Introduction to staking
October 12, 2021
Today, we will talk about staking. I would say, that there are two levels of staking:
Each one gives you different benefits.
Let’s go into the details of the first one!
You have to connect your wallet, fill in the number of tokens you wanted to deposit, click the deposit button, and … that’s it. You are staking on Synthetify.
What are the benefits? Lower fees on swapping between different synthetic assets. Normally you would be charged 0,3% per transaction, but if you stake SNY, it will be lower. The exact range is provided below.
Ok, so what about the second option?
If you want profit even more, you can bring into play your staked assets. To do it, just mint xUSD (and then you can exchange it to any other synthetic asset).
Done? Now you can start earning rewards, because you’ve just become a debt pool participant.
LIQUIDITY MINING & REWARDS
Rewards are benefits gained from maintaining your debt and the greater it is, the better rewards. You can increase your debt by minting more synthetic assets.
At the beginning of the subscription round, you are given pro rata shares corresponding to your debt, which are depicted as the amount of SNY tokens. You can get more shares by minting more synthetics and vice versa. To start earning rewards, those shares have to be moved to the staking phase. How to do that? You just have to wait till the end of the current round.
Earning rewards contains three stages: subscribing, staking, and claiming. Each one is approx. 7 days long (the exact duration is 1209600 slots. Each slot takes ~0.5s now. In the future, it should be 0.4s).
In the subscription phase, you can receive pro rata shares for taking part in the debt pool. It could change during this phase proportionally to the size of your debt.
In the staking phase, you join with the number of pro rata shares you had at the end of the previous phase and you can retain them by maintaining your debt. The value will decrease proportionally when you burn your xUSD.
In the claiming phase, you can claim your rewards - an amount of SNY proportional to the pro rata shares you had at the end of the previous phase.
To earn rewards you have to keep any of the synthetic assets through the entire staking round.
If you join the staking round once and it finishes, you'll be transferred to the next staking round automatically until you burn all your synthetics. You can claim your rewards every 7 days.
You have to remember that in case of liquidation, your rewards in the current round are being removed.
What if you’d like to withdraw your funds? If you swapped to a synthetic asset other than xUSD, you would have to reverse it first.
Now, when you have xUSD, you can burn your debt. Fill in the amount you want to burn, click the burn button and then you should receive your assets. You’re on the first level of staking again.
To get your funds back, choose the withdraw tab, enter an amount you’d like to withdraw and press the withdraw button.
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