How to stake on Blindex
(The complete guide)

Published in

blindex.io

8 min readFeb 28, 2022

Blindex multi-currency stablecoin platform lets anyone on the planet mint, redeem, swap, trade, and invest without the need to be exposed to forex when getting in or out of a trade.

We’re currently supporting two stablecoins: BDUS (USD-pegged stablecoin) and BDEU (EURO-pegged stablecoin), and soon we will be adding more stable currencies to the mix.

In this guide, we will explain how can you get your first Blindex stablecoins (mint or swap), provide liquidity for the market, and stake it in return for rewards.

Why should you participate in liquidity-providing and staking activity?

Liquidity rewards - When you take part in liquidity providing (LP), you enable the community to swap and trade between the two tokens in the pair you provided.
Every time someone swaps between tokens in this pair, they pay 0.3% fees. These fees are being proportionally distributed between the pool liquidity providers.
Staking rewards - When you choose to Stake your LP token, it means you are in it for the long run and happy to provide this liquidity over a course of 0–10 years.
For doing so, you will be rewarded with BDX tokens (the protocol’s utility and governance token), the longer you Stake the bigger the bonus will be.
Community support - by contributing to the liquidity pools you help the Blindex community grow and achieve greatness. If you believe in the future of DeFi and multi-currency stablecoins, this is how you can translate your enthusiasm into (a rewarding) action.

This is how you do it

Preparing the ground
Blindex is operating on the RSK network, this means you would have to add the network to your wallet and make sure you have RBTC tokens (RSK native Bitcoin tokens) so you could pay the RSK’s gas fees + RBTC/ETHs (ETH equivalent on RSK) to use for your Mint/Swap/LP/Stake activity (you can also use XUSD but currently only on limited pairs/activities).

1.1 Connecting your wallet - Open the Blindex app and it will connect it for you. Just press the ‘Connect Wallet’ button on the right side of the screen.
1.2 Getting your hands on RBTC — There’s a longer post explaining it here but a quick shortcut would be to move your BUSD/ETH from the BSC network to the RSK network using the Sovryn bridge. When you do so you should get a tiny amount of RBTC as a “gift”. This will allow you to start doing swaps from your token on RSK to RBTC/ETHs. Please note it can take up to an hour to see the RBTC airdrop on your wallet.
Other options are to buy it directly on supported centralized exchanges, like Kucoin or Bitfinex, use Liquality wallet and their atomic swaps feature, or bridge your Bitcoin using FastBTC by Sovryn.
In any case, make sure you always have enough RBTC to pay gas fees for any other activity on the network (in Blindex or outside of it).

2. Get your Stake Pair ready

2.1 Choose — take a look at the available stake pairs (on the staking tab) and decide what you want to stake:

At this point - you can choose to either Swap tokens or Mint new ones (Minting/Redeeming functions are more useful when you’re looking to perform a large transaction, that if done as a regular swap would cause significant slippage and a sub-optimal price outcome for the purchase. On the other hand, the Swap function is more useful for smaller transactions, relative to the size of the pool, especially when you don’t want to deal with the underlying BDX collateral and just want to swap token A to token B).
If you choose to swap you can simply use the Swap tool and jump straight to section 4 of this guide. If you choose to Mint continue following this guide:
2.2 Swap some of your RBTC/ETHS to BDX (you would need it in order to mint the BDEU/BDUS stable coins). If you want to understand how much you would need, you can go to the Mint window and simulate the mint you want to do and see how many BDX would you need.
In this example shown below you would need 1.7314 BDX if you want to mint 100 BDUS using RBTC (note that this is changing all the time):

*If you want to stake a pair that has BDX you would need to swap more BDX.*

In order to see these new tokens on your wallet, you would need to import them (see import instructions at the end of this guide.)

3. Mint and Redeem

Mint and Redeem are part of the core functionality of the platform that enables the adding and removing of BD-Stables into/from circulation, as well as keeping their price stable (relative to the respective peg).

Mint is the process of creating new BD-Stables in exchange for an equivalent amount of collateral (BTC/ETH in Blindex), essentially generating new stable tokens whose price is pegged to a specific currency like Euro, USD, etc.

Redeem is the process of burning your stable tokens (removing them from circulation) and getting the collateral in return.

Mint & Redeem will always be calculated according to the peg, so no matter what is the price in the market, you can always Mint and Redeem according to the 1:1 peg ratio

3.1 Mint the stable tokens you need — if you chose the ETHs/BDEU pool, for example, you would need to mint new BDEUs, equivalent to roughly ½ of the stake you want to perform (e.g If I want to stake $5,000 I would need $2,500 in BDEU and $2,500 worth of ETHS/RBTC/BDX)

Choose the Token to be minted (BDEU in this case)
Enter the Amount to be minted ($2500 in this case)
Choose the preferred collateral (ETHs in this case)
The amount of BDX needed will be calculated automatically (and if you followed 2.2 you should now have enough of it in your wallet)
Click Mint

4. Provide Liquidity

Now that you have all the tokens ready, you can use them to provide liquidity to the pool (meaning you them to the pool of existing tokens so more swaps could be done using this pool).

Simply go to the Liquidity Pool tab, choose your tokens and add the liquidity:

Once you do this, you would see a new token in your wallet that represents this pair (LP Tokens).

like this:

From this point on, every time someone uses your pool to make a swap you will proportionally participate in all the swap fees earned by this pool. You can exchange/redeem (remove liquidity) at any time.

If you want to increase your rewards you would have to stake your liquidity pair. You can choose to leave it unlocked or lock it for a specific period of time (Locking up your liquidity for a longer period of time will provide you with bigger bonuses on your staking).

Note that you can always lock an unlocked stake, but you won’t be able to redeem a locked stake before the end of the lock-up period. Having said that, your rewards will always be claimable (subjected to a vesting period, see section 6 of the guide).

5. Staking

Go to the staking tab, choose your pair, and select stake :)

After selecting the pool, you need to select the amount of LP tokens you want to stake (out of the shown balance) and the Lock-up period:

6. Claiming rewards

You can view your rewards balance under ‘My staking’:

You can claim the rewards at any given time, however, note that in order to protect the BDX holders and Blindex investors, the rewards will be split as follows:

When you claim it, 10% of it goes to the treasury as tax fees.
10% of the remaining rewards are claimed immediately (going straight to your wallet)
The other 90% are vested for a period of 9 months and are slowly being released every minute.

For example — if you have 50 BDX Claimable rewards, 10% of it (=5 BDX) will go back to the protocol, 10% of what’s left (=4.5 BDX) will go to your wallet, and the rest (40.5BDX will be vested for 9 months).
You can track your vested rewards under the “Vesting Schdeule” tab:

Note: every time you claim your available rewards you create another item on the vesting period table. When you claim the available vested rewards you pay the gas fees for each such item/row. Take that into consideration before you claim the rewards on a daily basis ;)

7. Redeem your Stablecoin

When using the Redeem functionality you would need to pay attention to the Effective Collateral ratio. This ratio will be the ratio of which the collateral (in the form of RBTC or ETHs) and BDX will be received.

For example, in the screenshot below the Effective Collateral ratio is 89.54%. This means if I choose to redeem $100 worth of BDUS, I will get $89.54 worth of RBTC and $10.46 worth of BDX (less the 0.3% redemption fee).

Other — Importing Tokens:

In order to add Blindex and RSK tokens to your wallet, you can go to either Swap or Liquidity Pool tabs and press the Choose Token (A or B doesn’t matter)