Stakbank X Polygon: The scaling solution that will empower Jigstack DAO

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Jigstack

6 min readFeb 24, 2022

Nowadays, many users in the crypto space are doing a lot more than trading digital assets. Today, the industry has witnessed an influx of investors looking into cryptocurrency staking to earn passive revenue or platform rewards across various decentralized finance platforms, optimizing the possibilities available with their assets. Staking is now gradually becoming a popular crypto investment tool, and another way for crypto holders to grow their assets without depleting or risking their initially deposited funds.

Staking requires investors to deposit tokens into staking pools to earn interests, rewards, or both. Each investor’s final accumulated interest or reward depends on the pool’s total number of participants, the total assets staked, and the investment duration.

Several decentralized finance (DeFi) options available in the crypto market launch on the Ethereum network, but the network has its inherent drawbacks for end users. The number of platforms offering these solutions calls for increased integrity, transparency, and trust in the DeFi space, as well as lower fees and easy accessibility. By partnering with Polygon, Jigstack is expanding its trusted, cost-effective, and efficient decentralized finance options, available via its decentralized autonomous organization (DAO) and Stakbank.

What Is Stakbank?

Stakbank is a Jigstack feature that enables governance across the entire Jigstack ecosystem through the STAK native token. Additionally, Stakbank is Jigstak’s staking platform. Through Stakbank, token holders staking their assets can participate in decision-making processes on the platform, receiving rewards generated by applications under the Jigstack DAO umbrella. Stakbank offers high protection and security of all staked assets, as the platform repeatedly audits and tests all processes.

Jigstack: Stakbank and Polygon Integration

Jigstack’s recent partnership with Polygon will considerably improve the ease and cost of the required interaction between the Jigstack community and the Ethereum DeFi network. Across the Ethereum blockchain, Polygon has proven to be the leading platform for DeFi infrastructure development and scaling solutions. Polygon ensures its continued utility by offering developers access to a wide range of solutions that provides security and ease, and with much lower network gas fees than its Ethereum-based competitors.

This integration with Polygon comes with various benefits for the Jigstack community. At the top of this list is the reduced gas fees required for processing transactions and other activities, such as participating in IDOs. This integration will also support more frequent investor token compounding on Stakbank, which will significantly improve each party’s ROI.

Additionally, Polygon provides the Jigstack community with faster transaction speeds, enabling increased platform utilization through more attractive perks for existing and new community members. Polygon will provide members of the community with meaningful savings and earning methods, helping to further drive mass adoption from retail investors looking to get involved in the DeFi space through the Jigstack ecosystem.

Another advantage of this integration is the ease of participation in IDOs. All IDOs on Jigstack’s Lemonade will see seamless participation opportunities, as staking across Ethereum and Polygon will be available on Lemonade. Stakers will also see their corresponding ranks available in the following three tiers:

GOLD = 2,000,000 STAK
SILVER = 500,000 STAK
BRONZE = 100,000 STAK

How to Bridge STAK to Polygon

Bridging STAK to the Polygon chain requires the following steps:

Firstly, set up a Metamask wallet with the necessary STAK tokens
Go to the following URL: polygon.technology/bridge
Select Polygon bridge and click Deposit
In the ‘From’ section, click and type in Jigstack
Input the amount of STAK to move to the Polygon network
Click transfer. A successful transaction will display a confirmation page indicating details of the transaction

Jigstack Longevity Factor and jSTAK

To optimize governance across the Jigstack ecosystem, the development team introduced the jSTAK token, running alongside of the native STAK token. Unlike the STAK token, jSTAK is purely a governance and utility token that is only usable to accrue interests and rewards from staking STAK on Stakbank. Holding jSTAK also helps members of the community to increase their voting power. Furthermore, the token facilitates eligibility for Jigstack’s Longevity Factor (LF), offering even more utility to holders.

Jigstack’s Longevity Factor (LF) introduces a tiered system for investors of all sizes to receive rewards for remaining invested in the Jigstack ecosystem for long periods. LF affords medium to small-time investors access to private sales that were previously unavailable, so investors who stake their STAK for extender periods can earn more value for their tokens. The Longevity Factor is a reward multiplier for stakers on Stakbank. The multiplier system operates based on an 11-month duration with increments for each month staked.

Staking on Ethereum and Polygon ( 3 scenarios)

STAK / jSTAK = tokens on Ethereum
pSTAK / pJSTAK = tokens on Polygon

Following this integration, both Ethereum and Polygon will remain available to users who want to utilize either or both options. In addition, users will enjoy the automatic transfer of their Longevity Factor to Polygon. This transfer is possible through a Stakbank implemented system that allows the platform to read users’ Ethereum LF and rewrite it on Polygon.

A. ETHEREUM — ->POLYGON

While users staking STAK on Ethereum can receive jSTAK for interest and governance, the Polygon network requires staking pSTAK for pJSTAK. People who want to move STAK from Ethereum to Polygon should follow these steps:

Unstake STAK on Ethereum
Bridge STAK to pSTAK
Stake pSTAK (The system will automatically transfer Longevity Factor)
Receive pSTAK and pJSTAK rewards

B. ETHEREUM and POLYGON

The following steps are for stakers already staking STAK on Ethereum and want to stake on both Ethereum and Polygon:

Bridge your desired amount of STAK to pSTAK or purchase pSTAK on Polygon
Stake pSTAK (Automatic LF transfer also happens where applicable)
Receive pSTAK, pJSTAK, STAK, or jSTAK rewards

C. NEW STAKING ON POLYGON

Finally, users who are not staking on Ethereum and want to stake on Polygon should:

bridge STAK from Ethereum →Polygon (you will be able to buy pSTAK at the end of April 2022)
Stake pSTAK
Start Longevity Factor build-up from scratch
Receive pSTAK and pJSTAK rewards by the second month

NOTE:
- NOT NOW — Users can proceed when the polygon pool is open (stay tuned).
- From the opening of the pool on Polygon, a maximum time of 60 days will be given for case A and B — check here

About Jigstack:

Jigstack offers a suite of valuable flagship DeFi products governed as a single Decentralized Autonomous Organization (DAO), positioning the platform to be the DAO of DeFi. Jigstack is a one-stop-shop for everything DeFi, offering an interactive and exciting interface for users. Our platform allows anyone to easily understand each product and interact with it, gaining maximum exposure to the DeFi ecosystem in a safe and effective manner.

About Polygon

Polygon is the leading platform for Ethereum scaling and infrastructure development. Its growing suite of products offers developers easy access to all major scaling and infrastructure solutions: L2 solutions (ZK Rollups and Optimistic Rollups), sidechains, hybrid solutions, stand-alone and enterprise chains, data availability solutions, and more. Polygon’s scaling solutions have seen widespread adoption with 3000+ applications hosted, 1B+ total transactions processed, ~100M+ unique user addresses, and $5B+ in assets secured.

If you’re an Ethereum Developer, you’re already a Polygon developer! Leverage Polygon’s fast and secure txns for your dApp, get started here.