Skip to main content

Kelp Savings Account (KSA)

This is the Kelp Staking Smart Contract that allows users to deposit funds in order to earn interest on their deposits through Kelp’s Variable Interest Rate (VIR). The VIR is calculated based on input from the Kelp Protocol and then provided to the Kelp Oracles for consumption by the Staking smart contract. During times where there is Negative Price Drift (NPD), the interest rates will increase to sway behavior towards savings and earning interest on their balance within the contract. During Positive Price Drift (PPD), the interest rates will decrease to sway behavior towards trading.

The Yield Rate for staking and term deposits is as specified:

Yield Rate=idKP(34)Yield \space Rate = i * d * K_P \tag{34}

ii = Nominal Kelp Interest Rate
dd = Duration Multiplier
KPK_P = Kelp Performance Multiplier

In the outlined framework, the initial setting of the Kelp Interest Rate, denoted by, i, is fixed at 2.5%. A pivotal element of this model is the 'Duration Multiplier,' a construct that establishes a direct correlation between the duration of Kelp asset commitment and the accrual of additional bonuses for designated time periods. The model stipulates a minimum engagement duration of four hours as a prerequisite for the commencement of interest accumulation, extending to a range of term deposits that span from two weeks to a maximum of five years. It is a requisite condition that each specified term be completed in its entirety to facilitate the disbursement of both the principal sum and the accrued interest. Further, the introduction of the 'Kelp Performance Multiplier,' predicated on the velocity of the Kelp Token Price, represents an innovative method for the adjustment of returns. This multiplier is specifically calibrated to mirror market sentiment, with a design to augment returns in market downturns. This comprehensive model is crafted to foster certain market behaviors in alignment with short-term strategic goals, offering a sophisticated and responsive mechanism for implementing Kelp monetary policies.