ℹ️ We highly recommend reading the staking details below before staking your tokens.
The goal of staking on Perpetual Protocol is to ensure demand for PERP, while also keeping PERP off the market. This goal exists to provide the ability for the exchange to react in emergency situations, such as extreme market events. Such an event, one example being a severe market crash, could cause the exchange insurance fund to be depleted. PERP tokens will be sold at market to cover any shortfall.
Stakers are compensated for shouldering this risk using rewards. These rewards will be updated over time in order to maintain a healthy number of staked PERP.
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 7 days. (At launch, cooldown was 14 days. This parameter was updated via governance.)
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.
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 These PERP tokens come from the DAO reward pool, and can be withdrawn immediately.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
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.
Vesting rewards (PERP) = 150K PERP - Liquid rewards
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:
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.
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.
Staking is flexible - you may stake for any amount of time. However, when you unstake, a 7 day cool down period will begin. Your tokens will unstake after the cool down period, and become spendable.
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
Go to the staking website after each week.
Rewards will be issued weekly, Monday at 06:00 UTC
Vested rewards unlock 182 days (equal to 6 months) after issue, regardless of when you claim.
Rewards can be claimed any time, and are not affected by unstaking.