Welcome to LOCK.

LOCK Staking is integrated natively in wallets like DFX. DFI Coins (DFI UTXO) can be transferred directly into LOCK Staking within the LOCK application in order to receive daily Staking rewards. LOCK pools the DFI to create Masternodes with it. Creating a Masternode requires 20’011 DFI and thus, LOCK pools the DFI of its customers. Any amount >1 DFI can be staked at LOCK and therefore, a reinvestment of Staking Rewards is possible as well to benefit from compound interest. Staking Rewards are paid out on a daily basis and are reinvested into Staking by default. However, the upcoming Reward Diversification enables users to diversify their Rewards into other assets automatically (see below). 

Unstaking of DFI is possible at anytime and is usually processed within minutes, if not many users unstake their DFI simultaneously! Before Staking can be accessed, a KYC process needs to be passed successfully. However, your KYC data can be transferred from DFX to LOCK, if you’re a customer at DFX, so that you don’t need to do the KYC process again. Otherwise LOCK offers an own KYC process.

LOCK has a strict Transparency approach and users can check and verify anytime that their funds are there, available and can be withdrawn anytime! All Liquidity and Reward addresses for DFI Staking and the DUSD/DFI YIELD MACHINE are public. More details regarding LOCK’s Transparency approach can be found here.

You can stake and unstake your DFI anytime. Usually, you receive your DFI within 5 min after unstaking. However, if many LOCK customers want to withdraw their DFI at the same time, Masternodes have to be resigned which takes 16h on DeFiChain. In that case, LOCK user need to wait longer for their DFI. For further information, please have a look at our Terms & Conditions. There is a GSheet providing inforamtion about the current available liquidity at LOCK, so that users can estimate, whether their withdrawal will be processed quickly or not. 

There is just a 5.55% fee on Staking Rewards and 19.9% on Yield Machine Rewards at the moment. Please have a look at our Terms Conditions for a detailed overview of LOCK’s fee structure for Staking and the Yield Machine.

The private keys of the Masternodes (Owner addresses) are kept by LOCK and thus, the custody of customer’s DFI are done by LOCK as well. The operator nodes, however, are operated by mydeficha.in (a German service specialized in running operator nodes) in order to guarantee a Masternode uptime of >99%.

The standard asset for Staking rewards is DFI (V1) which will be reinvested automatically. All Staking Rewards are paid out once per day either to the user’s wallets or to the LOCK Staking Deposit Address for reinvesting. Users will be able to choose their assets of the paid out Staking rewards on a percentage basis in V2: LOCK Reward diversification. For instance, it will also be possible to receive Staking rewards in different assets on DeFiChain like dBTC, dETH, etc. as well as in stablecoins (e.g. dUSDT, dUSDC) and/or liquidity tokens (e.g. dUSD-dTSLA). Furthermore, Staking rewards can be paid out in native Bitcoin and onto other Crypto protocols at a later stage (V3). More information can be found here.

• LOCK runs a 2×3 MultiSig set-up in a physical manner which means that always at least 2 people are needed to get access to the private keys of the Masternodes to resign them and to withdraw funds of customers
• There are physical barriers, so that not a single person can withdraw any customer funds, and if so, anyone would notice immediately, since Blockchain transactions are 100% transparent and any withdrawal can be traced & tracked
• The access details are kept by different people who are also separated locally 
• The private keys are stored physically OFF-line separated from the Internet via a serial interface, similar to a hardware wallet like a Ledger
• Masternodes or rather the private keys of a Masternode are only needed to resign a Masternode and for voting rounds of the network in order to sign a message 
• If a Masternode needs to be resigned or if a Masternode needs to vote, it is done through the serial interface. The serial interface has a very limited command set which only allows commands that are actually needed for creating or resigning a Masternode and the voting mechanism

Any LOCK user is able to vote on CFPs/DFIPs regardless of the amount of staked DFI. Any user can vote YES/Neutral/NO on each CFP or DFIP. The LOCK Masternodes vote pro rata following the will of LOCK users. LOCK always votes with all its Masternodes to get the maximum out for its users, since Voting on DeFiChain is rewarded with DFI and these DFI are distributed to LOCK users! Also, DeFiChain On-Chain governance is supported by LOCK!

Yes, LOCK will integrate further Staking protocols for its users in future.

Everyone can vote and participate in DeFiChain voting rounds, proportionate to the amount of staked DFI at LOCK. Of course, DeFiChain On-Chain governance is supported by LOCK 

The LOCK YIELD MACHINE (YM) provides effortless yield on your DUSD and DFI as well as dBTC, dETH, dUSDT & dUSDC later-on! Therefore it uses DeFiChain Vaults to mint DUSD to benefit from the current negative interest rates due to the latest DeFiChain DFIP. The negative interest rates are paid out to YM users as rewards and thus, an APY of up to 49.2% can be realized! This APY is the effective return after deducting fees.

LOCK manages the entire Vault infratructure for its users, so that users just need to deposit DUSD or DFI into the YM. The deposited DUSD and DFI provide the collateral for the DUSD loans and are NOT swapped into other Cryptos! The rewards are paid out in DUSD and are entirely reinvested in first version of the YM in V1.

The YM runs a secondary DeFiChain vault to mint dTokens like dSPY! This enables rewards in DFI and DUSD that are then reinvested in V2. A full reward diversification will be enabled in V3 in which users can diversify their rewards in all kind of assets on the DeFiChain that are paid out to the user wallets.

• significantly higher and benchmark rewards on your DFI and dUSD (up to 49.2% APY) than with e.g. DFI Staking (APY 20%)
• No risk of vault liquidation due to bullet-proof vault concept by LOCK
• Rewards are automatically reinvested by LOCK
• Reward Diversification will also be enabled for the Yield Machine
• Actively supporting the DeFiChain ecosystem by helping the mechanisms to bring the dUSD back-to-PEG and increasing the utility of DFI

DFI withdrawals from the Yield Machine will be activated in calendar week 6, 2023 on Feb 9th, 2023!

Usually withdrawals from Staking and the Yield Machine are processed within minutes, if sufficient liquidity is available or rather if the amount of the withdrawal is not too large. If not, withdrawals of the Yield Machine take 1h and withdrawals from Staking take 16h due to the resigning of DeFiChain Masternodes. If it takes longer, please contact support@lock.space . The available liquidity of LOCK can be monitored in this GSheet.

LOCK runs a LOAN scheme of 150%, meaning you would be liquidated at 150% collateralization ratio, to be exact if you are ~15min/30 blocks below 150% with your Vault! The collateralization ratio of LOCK is set to 170%.

LOCK checks the next price of the mined asset, which is 1h ahead! If a deviation is determined, e.g. of 0.05%, i.e. if the then Collateralization Ratio would lie with 169.95%, by the Next Price, Collateral is refilled so that the collateralization of 170% fits again.

Furthermore, there is an emergency mechanism at 155%, which shoots additional collateral at this threshold!

Last Resort is an emergency check, the EVERY 5 minutes, checks that you are in any case above 150% collateral and if not by automated collateral is shot, so that you can not even be longer than 5 minutes below 150% attendance!

The LOCK vault strategy consists of a primary vault and a secondary vault that are linked to each other. Customer funds in DFI and DUSD as well as dBTC, dETH, dUSDT/C in near future are deposited into the primary vault as collateral to mint DUSD loans. These DUSD loans are subject to negative interest rates due to the recent DeFiChain DFIP. These negative interest rates generate the returns in the first place. Parts of the DUSD loan is then put into the secondary vault to mint dTokens, in the beginning only dSPY and other dTokens later-on as well. Furthermore, dTokens like dSPY, dTSLA or dQQQ can be added to the Yield Machine to generate Yield for its users.  The other part of the DUSD loan is then put into Liquidity Pools with the minted or deposited dTokens to generate additional returns via Liquidity Mining at a later stage. This also enables the payout of Rewards in different assets like DFI or dBTC.

The flexible Reward Diversification provides the possibility to receive rewards from Staking and the Yield Machine in different assets and not only in the underlying asset. This option also provides the possibility to pay out the rewards to your wallet, instead of re-investing into Staking or the Yield Machine. 

The Reward Diversification V1 for Staking enables the diversification into DeFiChain assets like DFI, dBTC, dETH, Stablecoins like dUSDT/C and even Liquidity Pool token like dBTC-DFI or DUSD-DFI.

The Reward Diversification V1 for the Yield Machine will be a Reward payout in DFI and DUSD before enabling the diversification into DeFiChain assets like DFI, dBTC, dETH, Stablecoins like dUSDT/C and even Liquidity Pool token like dBTC-DFI or DUSD-DFI in V2.

The Diversification into different protocols, e.g. into native Bitcoin oder native USDT and in Cash right into bank account will be possible for Staking and the Yield Machine as well at a later stage.

Yes, there is a CSV file export available that generates a proper documentation of your rewards (Staking + Yield Machine) as well as any deposits and withdrawals being made at LOCK. By clicking onto the ‘CSV EXPORT’ button within the LOCK application, a CSV file generated that can then be used on our partner’s platform of chain.report to generate a proper tax documentation. Furthermore, you can provide your DFX wallet address on chain.report to generate a tax documentation for your LOCK rewards, instead of uploading your CSV file. 

If you use CoinTracking for tax documentation purposes, please use this link to generate the CSV file for your LOCK account that can then be uploaded to CoinTracking. Just replace ‘YOURADDRESS’ in the link with your DFX wallet address.