Staking Rate Perpetuals (UMON)

This perpetual contract tracks the network APY earned by delegating to Monad validators, allowing traders to speculate on or hedge the staking yield of the Monad network.

Units & price format:

• Canonical rate unit: percent APY (e.g., 5.50)

• HIP‑3 price unit: APY × 100 (basis‑points × 100).

• Examples: 5.50% → 550.00, 0.75% → 75.00.

Preliminaries:

Let time be in seconds, and define the annualized staking rate r_t%. We convert to a HIP‑3 price by:

$$\texttt{price}_t = 100 \cdot r_t.$$

Characteristic	Description
What it tracks	The annualized staking APY from Monad block rewards, adjusted for validator commission and realized block production.
Index Definition	A direct price representation of the APY. An APY of 5.50% is represented as a price of 550.00.
Oracle Type	An Always-In-Session Oracle that operates 24/7 without weekend or off-hours policies.
Special Controls	Operates with standard HIP-3 controls, including a ~3s update cadence and a 1% per-update clamp to ensure smooth pricing.

OraclePx

Because Monad's staking and block production run 24/7, the oracle operates in a single, continuous session, identical to the HYPEYLD-PERP.

Inputs

1. Network parameters (block reward, block time).

2. Validator state (commission, total stake).

3. Production: realized block‑production share per validator (30‑day rolling).

4. Target scope (one of the following):

   1. Network‑wide average (stake‑weighted across a validator basket).

   2. Per‑validator (launch multiple tickers, each scoped to a validator).

Rate Model

For a delegator staking with validator v (or across a basket), at each block:

• Commission: Comm = REWARD x c_v

• Net pool: Net = REWARD - Comm

• Delegator share: Share = Net x (Delegator Stake / Validator Stake)

• Annualization: multiply by blocks/year × production‑share.

• APY: r_t = 100 x (Annual Rewards / Delegator Stake)

These steps are implemented by the calculator in the staking‑rate repo.

Publishing Policy

We publish the oracle price as:

$$\boxed{\texttt{oraclePx}_t = 100\cdot r_t}$$

with the following HIP‑3 constraints:

• Cadence: update every ~3s.

• Clamp: max ±1% change per publish (same per‑tick clamp used in the VXXN/TBY write‑ups).

• Start‑of‑day bound: cap to 10× prior day’s open (optional but recommended in production; same spirit as other markets).

• Staleness gating: if any critical input is stale (e.g., RPC timeout), hold last good value and raise a health flag; if health is degraded for ≥N seconds, switch to the fallback blend (below).

Aggregation Options

To reduce single‑source risk, an oracle program ingests multiple sources and returns a composite rate:

• Primary: RPC‑derived staking APY (single validator or basket).

• Secondary: basket verification via alternate RPC or indexing service.

• Optional sanity input (low weight): market‑implied APY from the live perp (capped at small weight to avoid circularity).

• Weights: static or slow‑moving; do not introduce intraday session weights because the source is 24/7.

MarkPx

markPx_t is the final mark price, used for liquidations and equity calculations. It is hardened against manipulation by taking the median of three variants, consistent with all other Nunchi markets:

1. MarkPx0: The pure oracle price.

2. MarkPx1: A smoothed version of the oracle price, adjusted by the order book's mid-price:

$$\text{MarkPx1}_t = \texttt{oraclePx}t + \text{EMA}{150\text{s}}\big(\texttt{oraclePx}_t - \texttt{midPx}_t\big)$$

1. MarkPx2: The venue's local mark price.

ExternalPerpPx

The external price anchor, used as a band-limiter by the venue, is a slow-moving average of the mark price, ensuring stability:

$$externalPerpPx = EMA_{5–15m}(markPx)$$

Worked Example

1. Nunchi's oracle ingests Monad network data and computes a real-time staking APY of 5.56%.

2. The oracle formats this rate and publishes an oraclePx of 556.00.

3. The markPx is then calculated as the median of 556.00, a smoothed order-book variant, and the venue's local mark.

4. The ExternalPerpPx is published as a slow-moving average of this markPx.