This is the guide for staking ESD, a stablecoin token of {ess}. ESS is stablecoin protocol based on basis whitepaper. The staking is a simple two staged process.
First of all, you will need some ESDs. Which you can buy here on Uniswap. Caution: Its always good to check addresses on etherscan given the current slew of fakes.
Now with the ESDs in hand you can do two things :
- Directly Bond ESDs
- Provide liquidity on Uniswap and then Bond the ESD-USDC LPs.
The rewards on both are different. I will explain the methods of both below:
Directly bonding ESDs
To bond the ESDs. Go to the {ess} dashboard. Link here.
Click on wallets.
Click on connect on the upper right corner to connect your metamask wallet.
Your ESD balance will show after connecting.
Click on the deposit button to deposit(Stage) the ESDs. A metamask notification will popup. Approve the transaction.
Your balance ESDs will show in the right of deposits under staged.
The tokens are staged. You will have to bond them!
To bond the tokens click on the Bond button and approve the transaction.
Voila! Bonding the token is completed and you are eligible for rewards.
For taking out the tokens, you have to unbond them first and then unstage them to get back in your wallet. The two stage process is an anti-dumping measure. You can only stage your tokens after an epoch as passed. (8 hours between epoch). This sets a time lag for receiving the reward against anyone dumping, also everyone can see the total staged tokens and get an idea of incoming liquidity.
Providing liquidity on Uniswap and then Bond the ESD-USDC LPs.
After getting your hands on ESDs, you choose to provide liquidity to the Uniswap pool here. In return you get the LP tokens.
Again, you go to the {ess} dashboard. Link here
This time you click on the LP rewards option.
Here you will again find options for bonding and staging.
This is also a two step process like bonding the ESD tokens directly. Here first you have to deposit and stage LP tokens and then bond them and Voila! you are eligible to earn rewards every epoch.
Rewards
Now we come to the main question. What is reward for doing all that? What is the APR? I will explain rewards in both the cases one by one below.
- Rewards from Bonding ESD
All the ESDs bonded are automatically rewarded with the future supply expansion and also can take part in the DAO. The expansion depends on the price of the ESD take through Uniswap oracle on the pair ESD-USDC. In the initial bootstrapping period, the ESD expands 10% in each epoch(8 hours). All the ESDs are automatically rewarded with the 10% increase. At the time of writing this 42 epochs remain. That gives APR of about 5400% for the 14 day period.
2. Rewards from Bonding LPs
Rewards from bonding LPs is a little bit different. During the bootstrapping period, 5% of the expansion supply is rewarded to LPs. That means every epoch around .5% of the total supply is given to LPs as reward. So the reward depends on how many token supply is in the LP pool. At the time of writing, the pool has around 2% of supply which gives 25% Return every epoch(8 hours).
Conclusion
The final goal is to bring ESD to near dollar price; Thats why the high emission rate. At the end of bootstrapping period, the total supply should be around 5 Million. The two stage process is a novel way to reward holders and set market expectations. Would love to see how crypto community takes this project.
Github Repo: https://github.com/emptysetsquad/dollar
Dashboard Github Repo: https://github.com/emptysetsquad/dollar-dashboard
Whitepaper: https://github.com/emptysetsquad/dollar/blob/master/d%C3%B8llar.pdf
Dashboard via IPFS: https://gateway.pinata.cloud/ipfs/QmQa6AFnREJmx59utDBNsaWASTLFX3BeKzy8seFmJR6qZE/#/
ESD Token Contract: https://etherscan.io/token/0x36F3FD68E7325a35EB768F1AedaAe9EA0689d723
ESD-USDC Uniswap Pool: https://uniswap.info/pair/0x88ff79eb2bc5850f27315415da8685282c7610f9