# \[KCF Application\] InvincibleNode, Accelerating Klaytn Liquid staking (even more)

**URL:** <https://govforum.kaia.io/t/kcf-application-invinciblenode-accelerating-klaytn-liquid-staking-even-more/605>\
**Category:** \[Closed\] Klaytn Community Fund Grant Program Pilot\
**Created:** [October 31, 2023, 2:32pm UTC](https://govforum.kaia.io/t/kcf-application-invinciblenode-accelerating-klaytn-liquid-staking-even-more/605 "2023-10-31T14:32:41Z")\
**Posts on this page:** 1\
**Showing post:** 12

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**Author:** ![Blockwavelabs](https://yyz1.discourse-cdn.com/flex035/user_avatar/govforum.kaia.io/blockwavelabs/32/427_2.png) [@Blockwavelabs](https://govforum.kaia.io/u/Blockwavelabs)\
**Post date:** [November 7, 2023, 10:15am UTC](https://govforum.kaia.io/t/kcf-application-invinciblenode-accelerating-klaytn-liquid-staking-even-more/605/12 "2023-11-07T10:15:29Z")

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Hi Colin, We had prepared responses for all of your questions. It would be highly appreciated as crucial questions that guided the improvement of the protocol.

Q1. / How many $invi I will get If I stake and leverage 10K KLAY with 4x leverage ratio?

A1. / **Total INVI Received** :  
- Based on the calculations, the total amount of INVI you can loan is 31,249.5824 INVI, assuming an exchange rate of 1 INVI = 1 KLAY.

here’s the logic following the amount of INVI that the user who leveraged 4X and staked 10K Klay would receive.

1. **Leverage Staking** :
  - If you stake 10K KLAY with a 4x leverage ratio, it means you’re using your 10K KLAY plus borrowing an additional 30K KLAY, resulting in a total staked amount of 40K KLAY.

2. **Lock-up Period** :
  - With a leverage multiplier (L) of 4, the mandatory lock-up period is calculated using the formula **`10*L^3 + 50`** , which equals 690 days.

3. **Protocol Fee** :
  - The protocol fee is determined by the formula **`2 + (360 * leverage multiplier * (leverage multiplier - 1) * principal) / pool amount`**, which in this case amounts to 218 KLAY.

4. **Staking NFT** :
  - The staking position is issued as an NFT, which records the leverage ratio, principal, borrowed amount, lock-up period, and fees.

5. **Future Value Prediction and Discounting** :
  - Assuming a 6% annual increase rate for KLAY, the expected KLAY amount after 690 days is calculated as **`(40K - 218) * (1.06)^(690/365)`**, which is approximately 44,566.567 KLAY.
  - To discount this to present value using a 7% discount rate, the calculation **`44566.567 / (1.07)^(690/365)`** gives us a present value of approximately 39,061.978 KLAY.

6. **INVI Loan** :
  - You can borrow up to 80% of the value of the NFT as INVI, so by the calculation **`39061.978 * 0.8`** , you can loan about 31,249.5824 INVI.

7. **INVI Burn and Lock-up Period Reduction** :
  - If you choose to burn the entire amount of INVI to reduce the lock-up period, the reduction time is calculated using **`Burned INVI's KLAY equivalent current value * total period / (NFT's KLAY equivalent current value * 1.1)`**, which results in approximately 501.81 days. However, even with this burn, the lock-up period does not reduce to zero; about 189 days remain.

8. **INVI and KLAY Demand Increase** :
  - This process will naturally increase the demand for both INVI and KLAY in the market, potentially affecting their value.

Q2. / Why the NFT is needed? What is the difference if users can get $invi directly instead of NFT?

Building upon the Klaytn ecosystem, the Invincible Node seeks to boost Klaytn demand and liquidity.

1. **Capturing the Potential for Diverse Financial Products** :

2. **Protecting the Value of Klay** :

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_[View the full topic](https://govforum.kaia.io/t/kcf-application-invinciblenode-accelerating-klaytn-liquid-staking-even-more/605)._