$MIN Staking
TLDR: $MIN Staking will commence on October 2nd 2023. $MIN Holders will be able to stake their $MIN for $ADA rewards coming from Trading Fees. Staking periods are 1,3,6 or 9 months with corresponding boosts. If $MIN is unstaked early, all accrued rewards will be forfeited.
Introduction
There has been lots of discussions recently within the Minswap community regarding $MINomics. $MINomics V2 is a series of changes to strengthen the use case of $MIN within the Minswap protocol. The first of these changes was deciding on the future of the Fee Switch. On the 19th of August 2023, a vote was passed to commence redirecting $ADA generated from the Fee Switch towards $MIN Stakers.
Below, you can find the details on the mechanics behind $MIN Staking and its implementation. $MIN Staking will commence on October 2nd 2023 9am UTC.
Implementation
Starting on October 2nd 2023, $MIN holders will have the Option to stake their $MIN in order to receive $ADA rewards generated from the Fee Switch. Every time someone swaps on Minswap, there is a 0.3% Fee, of which 0.05% is the Fee Switch. The $ADA generated through it will be redirected towards $MIN Stakers. Every month $ADA rewards for the entire month will be accumulated and then distributed the month after. This is similar to how $ADA rewards are distributed to LPs currently.
On August 21st, the previous mechanism that zapped $ADA from the Fee Switch for $MIN/$ADA LP Tokens was deactivated, so for October $ADA rewards accumulated from August 21st to September 31st will be distributed to $MIN Stakers.
ADA Rewards being accumulated through the Fee Switch can be seen in the following address:
addr1qx40kyvkgdxtsdladusny09r0vczmlmrsl52sjel528674jj2c79gy9l76sdg0xwhd7r0c0kna0tycz4y5s6mlenh8pqg82qtn
$MIN stakers will essentially “soft-lock” their $MIN for a certain amount of time. It’s a “soft-lock” in that stakers may unlock their $MIN at any time, however doing so early means they will forfeit their accrued rewards. Forfeited rewards from early unstaking are collected monthly and distributed to the $MIN stakers afterwards.
$MIN Staking Rewards
In order to accommodate different profiles, the staking periods will be 1 month, 3 months, 6 months or 9 months. Each period will have a different boost on rewards, so that the longer you stake, the more your rewards are boosted. In the first iteration of $MIN Staking, the boosts will work the following way:
- Staking $MIN for 1 month gives an unboosted $ADA APR
- Staking $MIN for 3 months — gives a 3x boosted $ADA APR
- Staking $MIN for 6 months — gives a 6x boosted $ADA APR
- Staking $MIN for 9 months — gives a 9x boosted $ADA APR
These rewards to $MIN stakers are what is called “Real Yield” meaning they are directly coming from Swap Fees and distributed in $ADA. It doesn’t consist of inflationary rewards, it’s purely coming from organic Trading Volume. That being said, the $MIN Staking system is built in a way where it is possible to add other non-$ADA rewards on top to $MIN Stakers.
Once the staking period is over, the $MIN is effectively unstaked, and you may claim rewards anytime. Remember to re-stake your $MIN if you want to continue getting real yield in $ADA!
In its current iteration, $MIN Stakers will purely have the following 2 benefits:
- $ADA Real Yield coming directly from Trading Fees the platform generates.
- Governance say as any $MIN Holder would have, with the same voting power.
$MIN Stakers currently do not have access to benefits such as reduced Batcher Fees.
How to Stake your $MIN
- First, select one of the following options for staking: 1 month, 3 months, 6 months or 9 months
2. You can select how much MIN you stake. If you would like to stake different amounts of MIN for different periods, you must do each transaction individually. You can see your positions, accrued rewards, and time left for the unlock of rewards.
3. Reminder that unstaking your MIN prior to the ending of the chosen unlock period will mean you forfeit all the accrued rewards.
