Staking STAX & Upcoming Roadmap
It’s been an amazing two days since our launch — time flies when you’re having fun, and we’ve already seen an all-time high in TVL with 8…
It’s been an amazing two days since our launch — time flies when you’re having fun, and we’ve already seen an all-time high in TVL with 8 million USD in stablecoins deposited into our farm contracts. This also represents a significant percentage of all the stablecoin assets on BSC, while only having a circulating market cap of under $25K USD for most of earlier today. We have been super excited to have some good chats about governance, staking, and other mechanisms that will allow for value accretion to the platform.
As a result, we’re excited to the imminent launch of our STAX staking program.
Users will have the option of parking their STAX into contracts with 2-week, 1-month, and 1-year lockups.
In exchange, users will receive STAX2W (2 week), STAX1M (1 month), and STAX1Y (1 year) tokens in return, which can be then staked into pools that will have the following distribution weights:
2 weeks: 2x weight
1 month: 3x weight
1 year: 8x weight
This will encourage our users to lock up STAX and remove them from circulation. Additionally, to make sure that rewards go more to STAX holders than just stablecoin holders who are earning yield via mining, we chose these weights so that in aggregate, STAX holders would earn a total of (5+5+2+3+8 weight) 23/32 of the rewards, or 71.875% of the STAX issuance, with the remaining split between the 3 stablecoin pools.
I repeat, the supermajority of STAX rewards will only go to staked STAX believers like you!
In the very near future, these staking lengths will also translate into higher governance vote power as well, so choose wisely when you decide to stake your STAX. The current plan will be to give the same weights of votes as the pool rewards, so STAX LP holders get 5x weight, 2-week stakers get 2x weight, etc. We will let you know when the integration with snapshot.page is ready! Our estimate is for midweek this upcoming week, but more on our roadmap in a bit.
Another important note is that we will design these pools to be only depositable through our official contract (link coming soon), which allows us to do one important thing with these pools: ensure that staking rewards are vested along with users’ capital. Thus, these higher yields will not hit open market right away like they do for for the liquidity pool providers. Thus, 2 week stakers’ yield rewards will be distributed biweekly along with their coins being released from stake. Every two weeks, we will re-launch a new 2 week staker pool entrance period, so that users have a new chance to participate in the staking each week, with other holders not being worried that rewards get dumped right away on open market.
Similarly, 1 year lockers, who get the highest reward, only see their rewards in 1 year, so they will naturally lock up the most rewards and upcoming supply, as their rewards will vest with their locked tokens. This will dramatically reduce liquid tokens in circulation, as 25% of all issuance would be instantly staked! This is a big milestone that we’re excited to launch alongside you guys.
Golden Staking Period
Further, to ensure that the community understands that our team will not dump any tokens and that the community treasury is properly vested, the dev wallet (link to BSCscan) will also participate in these staking contracts to ensure that these tokens cannot be dumped on the open market right away. Thus, we will in 2 weeks, lock up the majority of the community treasury to spread into these three lockups periods, to make sure that all users have a good chance to earn great yields early on in this staking program without fear of dilution from the community treasury tokens, while also making sure that community tokens don’t get dumped or otherwise manipulated. This will also let the community treasury grow as the project grows in a transparent manner. More information on the exact locks will be released later, but to reiterate — the community treasury will not dilute any staking rewards for at least the first 2 weeks, or even longer, as determined by the community.
This will also encourage currently circulating STAX to quickly get staked up into the contracts, ensuring that price is stable, rather than users waiting a long time before staking, as yields will be best when these pools are least crowded.
We’ve promised a few things for you guys, the community, and so here’s are short to-do list starting from today, October 18th, 2020.
11AM UTC: Start of STAX/BUSD liquidity pool (5x rewards) — increases rewards to STAX liquidity providers in hopes of increasing liquidity
11:30 AM UTC: the announcement of our STAX staking program
No later than 5PM UTC: The announcement of the official staking contract address and details, which will require at least the 8 hour time lock to go into effect.
Week of October 19th:
Staking contract will go live (directly via the StableXSwap.com interface)
v1 of StableXSwap stablecoin swap features — the product you guys have been waiting for!
Inviting early beta testers for the swap to make sure the contract and product works smoothly
Governance voting via snapshot.page
Dark Mode (we hear you guys!)
Solicit competition for audits of StableXSwap v1 (beta)
Discuss migration plans in further detail
Our team is ready to move fast, and we’re excited to build with you all
Let’s keep stacking STAX!
StableXSwap useful links:
Telegram Group: https://t.me/stablexswapofficial
Telegram Announcements: https://t.me/stablexswapann