Pre-deposit Vault - Reward Mechanics
The Pre-deposit Vault earns rewards by acting as a Token Provider once the Token Pool and StakeBase contracts go live. Until then, eATH holders will not accrue any rewards. After activation, staking yield is determined dynamically based on how much of the Vault’s ATH is borrowed by Cloud Hosts.
1. Reward Activation
Start Date: After protocol activation (estimated July 13, 2025)
Eligibility: Must hold eATH in your wallet
Claiming: Manual (users need to harvest rewards via the dashboard)
Compounding: Not automatic — to compound, users must claim and re-deposit
2. Reward Formula
Once activated, rewards for eATH holders follow a utilization-based share model:
Utilization (U) is defined as:
U=TotalATHlenttoCloudHosts/TotalATHdepositedbyTokenProvidersUsers earn a proportional share of the rewards generated by Cloud Hosts who borrow ATH from the Vault. The more eATH you hold, the larger your share of the total rewards.
Note: The total rewards available to the Vault depend on how much of its ATH is actively borrowed and used by Cloud Hosts. These parameters are set and updated by the Aethir Foundation.
3. Dynamic Reward-Share Curve
Rewards scale depending on how much of the Vault is in use:
A. If Utilization ≤ Target (default: 70%):
If U ≤ U_target:RewardShareRate(U) = BaseShare \div (U ÷ U_target × Slope1)
B. If Utilization > Target
If U > U_target: RewardShareRate(U) = BaseShare + Slope1 + ((U – U_target) ÷ (1 – U_target) × Slope2)
This means:
If demand for staked ATH is low, rewards are reduced
If demand exceeds target utilization (e.g., 70%+), additional yield is unlocked
Target Rates are set by the Aethir Foundation to ensure fair and sustainable yield distribution across the ecosystem.
The chart illustrates how staking rewards increase dynamically with utilization, offering higher yields as more ATH from the vault is borrowed by Cloud Hosts.
Reward Distribution Logic
Proportional Rewards: Your yield is based on your share of total eATH supply
Daily Settlement: Rewards are calculated and updated every 24 hours (UTC+12)
No rewards accrue before vault activation, even if eATH is held
The Reward Share Limit Utilization rate is set at 85%, which means the protocol reaches its maximum reward share rate (30%) when the Token Pool utilization hits 85%.
Utlization
Reward Impact
70%
Optimal - full base reward captured
75%
Bonus Yield - Slope2 curve active
Summary
Mechanism
Details
Reward Token
ATH
Eligibility
must hold eATH
Claiming
Manual (Via Dashboard)
Vesting
30 days after withdrawal request
Last updated