LPFi Staking (Preferred Shares)
Users can earn protocol revenue via staking LPFi.
Last updated
Users can earn protocol revenue via staking LPFi.
Last updated
LPFi can be staked to earn protocol revenue. The protocol revenue would consist of
Collateral Deposit Fee
PSM Swap Fee
zSOL LP Deposit Fee
10% of zSOL Stability Fee
zSOL Treasury Staking Revenue
Initially, revenue that compounds (PSM Swap Fee, zSOL Treasury Staking Revenue) would remain untouched to encourage growth.
Collateral deposit fee, zSOL LP deposit fee, and 10% of zSOL stability fee would be redeemed every last day of the month and provided to LPFi staking pool for a month. As the total reward amount differs monthly, estimated APR might be volatile.
20% of protocol revenue would be directed to LP Finance Inc. , a maintainer of LP Finance protocol.
In order to prevent short-term holders from earning revenue and purely rewarding long-term holders, unstaking penalty exists.
| Staked Period | Unstaking Fee |
|---|---|
Unstaking penalty is burnt immediately when unstaked. For example, if you staked 100 LPFi but unstaked it in 2 days, you would be able to redeem 90 LPFi and 10 LPFi would be burnt.
After staking, if the user stakes or unstakes, the period is reset to 0 days.
This mechanism concentrates rewards on long-term holders, which would result in higher incentives.
staking period < 7 days
10%
7 days<= staking period < 14 days
5%
14 days<= staking period
0%