Staking on Savmswap
Last updated
Last updated
The default staking period for SAVM tokens is 14 days. Users must lock their tokens for this duration to be eligible for rewards.
The reward for staking SAVM tokens is determined by the total trading fees generated in the SAVMSwap protocol. These fees are distributed among the stakeholders proportionally to their staked amounts.
Upon staking SAVM tokens, users will be issued eSAVM tokens. These tokens serve as a representation of the staked SAVM and may have additional utilities within the ecosystem. Please note:
1. Transfer Limitations: The transfer functionality for eSAVM tokens is currently restricted. Users should be aware that they might not be able to transfer eSAVM tokens freely during this initial stage.
2. Future Utilities: More utilities and features of eSAVM tokens will be revealed in the future. Stakeholders are encouraged to stay informed on updates and new developments.
Withdrawing SAVM tokens before the end of the staking period (14 days) results in specific penalties:
1. Loss of Rewards: Users forfeiting their staked tokens before the 14-day period will lose all rewards that would have been earned during the staking period.
2. Slashing of Staked Tokens: In addition to losing rewards, users who withdraw early will also suffer a slashing of their staked SAVM tokens. The amount slashed follows the formula:
Where:
(y) is the amount of SAVM tokens slashed.
(x) is the total amount of SAVM tokens initially staked.
(k) is the number of days the tokens were actually staked (before early withdrawal).
Participants interested in staking SAVM tokens must adhere to the stipulated staking period to reap the full benefits and avoid penalties. Early withdrawal of tokens results in significant penalties, including the loss of rewards and slashing of the staked tokens. Users are encouraged to commit to the full staking duration to maximize their returns from the SAVMSwap protocol and to take advantage of future utilities and functionalities of eSAVM tokens.
Staking in Savmswap allows participants to earn rewards and support the platform. It's important to recognize that staking on Savmswap is separate from holding the SAVM governance token for SatoshiVM. Stakers contribute to Savmswap's liquidity and efficiency, playing a crucial role in the platform's ongoing operation.
Wallet Integration: Connect with a compatible wallet to interact with Savmswap.
Staking: Access the staking feature on Savmswap and follow the instructions to stake your tokens.
Earning Rewards: Earn rewards from the protocol fees, providing an incentive for supporting Savmswap.
Market Risks: Stakers should be aware of market risks, including price fluctuations.
Platform Risks: Engaging with any DeFi platform involves risks, such as smart contract vulnerabilities.