Fuel Cells

What are Fuel Cells?

Fuel Cells are vaults that you can stake your H2 tokens in for set durations (activation cycles), and start earning H2 tokens right after the deposit.

Three layers of rewards:

1. With the tokenomics in the form of deposit weight

There are currently 4 lengths of maturity for Fuel Cells with their corresponding multiplier shown below:

Activation Cycles	Multiplier
3 months	1x
9 months	4x
24 months	10x
48 months	20x

The longer the cycle you choose to deposit your $H2 tokens in, the greater the multiplier and thus the greater the rewards you will receive. As a representation of the rewards you are entitled to, $HYDRO tokens will be minted to your wallet. $HYDRO tokens are not transferable and will be burned when you withdraw $H2 tokens from your Fuel Cell positions.

You can start earning rewards as soon as you activate your Fuel Cell positions, and claim the rewards at any time.

1. With the $H2 token buyback mechanism

When you deposit your $H2 tokens into Fuel Cells, a portion of our platform's earnings is used to purchase $H2 tokens periodically from the open market. The purchased tokens are then shared between users with Fuel Cell positions, and labeled as Extra H2 when you withdraw your $H2 tokens.

1. Early withdrawal penalty from other depositors

For those who wish to withdraw their funds early, they will be subject to a penalty. The penalty is paid in $H2 tokens and is added to a separate reward pool. This reward pool is distributed to other users based on the amount of tokens they have locked up in their Fuel Cell positions.

Note: The APRs will vary based on Fuel Cell utilization. In general, the earlier and longer you lock your $H2 tokens, the higher the APR. The APR will lower as more tokens are locked across Fuel Cells.