Euphoria DAO Documentation
Protocol Overview
Euphoria DAO is a decentralized protocol built on Base L2 (Ethereum Layer 2) that implements Protocol Owned Liquidity (POL) with an autonomous staking system. The protocol features progressive APY rewards, epoch-based progression, and algorithmic governance through AI-powered parameter adjustment.
Core Philosophy
- Reward Patience, Don't Punish Exits: No hard locks or withdrawal penalties
- Progressive Rewards: APY increases with time staked
- Autonomous Governance: AI-powered real-time parameter optimization
- Transparency: All mechanics are on-chain and verifiable
Key Metrics
- Network: Base L2 (Chain ID: 8453)
- Token: SMILE (ERC-20)
- Total Supply: 1,000,000,000,000 (1 trillion tokens)
- Epoch Duration: 3 hours (10,800 seconds)
- Starting APY: 33%
- Maximum APY: 3,400%
SMILE Token
Token Specifications
- Name: Euphoria
- Symbol: $SMILE
- Decimals: 18
- Standard: ERC-20
- Total Supply: 1,000,000,000,000 tokens (1 trillion)
- Network: Base L2
Token Features
Fixed Supply: The SMILE token has a fixed supply of 1 trillion tokens minted at deployment. No additional minting function is available after deployment.
Trading Tax: 3.33% on all DEX trades (buy and sell). The tax recipient is the Treasury contract. This tax applies only to DEX swaps (Uniswap, Velodrome). Withdrawals from staking are NOT taxed. The purpose is to fund the treasury for staking rewards.
Staking System
The staking system allows users to lock SMILE tokens to earn progressively increasing APY rewards. The longer tokens are staked, the higher the APY becomes, with rewards automatically compounded.
Core Parameters
- Epoch Duration: 3 hours (10,800 seconds)
- Starting APY: 33%
- APY Growth Rate: ~51% per epoch
- Maximum APY: 3,400%
- Minimum Stake: 100 SMILE
Epoch System
Epochs are 3-hour time intervals that determine APY progression. Epoch 0 starts at 33% APY, progresses through epochs 1-65, and reaches maximum APY of 3,400% at epoch 66. After epoch 66, APY remains at 3,400%.
Formula: APY = min(33% + (epoch × 51%), 3,400%)
APY Mechanics
The APY grows linearly with each epoch. With daily compounding, the effective APY reaches approximately 28,000,000% at epoch 66, though the displayed nominal APY is capped at 3,400%.
APY Progression
Rewards are calculated using compound interest. Each epoch applies the 1.0168 multiplier. Rewards compound automatically (no manual claiming needed for APY progression). Users can claim rewards without withdrawing stake.
Withdrawal System
The withdrawal system implements progress retention - users keep a percentage of their epoch progress when withdrawing, allowing them to restart at a higher APY than the base 33%.
Key Rules
- No Withdrawal Penalties: No taxes, fees, or lockups on withdrawals
- Partial Withdrawals Allowed: Users can withdraw any amount
- Progress Retention: Keep 1% per epoch staked, up to 66% maximum
- Full Rewards on Withdrawal: All accumulated rewards are included
Progress Retention Formula
Retention Percentage = min(epochsStaked, 66)
New Effective Epoch = (currentEffectiveEpoch × retentionPercent) / 100
Contract Architecture
Core Contracts
SMILE Token Contract: Standard ERC-20 implementation with fixed supply, 3.33% trading tax on DEX swaps, and tax exemptions for owner, treasury, and DEX routers.
Staking Contract: Epoch-based APY progression, progress retention system, reward calculation and distribution, and treasury integration.
Treasury Contract: Manages protocol assets and distributes staking rewards.
AI-Guided Protocol Governance
The protocol uses AI-powered governance to optimize parameters in real-time. Large Language Models analyze protocol health and adjust parameters automatically to maximize protocol lifespan and user returns.
Decision Framework
The AI monitors various metrics including treasury health, deposit velocity, withdrawal patterns, and whale activity to make optimal parameter adjustments.
Protocol-Owned Liquidity & Minting
Minting allows users to bond USDC to receive SMILE tokens at a discount while creating permanent protocol-owned liquidity. Minted tokens are automatically staked at maximum APY and unlock linearly over 66 epochs.
How It Works
- User bonds USDC to the protocol
- Receives SMILE tokens at a 33% discount
- Tokens are automatically staked at maximum APY (3,400%)
- Tokens unlock linearly over 66 epochs
- The LP tokens stay with the protocol forever, creating permanent liquidity
Minting vs. Regular Staking
Mint (Bond): Entry at 33% discount, starts at maximum APY (3,400%), linear unlock over 66 epochs, creates permanent liquidity for the treasury.
Buy & Stake: Entry at market price, starts at 33% APY, ramps up over 66 epochs to maximum, no lock period.
Security Features
Contract Security
- Reentrancy Protection: Uses OpenZeppelin's ReentrancyGuard
- Safe Token Transfers: Uses SafeERC20 for all token operations
- Access Control: Owner-only functions for sensitive operations
- Input Validation: Checks for zero amounts, sufficient balances
- Treasury Validation: Verifies treasury has sufficient balance before rewards
User Protection
- Minimum Stake: 100 SMILE prevents dust attacks
- No Rug Pulls: Treasury is separate contract, not owner-controlled
- Transparent Calculations: All formulas are on-chain and verifiable
- No Hidden Fees: All fees are explicit (only trading tax, not withdrawals)
Technical Specifications
Mathematical Formulas
APY Calculation: APY(epoch) = min(33% + (epoch × 51%), 3,400%)
Compound Growth: Value = Principal × (1.0168 ^ epochs)
Progress Retention: Retention = min(epochsStaked, 66), New Epoch = (currentEpoch × retention) / 100
Gas Estimates
- stake(): ~150,000 gas
- withdraw(): ~200,000 gas
- claimRewards(): ~180,000 gas