Good day to everyone,

💰DAO FINANCE STAKING & REWARDS 🏆 UPDATE

Staking is the process of locking up an asset in a staking program, in our case Smart Contract, and earning risk-free interest on staked funds. Unlike Liquidity Mining, where staked assets are subject to potential risk due to market volatility and impermanent loss, staking provides predictable returns regardless of underlying market conditions.

💥DAOFIN 1.0.0 will bring two basic types of staking:

✳️ Direct Staking
✳️ Accumulative reward staking


🏦 Direct Staking

Direct staking represents the direct lockup of assets in a staking contract. There will be four staking smart contracts with different lock periods. The user will be able to choose at what "Period" staking contract to stake their tokens. There will be a fixed number of tokens distributed towards each staking contract once the contract is launched. As a rule of thumb, the longer the lockup duration, the higher yield will be provided. Lockup durations are as follows:

1️⃣  3 months lockup
2️⃣  6 months lockup
3️⃣  12 month lockup
4️⃣  24 months lockup

These contracts will act as "open door" contracts allowing new participants' entrance throughout their whole duration, meaning that some users might enter the "6 months lock" contract with 3 months already elapsed. The reward that the individual participant is entitled to is a function of two variables:

✅ The share of the total staked the user provides
✅ The duration for which the miner has provided liquidity for

🏦 Accumulative reward staking

Accumulative or compounding reward staking is a unique feature developed to further promote funds retention and provide users with a fully automated ability to gain increased APY by automatically staking their earned rewards. This concept is similar to the functioning of many popular index funds in traditional finance with "ACC" or accumulation designation as income earned on your investment is automatically reinvested. Accumulative rewards staking will be initially supported for two primary products:

📈Accumulative staking of Liquidity Mining rewards
📈Accumulative staking of Direct Staking rewards

All users participating in our Staking and Liquidity Mining Campaigns will be able to choose via our UI whether they want to receive their rewards directly or stake them in staking smart contracts for additional gains.

🔥🔥Single-sided Liquidity Provisioning

One of the core and most requested features coming with DAOFINANCE 1.0.0 is Single-sided Liquidity Provisioning (SSLP). In traditional Liquidity Provisioning (such as our own Liquidity Mining program), participants must provide liquidity in the form of all assets the liquidity mining pool consists of. For example, in ALBT/ETH pool, the user has to provide both ALBT and ETH. While these pools are often lucrative and provide many benefits to their users, they may be unsuitable for many users because:

🔸Users bullish on a particular asset might not have sufficient capital to match their favourite holding's size and are forced to either sell half or get additional funds.
🔸The volatility of both assets increases the risk exposure of users and Impermanent Loss.
🔸Other assets in the pool are not appealing to the user, and they are not willing to have exposure to them.
🔸Stablecoin pairing in some pairs is not ideal in the current macro market trend.
🔸The user wants to maximize the potential upside potential by being exposed only to a specific asset

Single-sided liquidity provisioning will allow users to provide any supported asset, be it ALBT, ETH, Stablecoin, or token, and enjoy liquidity mining benefits whilst avoiding the aforementioned issues while enjoying the benefits of our upcoming Impermanent Loss Protection (to be discussed in future article).

📌How does Single Sided Liquidity Provisioning (SSLP) work? and More details on Medium Article

https://dao-finance.medium.com/daofin-1-0-0-staking-67f5773feb98

Twitter | Telegram Chat | Website | Ann Channel | Medium