Staking Modules

Modules are areas where users can stake their tokens to earn rewards. Currently, we have two available modules, each designed to distribute performance fees among participants. We plan to add more modules with diverse features in the future.

Performances fees distribution

Every Tuesday, we collect all protocol fees from the previous week and distribute them to investors who have allocated their xST to the Dividends plugin.

Liquid Staking Module with ST tokens

This first module is designed for ST token holders who prefer not to convert their tokens into xST. As a result, it is a "liquid" module, allowing owners to easily deposit and withdraw their ST tokens.

• Protocol fees multiplier: 1x

• Unstaking fee: 0.5% (burned)

Locked Staking Module with xST tokens

This second module involves having xST tokens in your possession (read Conversion / Redemption if you don't know what it is). Owning xST is more restrictive because the owner is not "liquid," but in return, they receive many more benefits. This module is suitable for long-term users:

• Protocol fees multiplier: 3x when staked

• No unstaking fee

• Discount on Social Trade fees

Distribution Scheme

Protocol fees are collected each time a fund manager closes a profitable trade. These fees are then used to buy back ST, the primary and only token distributed to the staking modules (Liquid and Locked).

How are the protocol fees distributed?

Each week, protocol fees generated during the previous week are distributed between the two modules.

For example, if the fees generated during the week total $1,000 and are allocated to stakers, this amount is used to buy ST tokens. The "Liquid" module will receive $250 worth of ST tokens, while the "Locked" module will receive $750 worth of ST tokens. These amounts will then be distributed among the stakers in each module. For instance, if there are 8 stakers in the "Locked" module, they will share the $750 worth of ST proportionally based on the number of xST tokens they have staked.