Reward Duration is a fundamental concept for understanding the rewards of the $KFI Staking Pool. Earned rewards for $KFI Staking Pool users; in this case, $KLAY is from Performance Fee in KlayFi Other Vaults.
When the Performance Fee is distributed to $KFI Staking Pool as a rewarding source, not distributed at once. Distribution depends on Reward Duration. KlayFi has 14 days of Reward Duration, and this means that the rewards earned at each point in time will be distributed linearly as $KFI Staking Pool rewards over 14 days.
The reason for applying this Reward Duration is to secure stable financial resources for the protocol. A Yield Aggregator like KlayFi has 14 to 90 days of Reward Duration based on its market strategy.
For reference, as the protocol maintains the same TVL after the official launch, due to the effect of Reward Duration, the reward rate will increase dramatically. Please see the below example for details.
The reward for the KFI Pool
(based on Performance Fee
from KlayFi Other Vaults)
Distributed rewards based on
r1/14 + r2/14
r1/14 + r2/14 + r3/14
r1/14 + r2/14 + r3/14 + ... + r13/14
r1/14 + r2/14 + r3/14 + ... + r13/14 + r14/14
r2/14 + r3/14 + ... + r13/14 + r14/14 + r/15/14
Key Assumption in the table: Example shows the result when a user claims rewards once a day. Actual rewards are accumulated every time when a user claims.