Staking on DefiPlaza

There are currently two staking programs running on DefiPlaza. You can:

Stake XDP2 to receive DFP2

Anyone who provides liquidity to the StablePlaza pool can stake their XDP2 liquidity token in return for DFP2 token rewards. The liquidity can be provided in any of the listed tokens on the exchange. No need to first buy DFP2 and then provide it as liquidity.

You can stake in two steps:

  1. Allow DefiPlaza to use XDP2 in your wallet
  2. Add the entered amount of XDP2 to the staking contract

You can claim the rewards, or withdraw your staked tokens at any time.

The liquidity rewards program starts on October 6 2021 and will end on October 5 2022, gradually giving out fewer rewards.

DFP2 is hard-capped at 67.7 MM tokens.

Anyone who wants can also stake their received DFP2 on the StablePlaza pool.

Stake DFP2 to receive XSP

Anyone who wants to can stake their DFP2 governance tokens in return for one-third of the generated StablePlaza trading fees, which will be distributed to all DFP2 staked

This new staking program is the first real utility added to DFP2! And it won’t be the last.

As an extra feature holders can voluntarily lock their DFP2 for a period of up to 180 days to increase their cut of the fees. Without locking the cut is 1x for each DFP2 staked, with voluntary locking that cut can go up to 3x. 

With the voluntary locking, DFP2 holders are rewarded for removing their liquidity from the market for a certain amount of time, decreasing the price volatility of DFP2 in the process.

At any given time, with or without locking the DFP2, holders can claim their rewards. Rewards are minted in XSP, the liquidity token of the StablePlaza pool, and can be converted into any of the four stablecoins in the StablePlaza pool.

That means the DFP2 staking rewards are in stablecoins!

Let us explain that with an example.

Say 30,000 USD is generated in fees on the StablePlaza pool. One-third of that 30k is reserved for the staked DFP2. Let’s also say 100,000 DFP2 is staked by DFP2 holders. The 10,000 USD of generated fees will be divided over the 100k DFP2. If you staked 10,000 DFP2, you would receive 10% of those fees, which is 1,000 USD. 

That is if nobody locked their DFP2.

The calculation becomes a bit more complex with the locking. Say one holder added 10,000 DFP2, which would be 10% of the total staked DFP2, and locked their DFP2 for the full 180 days, receiving the 200% bonus. If nobody else locked their DFP2, this holder would receive (DFP2 + bonus) / (total DFP2 + bonus) =  (10,000 + 20,000) / (100,000 + 20,000) = 25% of the generated fees, which is 2,500 USD.

Please note that when removing staked DFP2 you will receive 0.09 DFP2 less than initially staked due to the inner workings of the StablePlaza pool.