This documentation is under development; updates are coming.
Passive Rewards for Holders
Crypto enthusiasts always seek ways to maximize their holdings and generate passive rewards, and the Staking Protocol offers an opportunity to do just that.
Staking is a system that allows holders to stake their SmartDeFi tokens and earn rewards from their trading volume on decentralized exchanges such as PancakeSwap or Uniswap.
Staking Contract Features
No deposit or withdrawal fees are associated with staking your tokens, although users are responsible for their gas fees.
Staking your tokens comes with the flexibility of No lock-in period, allowing you to stake and unstake at your convenience.
Staking rewards are automatically distributed and compounded, eliminating the need for users to claim and reinvest their earnings manually.
The contract is also upgradeable, requiring no action from users during an update (e.g., unstaking, staking, etc.)
Staking Rewards Source & Distribution
Staking rewards are derived from on-chain trading activities of SmartDeFi projects; they auto-compound and are available to the user at any time.
Also, the project owner can manually inject other token/coin rewards to send to stakers.
Other token rewards are doled out in rounds and subject to a certain accumulation threshold. Developers can modify the accumulation threshold for rewards, which may differ for each type of reward.
- For example, if 1 wBNB is the threshold, rewards disburse when the reward pool accumulates 1 wBNB.
Unstaking or Adding to one's staking pool within the first 30 days of initially Staking will result in a 50% loss of rewards.
- Said forfeited rewards will be then distributed among other stakers.
What is SDSS
After staking, your SD tokens will be deposited into the staking contract, and in return, you will get new tokens called SmartDeFi Stake Shares (SDSS). These shares represent your ownership in the staking pool. Think of SDSS as a receipt from the system to confirm you have staked successfully. You will need to show this receipt to the system for it to let you unstake and give back your SD tokens.
SDSS is not a 1:1 ratio
SDSS updates with each earned token reward
Total SDSS / Total SD = Ratio
It is impossible to transfer SDSS to another wallet
The sacrifice feature was introduced in the new Staking contract per community request for those who wish to help with the burn efforts and decrease the circulating token supply.
Stakers can burn a specified percentage of their staked tokens when unstaking, effectively removing them from the circulating supply.
The percentage you set for sacrifice will apply to the number of tokens you choose to unstake at that moment, whether they are your rewards or your original staked amount. To activate this, you must specify the percentage to sacrifice and the amount to unstake.
At any point before unstaking, you can turn off the sacrifice by setting it to 0% in the Sacrifice settings.