As PlotX nears the mainnet launch, the team is excited to throw light on the new features which will be part of the upcoming release. Since the launch of the public alpha on August ’20, the PLOT Head community has been instrumental in providing valuable feedback. Thus, in line with the mission of creating a community-first protocol, this feedback has served as the foundation for the mainnet release version.
Leverage & Leverage Multiplier
So, in the current PlotX Alpha, whenever you decide to predict in any market, you need to enter the amount of kETH you wanna play with along with selecting the leverage you’re most comfortable with.
The leverage you select determines your risk factor. 1x leverage implies that, if your prediction happens to be wrong, you’ll lose only 20% of the amount you’re playing with; 5x leverage implies that, if you happen to be wrong you’ll lose 100% of the amount you’re playing with. Leverage of 2x, 3x, and 4x reflects a risk of 40%, 60%, and 80% respectively.
But here, a question arises, “if playing with 0.2 ETH at a 5x leverage means I’d lose the same amount of ETH as when I play with 1 ETH at a 1x leverage, why include this extra step?”
And the answer to this question is “Leverage Multiplier”, that’ll be integrated with PlotX as it launches on the mainnet. The benefit of higher leverage will thus accrue in the form of extra positions.
The formula used to compute Leverage Multiplier is as follows: -
Leverage Multiplier = (1+0.05*(Leverage-1)
So, this essentially means:
With Leverage Multiplier out of the way, let’s look at the second component of making predictions in PlotX…
Staking & Stake Multiplier
Staking is a feature that is not yet live on the Alpha. But when PlotX gets launched on the mainnet, staking will be a pretty amazing feature for users to take advantage of. So, here’s what it is and how it works.
Staking — To encourage play mining, players are incentivized to stake PLOT tokens to earn a multiplier on their positions during the stake period.
How it works — Users can stake (lock) their PLOT tokens within the PlotX staking smart contracts for a minimum 30 days period to boost the number of positions they’ll get in a market, subject to the following conditions: -
- Minimum playing amount of 0.5 ETH or 0.5 ETH equivalent PLOT tokens.
- Staked amount being greater than the playing amount.
The Staking Multiplier helps the player increase their positions and thus be better off than a user who hasn’t staked or staked less. What makes the Staked Multiplier aka Play Mining feature, very useful is that it can be used multiple times in different markets during the course of the stake to gain extra positions and thus extra rewards. Moreover, even if one’s prediction turns out to be wrong, they don’t lose any of the PLOT tokens part of the stake.
A player can only benefit from the stake multiplier once in a single market. Which means if the player has taken a position inclusive of the stake multiplier in an hourly market that is asking for the value of a market pair at 2:00 PM, they will not be able to gain the benefit of the multiplier if they look to take another position in the same market.
The formula used to compute the Staking Multiplier is as follows:
Staking Multiplier = (1+(Staked Amount / (Amount playing with * 10)
As you can probably guess by looking at the formula, the effects of the Staking Multiplier gradually increases as you increase the staked amount, and decreases as you increase the amount you are playing with. Hence, to take full advantage of the Staking Multiplier, you need to strike a balance between the amount you have staked and the amount you are playing with.
Bonus Information — Positions Calculation
To showcase the effect of both the multipliers, one can look at the updated positions calculation formula:
More details about the formula itself will be shared in subsequent posts.
Hold On. There’s more to come!
While as exciting as these features are, PlotX is stacked with such mouth-watering features. As the PlotX mainnet launch nears fruition, the community can expect the unveiling of more such features.