Tokenized positions

Since Convergence’s rewards distribution is cycle-based (rewards for Cycle N+1 are distributed at the beginning of Cycle N+2), staking positions are not fungibles.

Thus, instead of issuing Interest Bearing tokens to represent staking positions, Convergence issues Interest Bearing NFTs. These NFTs can be traded on the open market or sent to other wallets. A user may iterate on an existing staking position, or create a new one at any time. When a new position is created, a new NFT is minted to represent this position.

Each NFT has a “lock” function that forbids its owner to either withdraw funds or claim rewards during a given duration. This function has been implemented so NFT buyers can’t be frontruned and receive an empty NFT.