# Rewards (Drain)

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**ATTENTION:** This document is a rough draft and hasn't been fully developed yet.

The contents here-in may be incomplete, out-of-date, and modified radically in future revisions.
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After each execution of **The Drain** any user earned ETH or DRC yields may require up to 48 hours to appear available for harvest.
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### **Staking Tokens on Dracula Protocol / Drain Allocation:** 

Each day Dracula Protocol performs a **Drain** that liquidates rewards earned using the staked LP tokens from victim platforms and swaps the underlying platforms' reward tokens for ETH.  

| Reward Distribution on Dracula Protocol  | % of Rewards Earned |
| ---------------------------------------- | ------------------- |
| Victim Pool Liquidity Providers          | 85%                 |
| DRC Single-token Pool                    | 3.75%               |
| DRC-ETH UNI-V2 Pool                      | 6%                  |
| Developer Fund                           | 3.75%               |
| Gas Fund (to fund on-chain transactions) | 1.50%               |

Each Drain is funded by a portion of the underlying reward yields harvested from the victim pools.

### **85%** of rewards go to Staked victim LP token providers

The awarded funds are automatically invested into an interest-earning ETH strategy which accrues compounding yield until a user chooses to harvest their individual earnings. 

All earnings collected through the Drain compound in ETH.  Users can choose to harvest their earnings in ETH -or- DRC regardless of the pool.   If a user opts to harvest their earnings in DRC their share of ETH is swapped for DRC on the open market at the time of the withdrawal. 

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**IMPORTANT:** Withdrawal (unstaking) within the first 24 hours of a LP token deposit (staking) incurs a non-negotiable 0.5% fee against the value of LP tokens withdrawn from the victim pool.  This fee is to help prevent manipulation of the drain mechanism.
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After each drain, these rewards are linearly distributed *to each user over the following 24 hours*, which will ensure consistent yields rather than spiked earnings after each drain.
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Every 24 hours at approximately 12 UTC the Dracula Protocol executes a process known as **The Drain.**  This process claims all earned rewards from the underlying platform (SUSHI, DODO, etc.) victim pools.  

Once **The Drain** has completed all reward claims the process executes sale orders on all rewards exchanging the tokens for ETH.  The ETH is invested in a RARI vault that generates additional value through compounding interest on the deposited ETH.

**The Drain** is executed by the Dracula Team and is funded by a portion of the underlying reward token yields from victim platforms.

For more information about how the Drain is allocated see our [Tokenomics](https://dracula-protocol.gitbook.io/dracula-protocol/token/tokenomics) section.