Staking
ℹ️ We highly recommend reading the staking details below before staking your tokens.
xDai The Perpetual Protocol staking pool is on Ethereum mainnet (not xDai). If you have PERP on xDai, bridge it back to Ethereum before staking.
BSC 1) PERP on BSC or 2) PERP transferred from BSC to Ethereum cannot be staked. If you have PERP on BSC, deposit it back into Binance and withdraw from Binance directly to Ethereum before staking.
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.)
Staking will remain in Stage 1 (below) until protocol v2 staking is launched. V2 staking is expected to launch later in 2021.
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 These PERP tokens come from the DAO reward pool, and can be withdrawn immediately.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.
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 -- let's say 2,500 PERP (assuming PERP price is $10). This amount of PERP is then given to stakers proportionally from the Perpetual DAO rewards pool, as liquid rewards (claim and use right away).
To calculated vesting rewards, we then subtract the amount of liquid PERP rewards from the total weekly rewards (150k PERP). So in our example, 150,000 - 2,500 = 147,500 PERP. These PERP are then distributed proportionally to stakers, and locked for 6 months. Vested PERP can be claimed & spend 6 months after issue.
Stage 2 is on hold during development of Perpetual Protocol v2. Please watch our Twitter for further announcements in the coming weeks.
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.
Important Notes
Your PERP tokens will not earn staking rewards during the cool down period.
If you stake any amount of tokens during a cooldown, all tokens in cooldown will be restaked.
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.
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.
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.
