Orbs PoS V3: Multi-chain staking was recently launched on Ethereum and Polygon.
Since then, the total delegated stake has increased by ~60M ORBS, with almost 20% of it now staked on Polygon!
Once again, we want to thank the entire Orbs community for making the launch of Orbs PoS V3 such a great success!
Polygon's reduced gas costs also paves the way for new and exciting features that were not practically available on Ethereum.
One of these is auto-compounding.
Auto-compounding means that the ORBS staking rewards tokens are automatically re-staked in order to optimize the Delegators’ staking APY.
Polygon’s low fees makes this functionality economically viable, unlike on Ethereum where the gas costs are significantly higher. As a result, the auto-compounding feature is available only on Polygon.
After making the necessary calculations, the Orbs team concluded that the optimal auto-compounding frequency is once a week. This means that all Orbs staking rewards on Polygon will be automatically re-staked once every week. Orbs Delegators do not need to take any action at all and will be able to see the auto-compounding taking place in their Tetra staking wallet.
Furthermore, for the roll out of this new feature and until further notice, the Orbs project will cover all the MATIC gas costs for the auto-compounding transactions. This means that Orbs Delegators will not bear any additional costs as a result of the activation of the auto-compounding feature.
APR stands for Annual Percentage Rate, while APY is Annual Percentage Yield. The difference is that APR does not include compounding effects.
For example, If you were to invest $100 with 100% APR, you would make $100 in profit. If, however, you reinvest your profits regularly, you will compound your interest. This calculated over a year gives you the APY.
As can be seen below, this difference can be quite significant over longer periods of time as APR provides a linear yield, while APY is exponential!
The Orbs proof of stake mechanism is the backbone of the orbs network. Orbs PoS V3: Multi-chain staking on Ethereum and Polygon addressed one of the key feedbacks from the community following the V2 launch, ensuring inclusion and participation of more Orbs token holders in the Orbs PoS system.
The Orbs team will continue to improve the Orbs PoS architecture, introducing new features such as auto-compounding, to ensure a robust and secure Orbs network.