Staking

TSN tokens can be staked in staking section of interface to provider holder with additional yield.

Tsunami incurs a flat 1% fee on opening of each position on the platform. Half of the fee goes to an insurance fund that helps to stabilize a protocol and close underwater positions. Another half distributes to TSN stakers as a reward.

Assuming half of ILO supplied tokens are sold (325000 TSN), that makes TSN price on exchange $0.95. Assuming 75% of the tokens are staked, that makes 245000 TSN staked, with a total staked value of 245000 * $0.95 = $232750

Let’s assume a daily trading volume of $500000. Half of it is opening new or increasing positions, that actually incurs a fee. That means, 250000 * 0.01 / 2 of fees distributed to stakers, or $1250 daily. That gets stakers 1250 * 365 in rewards over a year, in addition to their staked value, that gets us (232750 + 1250 * 365) / 232750 = 295% APY

Note, that this number is approximate and under many assumptions, however this shows how rewards are accumulated in Tsunami. An additional income source of Tsunami is staking off all the USDN used as collateral and in an insurance fund in Neutrino staking. Currently, Neutrino staking is not quite profitable (0.05% APY), but in the future with Waves price rising, it can return to 5-15%, providing additional substantial source for protocol yield.