🪺Cocoon
The Cocoon is the core inflation mechanism of Moth Finance—where $MOTH tokens are minted. By staking $gMOTH, you can earn $MOTH during expansion epochs and actively participate in the protocol’s growth.
The Cocoon functions as a locked single-staking platform, where $gMOTH holders briefly lock their tokens to receive a share of the protocol’s expansion rewards ( revenue ). This mechanism not only rewards stakers but also helps stabilize the ecosystem by adjusting the supply of $MOTH according to the generated revenue and demand.
Cocoon starts emitting $MOTH supply, if above the 1.01 USDC TWAP, on September 18th 00:00 UTC.
Cocoon Mechanics
Earn $MOTH rewards during expansion epochs
Actively contribute to protocol stability and governance
Align with the protocol’s long-term vision
Why Stake in the Cocoon?
This conservative approach protects the protocol from excessive inflation while maintaining long-term growth and stability.
Unlike other similar protocols, Moth Finance’s expansion model is carefully calibrated to adapt to protocol revenue and market conditions, ensuring sustainability and peg stability.
Expansion Mechanism
83% of $MOTH rewards are given to Cocoon $gMOTH Stakers
10% goes to the Treasury
4% goes to the Team
3% goes to the Development Fund
Distribution of $MOTH
Epoch Duration: 6 hours
Deposit/Withdrawal Lock: 4 epochs after staking or withdrawing $gMOTH
Reward Claim Lock: 2 epochs after claiming rewards
Both Depositing AND Claiming Rewards: Locks your staked $gMOTH for an additional 4 epochs, with the next $MOTH rewards available 2 epochs later.
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