Single Sided Staking (Phase 2)
Last updated
Last updated
Single-Sided Staking, or also called "single asset staking" is a mechanism that allows users to earn staking rewards without having to provide a second token. This simplifies the overall staking process and reduces the cost of participation. In other words, Single-Sided Staking requires users to hold only one type of token to participate in the staking process. Further, this means that impermanent loss is being omitted as we are only dealing with one type of currency. This makes it easier for users to adjust their investment strategy and react to changes in the market. Single-Sided Staking is here to keep things simple, and efficient.
$HELI is the main token of the HeliSwap DEX and its usage is deeply enrooted within the platform. As such, we have launched a Single Sided Staking (SSS) pool, where users can stake their $HELI tokens and earn $HELI rewards. But it doesn't stop there - HeliSwap's SSS comes with several features:
Flexible Staking
Lock mechanism for Single Sided Staking
Voting Rights for the DAO
For those that have been around for a while, this can be considered "SSS Phase 1". The Platform allows you to felxibly stake in and out of the SSS Pool on HeliSwap while acumulating claimable rewards. The % APR mimics a yield farm in that it is dynamic and adjusts to the overall staked amount. Users may deposit and withdraw tokens at will.
HeliSwap offers the ability to "lock" your staked $HELI stokens from the flexible staking pool for a predetermined amount of time (min. 3 week, max. 1 year). Activating the lock on your position will earn a static APR on top of the dynamic APR from flexible staking. Static means, that the APR remains constant regardless of how many users and tokens benefit from the lock.
Only the Lock APR is static for the lock duration. The Dynamic APR of the Flexible Staking may still change depending on TVL (can go up or down) even while you have locked.
Once the lock has been activated, the flexible staking position becomes locked until the lock expires and cannot be removed prematurely. We do understand, that some users may want to adjust their lock and increase their stake however, which is why adding more tokens to the lock and expanding the lock duration are two added features you can benefit from, even when the lock is active.
The total amount of $HELI that can be locked at the same time is limited to 15,000,000 $HELI !
The advanced SSS mechanism, both for Flexible staking and the lock, call several contracts for their execution as they are also tied in with the DAO. The HeliSwap community should not be opelled from participating in either mechanism, which is why an extra Transaction Fee compensation has been added as a 1% APR. This should more than compensate any incurred transaction costs.
While the lock is active, only "flexible staking rewards" can be claimed. "Lock rewards" are only claimable after the lock has expired. If you let a lock expire and enter a new one, you can claim the rewards from previous locks.
Flexible Staking and locking both grant voting power for the DAO and allow you to actively participate in HeliSwap's governance by creating proposals and voting on them. In order to participate, users need to earn the so called "voting power" which can be obtained ONLY through above mechanisms:
| Mechanism: | Voting Power: |
|---|---|
Flexible Staking: | Direct 1:1 representation. Each staked $HELI = 1 Voting Power |
Lock Mechanism: | Multiplier to Flexible Staking voting power proportional to lock time. 1 Year = 2X |
Lock Mechanism Voting power is only granted while the lock is active. Once the lock expired, the multiplier expires too.
HeliSwap included very detailed and thorough "tool tips" next to all items on the SSS Phase 2 website. Please take the time to read through them to make sure you understand everything and make a comfortable decision before you participate.
