$SOLACE Staking V2 is Live!
Staking V2 is live on Ethereum Mainnet, Aurora, and Polygon! The new staking mechanism introduces governance rights to $SOLACE token holders and multipliers to long-term stakers. Here’s how you can get started staking your $SOLACE on V2.
In this new update, we’ve introduced “safes”, which are locks that stake your $SOLACE for a set period of time. Locking introduces multipliers to both your voting power and staking rewards. When creating a safe, you must choose:
- the amount of $SOLACE you’d like to deposit from your wallet, and
- the length of the lock time.
If you select a deposit amount with lock time, you will receive the a multiplier on the regular APY based on the length. For example, in the screenshot below, you can see a multiplier of 1.7x for 1 year of locking.
Like we mentioned in our previous announcement article, there will be two multipliers in play. One will be specific to governance voting power, and the other will be specific to staking rewards.
If $SOLACE is staked (made to $xSOLACE) and locked, the $xSOLACE multiplies up to 4x at the max lock duration of four years and linearly decreases based on lock duration. This rewards long-term locked stakers with more voting power:
- 1 $SOLACE staked and unlocked = 1 $xSOLACE
- 1 $SOLACE staked and locked for four years = 4 $xSOLACE (3 more votes than unlocked)
Similarly, locking $SOLACE will award a staking rewards multiplier up to 2.5x at the max lock duration of four years and linearly decreases based on lock duration.
- 1 $SOLACE staked and unlocked = 1x multiplier on rewards
- 1 $SOLACE staked and locked for four years = 2.5x multiplier on rewards (get 2.5x more $SOLACE than unlocked)
The new Staking APY will be based on token distribution from the DAO treasury. $SOLACE tokens will be distributed by the second, with 10 million $SOLACE given each year. We chose this number because we want to give enough $SOLACE to create a strong starting APY, but we also don’t want to distribute too much $SOLACE from the treasury so that token distribution can’t be done long-term. Nevertheless, the distribution of tokens is adjustable by governance.
Rewards distribution will begin 6PM UTC / 10AM PST to give as many stakers a chance to get informed and onboard.
Create Multiple Safes
If you’d like lock $SOLACE to take advantage of the multipliers but don’t want to lock all of your tokens for one lock time, you have the ability to create multiple safes, each with different multipliers and lock times.
$SOLACE stakers can participate in governance through our Snapshot. Moreover, users can participate in discussion on our forums site. We encourage using the forums page as a place to formally discuss potential proposals with community members.
Migrating from V1 Staking
If you already have your $SOLACE staked to $xSOLACE in V1, you now can migrate your SOLACE into Staking V2 . To do so, go to the Stake tab on the website, and select Staking V1. From there, you can choose to either:
- Unstake the balance, and create a new safe in the Staking V2 tab or
- Migrate the balance into a new safe.
NOTE: If you migrate all your $SOLACE, it will go into one safe. If you are interested in creating multiple safes with your $SOLACE, we recommend unstaking first, then creating new safes in the Staking V2 tab.
If you were a capital provider before the token launch, you have the option to exercise your options early, so long as the $SOLACE is staked and locked with an end date of the vesting period of May 2022. To do this, go to the Invest tab on the website, choose the token to buy your options, approve the transaction, and redeem rewards. These rewards will now be in their own lock until the vesting period is complete.