Heart Fund
Last updated
Last updated
The Heart Fund is a specialized staking pool within Pulse Capital that offers users enhanced rewards for contributing both Liquidity Provider (LP) tokens and STOCK tokens. This dual-token model is designed to maximize user returns while supporting the stability and long-term growth of the Pulse Capital ecosystem.
To participate in the Heart Fund, users provide a balanced mix of LP tokens and STOCK tokens. Each of the three available pools corresponds to a different LP pair:
Available Pools: DAI/WPLS, USDC/WPLS, PLSX/WPLS
Contribution Ratio: 75% LP tokens and 25% STOCK tokens
To stake in any of these pools, users must provide 75% LP tokens and 25% STOCK tokens. This combination ensures a balanced contribution of liquidity and STOCK, which is essential for maintaining the economic health of the platform.
When users stake their LP and STOCK tokens in the Heart Fund, they earn rewards at a rate of approximately 150% of the PulseX APRs. This means that the Heart Fund provides significantly higher returns compared to standard PulseX pools, offering users an attractive opportunity for increased earnings.
Example: If the APR for the DAI-WPLS pool on PulseX is 100%, staking in the Heart Fund would yield an APR of 150%, delivering greater returns for users.
To manage inflation and preserve reward value, Pulse Capital employs a rehypothecation strategy within the Heart Fund:
Rehypothecation: 50% of the generated rewards are reinvested into PulseX to create additional returns. This generates a sustainable rewards pool while controlling inflation.
Reward Split: 50% of the rewards generated in the Heart Fund are rehypothecated. This means that instead of directly distributing 100% of the rewards, Pulse Capital reinvests half of the PulseX rewards to generate additional returns. As a result, users earn their rewards in a 50/50 split:
50% of the rewards are distributed in STOCK tokens.
50% of the rewards are distributed in PCAP tokens.
This approach maintains robust rewards without overextending PCAP emissions, fostering long-term stability.
Although the Heart Fund provides higher APRs (150% or more compared to PulseX pools), the emission rate of PCAP tokens is deliberately kept substantially low. This ensures that more value is retained within the PCAP token, preserving its price stability and long-term value.
The Heart Fund offers several key advantages to users:
Increased APRs: With rewards set at 150% of PulseX APRs, users can significantly increase their earnings compared to standard staking options.
Balanced Risk and Reward: By requiring both LP and STOCK tokens, the Heart Fund incentivizes a balanced contribution that supports liquidity and the overall health of the ecosystem.
Sustainable Growth: The rehypothecation strategy ensures that the rewards pool remains sustainable and inflation is controlled, which helps maintain the value of PCAP tokens over time.