Divvy Reservo

Divvy Reservo: Divvy Reservo is a crucial element in the CAPA DeFi Protocol, serving as a temporary holding space for assets, specifically cake tokens acquired through the Reservo Chef trigger. This component plays a pivotal role in optimizing reward distribution, introducing a 14-day waiting period known as "Spell" to encourage active user engagement, reminder to regular tax compliance, penalize short-term traders, and enhance the overall efficiency of the rewards system.

Spell: "Spell" refers to the 14-day waiting period associated with assets stored in Divvy Reservo. This waiting period serves multifaceted purposes, including incentivizing active user behavior, reminder to regular tax compliance, penalizing short-term trading activities, and streamlining the rewards distribution process for improved efficiency and reduced gas costs.

Spell Trigger: The Spell Trigger is an integral feature in the CAPA DeFi Protocol, activated exclusively after a 14-day waiting period from the last spell or the initial launch, or a relaunch event. This trigger plays a key role in initiating the distribution of cake tokens stored in Divvy Reservo.

Spell Divvy: Spell Divvy is the designated portion of rewards distributed to users from the assets stored in Divvy Reservo. It constitutes 25% of the assets, released after the 14-day waiting period, and serves as a reward for active participation in the CAPA ecosystem.

Purpose: The purpose of Divvy Reservo, Spell, and Spell Divvy is to optimize the reward distribution process within the CAPA DeFi Protocol. Divvy Reservo strategically holds assets, introducing a waiting period to add anticipation and align with the unique reward system. Spell Divvy represents a tangible incentive for active users, encouraging participation and engagement in the protocol.

Divvy Reservo, Spell, Spell Trigger, and Spell Divvy related Q&As:

Q. What is Divvy Reservo in CAPA DeFi Protocol?

Ans: Divvy Reservo is a storage mechanism where cake tokens purchased via the Reservo Chef trigger are held for a period of 14 days before undergoing distribution

Q. Why is there a waiting period of 14 days in Spell?

Ans: The 14-day waiting period, known as Spell, serves multiple purposes: encouraging active participation, reminding users to pay taxes, discouraging short-term trading, and optimizing rewards distribution efficiency.

Q. What is the Spell Trigger, and when does it occur?

Ans: The Spell Trigger is activated after 14 days from the last spell, the initial launch, or a relaunch event. It initiates the distribution process, rewarding users and maintaining the protocol's efficiency.

Q. What happens on the Spell Trigger in terms of rewards?

Ans: When the Spell Trigger is activated, it initiates the Spell Divvy, releasing 25% of the cake tokens stored in Divvy Reservo as rewards, while the remaining 75% continues to be held for era rewards.

Q. Can users access their cake tokens stored in Divvy Reservo before the 14-day waiting period?

Ans: No, the cake tokens held in Divvy Reservo are subject to the 14-day waiting period and cannot be accessed by users until the Spell Trigger is activated.

Q. How does the Spell Divvy contribute to the incentive structure in CAPA DeFi Protocol?

Ans: The Spell Divvy serves as a reward mechanism, distributing 25% of cake tokens to active users. This incentivizes users to remain engaged, contributing to the overall vibrancy of the CAPA ecosystem.