Sherlock is excited to announce that its 15% APY incentive program for stakers starts right now!!

Sherlock is now targeting a 10% USDC APY with an extra 5% in SHER tokens, for a combined ~15% APY. Hurry though: the pool is capped at 25M USDC and there’s only ~4.5M USDC of capacity left!

Note: The USDC APY in frontend may be slightly above or below 10% at any given time (as stakers enter and exit), but Sherlock will make sure to target a 10% USDC APY over the course of the 6 month staking period. To ensure this, the pool will be capped at 25M USDC.

Pool Performance

The staking rounds from March and April have been hugely successful, and Sherlock has decided to keep the momentum going.

If the performance of Sherlock’s March and April staking pools continue as they have so far with no payouts, then each staker from those rounds will earn a ~37% APY!!!

Most of that APY came from SHER token appreciation due to Sherlock’s seed round which will be announced next week. 15% of the APY was denominated in USDC. This round will start with a 10% USDC APY (with 5% extra in SHER tokens) and the goal is to approach a similar APY performance as the last round after 6 months!

Notable Events

As everyone knows, the past few months have been quite eventful.

In April, we saw the fall of LUNA and UST which resulted in large payouts (and massive pool depreciation) for many coverage providers such as InsurAce.

In May, we saw the $80M Rari Capital hack which resulted in a ~$5M payout from Nexus Mutual.

In June, we saw the beginning of the end for CeFi lenders such as Celsius, BlockFi and Voyager resulting in widespread panic across the space.

Despite stormy conditions all around us, Sherlock was able to successfully navigate turbulent times. Much of this was due to our stringent audit and underwriting process (turning down risky UST depeg coverage and unaudited Rari contracts), which we continue to bolster in ways that no other coverage provider is willing to.

To this day, the Sherlock staking pool has had zero payouts and zero claims filed. We are very lucky to have worked with some of the best smart contract auditors since Day 1, and Sherlock’s track record is entirely due to their skill and expertise.

We are working hard to continue this momentum, and we’ve overhauled our entire audit process in order to make protocols covered by Sherlock even more robust. We are 100% committed to showing that the crypto space can responsibly take care of itself and its users without external regulators stepping in.

Incentive Details

This round will function slightly differently from the rounds in March and April. The rounds in March and April included off-chain promises of yield, which will be claimable in Sherlock’s app when the staking period expires.

This round will show the ~10% USDC APY and SHER tokens on-chain, and the rewards will automatically be sent to your wallet when a position gets unstaked or restaked. This means you’ll (finally) be able to see the high APYs you are earning every day.

The incentive program works as follows: Sherlock expects ~8% average yield from premiums and yield strategies over the staking period. And Sherlock will commit to paying an extra 2% USDC APY (or whatever is necessary) over the course of the staking period to put the average USDC APY at roughly 10% over the course of the staking period.

Sherlock is committing to incentivizing the pool and targeting ~10% APY for the next 6 months. Because staking periods are 6 months long, it means that the sooner you stake, the more of that incentivized APY you’ll capture.

Along with the USDC incentives, Sherlock will be incentivizing the pool with SHER tokens. Sherlock will add another 5% APY in SHER tokens. Because the SHER token is not publicly traded, this 5% APY will be calculated at the valuation of Sherlock’s recently closed seed round, the terms of which will be announced next week.

All-in-all, Sherlock has demonstrated a perfect record when it comes to underwriting and we plan to continue making our underwriting and auditing processes even stronger.

Check out our continuously updating Overview page for all the statistics you need about Sherlock and the staking pool.

Make sure to stake before the $25M cap is reached!!