Staking

Have questions or thoughts about staking? Come to our Discord! http://discord.perp.fi/

ℹ️ We highly recommend reading the staking details below before staking your tokens.

The Perpetual Protocol staking pool is on Ethereum mainnet (not xDai).

Staking period

You may stake for as little time or as much time as you wish. When you want to unstake, there is a cool down period of 14 days.

Staking rewards

Stage 1 (beta)

Initially, 150k PERP will be granted as staking rewards each week. Rewards will be issued in 2 ways. Rewards are issued from the Perpetual DAO rewards pool.

🌊 Liquid PERP rewards

Weekly exchange fees will be calculated, and 50% of this US dollar amount will be distributed proportionally as PERP to stakers. These PERP tokens come from the DAO reward pool, and can be withdrawn immediately.

Liquid rewards (PERP) = weekly USDC exchange fees * 50% * (1/PERP price*)

*PERP price will be 24h TWAP from Coingecko at time of calculation

🦺 Vested PERP rewards

Vesting rewards will be distributed proportionally to stakers in an amount equal to the weekly reward pool (150K PERP) minus the weekly liquid reward amount. Rewards will be given in PERP tokens from the DAO reward pool, and will be vested after 6 months.

Why 6 months?

PERP rewards are vested after 6 months to ensure stakers are serious investors who care about Perpetual Protocol and are not just looking for a quick return. This is needed because PERP holders can also vote on protocol governance and it’s important that they have the best interests of the protocol in mind while voting.

Vesting rewards (PERP) = 150K PERP - Liquid rewards

Example Liquid rewards are given based on trading fees collected by perp.exchange for that week. So let's say 50k USDC in fees are collected. We take half that number - 25k USDC, and calculate how many PERP it would be based on the exchange rate at that time. This amount of PERP is then given to stakers proportionally from the Perpetual DAO rewards pool, as liquid rewards (claim and use right away). We then subtract that amount of PERP from the total weekly rewards - 150k PERP. So in our example, 150,000 - 25,000 = 125,000 PERP. These PERP are then distributed proportionally to stakers, and locked for 6 months. You can claim anytime, but only transfer & spend 6 months after issue.

Stage 2

Research in partnership with Delphi Digital is ongoing to determine the best way to share trading fee rewards (USDC) with stakers in a way that ensures long term system stability.

Currently we have identified two goals we believe need to be met before trading fee sharing can begin:

  1. A minimum ratio between value of funds in the Insurance Fund and the total open interest (sum value of all open positions) on the Perpetual Protocol DEX. Currently this ratio has been set at 5% (value of the Insurance Fund must be at least 5% of the open interest). We are continuing to research this risk model and will share our findings and developments as they become available.

  2. Enough time, testing and auditing have passed that the Perpetual Protocol team has a very high degree of confidence in the integrity and stability of the protocol smart contracts. This second goal is already well under way but more time is needed to establish the level of confidence we feel is necessary for critical financial applications.

Cool down period

Staking is flexible - you may stake for any amount of time. However, when you unstake, a 14 day cool down period will begin. Your tokens will unstake after the cool down period, and become spendable.

Your PERP tokens will not earn staking rewards during the cool down period.

Rewards calculation

Rewards are calculated each week, and your proportion of the staking pool is calculated per minute (not per block). Because of this, early entry into the pool does not give you any disproportionate benefits.

Calculation period PERP and trading fee rewards will be calculated weekly: Monday 00:00 UTC - Sunday 23:59 UTC

Calculation time The rewards will be calculated and issued weekly: Monday at 06:00 UTC

Rewards are calculated weekly, so your REWARD numbers will not increase until after the calculation every Monday.

Reward claim process

  1. Go to the staking website after each week.

  2. Rewards will be issued weekly, Monday at 06:00 UTC

  3. Vested rewards unlock 182 days (equal to 6 months) after issue, regardless of when you claim.

  4. Rewards can be claimed any time, and are not affected by unstaking.

The big top number under PERP Reward is unlocked and spendable right away, while the small number (0.00 Vesting) below are locked rewards that will vest after the vesting period.