basis. Those who also hold a Nebuloid NFT will have their rewards increased further to a 4:1 ratio. The Nebulous Conclave is designed to incentivize and reward active participation in the Nebula Finance ecosystem, contributing to its overall stability and growth.