MamaPool — A High-Performance Staking Pool on Moonbeam
StakeBaby has launched MamaPool on Moonbeam, a staking pool that offers stakers the following advantages over protocol staking:
- Zero fees. Forever.
- Automatic Return Optimization
- Automatic Risk Diversification
- Shorter undelegation periods on average
- Higher APR on average
- No delegator kick-out risk
- No inactive/offline collator risk
We are currently bootstrapping the pool and offering a 30% APR for the first 1M GLMR. The pool will stop accepting deposits once it hits the target, so you can be sure that if your delegation went through, you are on the 30% APR.
Why make a pool?
If you have been staking on Moonbeam for a while, you are probably already aware of a few pain points.
Dude, where are my rewards?
Staked your tokens and stopped receiving rewards? One of many things might have happened. Your delegation might not be in the top 300 delegations for the collator you chose, or, your delegation went below the 350th delegation and it was kicked out. Your collator may have left the active set. Your collator may be down (collators have gone offline for up to 3 weeks). Go figure!
Dude, why am I making less?
In Moonbeam, you earn more staking rewards when you stake with collators with less total backing. If your collator’s total backing increases a lot, you will make less. In some extreme cases, delegators found themselves earning 3x less because a whale happened to bond with their collator. Bad luck!
How does MamaPool solve the above problems?
Pool delegations are always active, no matter how small, since the pool is not subject to the 300-delegators protocol limit.
MamaPool is made of a set of smart contracts and an offline bot that is programmed to manage delegations automatically and efficiently 24/7. the pool diversifies its delegations among several collators, lowering the impact and risk of offline or kicked-out collators. It also allocates funds dynamically based on expected collator APR. StakeBaby is the #1 source for collator performance intelligence so you can count on us having the right data for the job.
How do I stake through MamaPool?
You deposit 20 GLMR in the pool through Metamask.
You receive 20 mamaGLMR in your wallet. These are transferable within Moonbeam, like any ERC20 token. Say that you decide to keep them.
Two months later, you decide to exchange your mamaGLMR back to GLMR.
You deposit 10 mamaGLMR to the pool, and you get back 21 GLMR. Your underlying GLMR balance grew while you were holding your mamaGLMR by accruing staking rewards.
Sound simple! Is it risky?
Delegating and undelegating are very similar to how you normally delegate through the Moonbeam app. However, in this case, instead of interacting with the Moonbeam protocol (the bios), you are interacting with the Moonbeam EVM (the windows). Therefore, when you delegate through a pool like ours, you need to trust that both the Bios and Windows work well. Ok! Maybe I shouldn’t have used Windows as an example, but you get the point ;-)
Cool, but how does it work?
MamaPool achieves an elegant balance of power, flexibility, and security.
When we first set out to make a pool, we were struck by how complicated the pool could be. The objectives of the pool are relatively straightforward, that is:
- Maximize rewards
- Minimize undelegation period
- Allow to easily exchange one for the other
Optimizing for the above would demand perfect knowledge of future events and a Quantum computer, so this is definitely not a task for a resource-limited, reality-ignorant smart contract. Therefore, we decided to decouple the delegation business logic from the smart contract and keep it off-chain. This has the advantage of:
- No compute or data resource constraints — the bot can run as often as we want on the cloud
- The delegation portfolio management logic is upgradeable and separated
- Simple contracts -> fewer gas costs
The disadvantage of keeping the delegation management logic off-chain is that the pool’s APR depends on the continuous operation of the StakeBaby bot. The funds remain safe (non-custodial) and delegators can force undelegation if they need to. If the bot stops operating, the pool’s APR will decrease and eventually reach 0% after several months. Of course, there is no plan that something like this would ever happen, but even if it did, the delegators can still undelegate and claim the underlying GLMR.
To sum it up!
MamaPool is geared 100% towards performance without sacrificing fund safety. By combining off-chain delegation portfolio management with smart contract custody management, we can get the best of both worlds and deliver a product that can go fast and is built like a tank. I hope you enjoy it and I am looking forward to welcoming you to MamaPool.
For questions, there is always Telegram.
