In this tutorial, we are going to give you an overview of our IDO Staking Application and what it means to be holding and staking XAVA on the platform. In summary, XAVA stakers are rewarded in four ways:
- Allocation in IDOs (optional)
- Ecosystem Rewards
- Deposit Fees
- Allocation Fees
Unlike many other launchpads, 100% of the fees collected are distributed back to stakers, in addition to single-sided staking rewards.
You can think of this like single-sided staking (no impermanent loss), launchpad allocations and earning network fees, all rolled into one. Even if you can’t participate in sales, there is still plenty of reason to hold and stake XAVA.
As soon as you stake, you start earning XAVA, and those earnings contribute directly toward your allocation power in the system. With the maximum cap in place, it means allocations are fairly and broadly distributed, while large holders are still rewarded relative to their stake. As a result, we have a balanced economy that rewards both large and small holders.
IDO Staking Instructions
- Navigate to the IDO Staking Application
- Click the Allocation Staking button at the top of the page.
3. Deposit your XAVA and confirm the transaction.
Staking begins at 8/31/2021 at 6:00 p.m. (UTC).
That’s it! You are now staking for allocation in our sales! For a full review of the platform and its features, see below.
The IDO Staking Application
Staking for IDO allocation, ecosystem rewards and platform fees all happen in one place. Simply stake, earn alongside the growth of the platform, and take allocations you are interested in.
Allocations are optional and require registration.
1. Deposit XAVA
A 2% fee is deducted from each new stake deposited on the platform.
100% of this fee is immediately redistributed to all other stakers, in proportion to their XAVA staked (excluding the user who is paying the fee).
Bear in mind, after paying your deposit fee, you will now earn on the fees of those staking after you. Your earnings will be based on the size of your stake relative to other stakes in the platform.
Over time, this 2% (and more) will be returned through accumulated platform fees and rewards.
2. Compounding XAVA
As you accumulate earned XAVA, you will need to harvest and deposit them into the staking contract in order to have them count toward future allocations and your share of the platform fees and ecosystem rewards.
In order to cut down on time and cost, the platform has a built in compounder.
To use the compounder, simply click the “Compound XAVA” button and confirm your transaction.
Since this counts as a new deposit, it will incur the 2% fee, and be redistributed to all stakers.
More on Platform Fees
There are two fees to be aware of when using the platform. These fees are not taken by Avalaunch, but redistributed to XAVA stakers.
- Deposit Fee* (2%) — This fee is designed to ensure existing XAVA stakers are protected from dilution by new stakers. A staking fee is collected whenever new XAVA is staked. Staking fees are sent to the Staking Rewards contract, which distributes the collected tokens to stakers, relative to their stake.
- Allocation Fee* (2%) — Should you decide to claim an allocation, a fee of 2% fee of your allocation will be collected in XAVA and also distributed to XAVA stakers. For example, a $100 allocation would exact a $2 fee paid in XAVA. This fee not only promotes more thoughtful participation, but supports smaller stakers and individuals who can’t, or don’t want to, participate in sales.
These fees ensure a properly incentivized network and allow for some unique characteristics of the launchpad:
- Even with a maximum per person allocation in place, there is still a reason to accumulate hold and stake XAVA.
- You don’t need to KYC or participate in sales to earn from the platform.
- As Avalaunch grows larger, so do XAVA staker’s holdings.
Over time, even small stakers will earn enough in the network to become more meaningful participants — meaning more relative stake and allocation power. XAVA from the whales who claim allocations is redistributed into the hands of everyone else, leveling the playing for the entire system.
*Fee amounts will be monitored over time. They are not set in stone and can be adjusted, in either direction, if needed.
