Wrapped HEX Stakes?
In this article, we’ll be discussing the staker-shares-contracts. Two contracts that were built to encapsulate HEX staking for the purpose of reducing gas consumption, improving market features, and exporting access to HEX interest to other chains. Each contract targets different users for different purposes. Although there are no interfaces built yet, these contracts are deployed and live.
Contract Fundamentals — Stake Ownership
The HEX contract assigns ownership of a newly created stake to the address engaging with the HEX contract via the global msg.sender field. This means new contracts must be layered on to add additional functionality.
Note: Existing stakes made directly to the HEX contract cannot later be changed or encapsulated.
Share Minter — 🐳🦈🐬
This contract is intended for larger HEX holders that have the ability to provide liquidity in the form of HEX shares. Staking HEX to the Share Minter contract rewards the supplier with a percent of the created stake shares and corresponding end stake reward (specified as 0–99.9% premium). The reward acts as an incentive to be a good stake custodian — it should at least be more valuable than the cost to end the stake.
Contract Rules
- Emergency end stake is disabled
- Anyone can end a mature stake
- If no one ends a mature stake within 10 days, the supplier’s earnings are paid to the first caller
Share rate only goes up 👀
The stake in the above example would have yielded 990 T-Shares to the Share Market including 1% of the shares removed for the supplier. Opening the same stake today (7 months later) would only yield 892 T-Shares. The statically priced shares on the Share Market only become more appealing as the share rate continues to increase.
To further make this point— above is the HEX T-Share rate over the past 12 months. Highlighted in the image is the date we ‘created’ the imaginary stake. Since May 1 2021, the cost of shares has consistently increased and will continue to do so as new HEX stakes end.
Share Market — 🦑🐢🦀🦐
This contract is intended for HEX holders that benefit drastically from reduced ‘staking’ cost. The cost of ending a HEX stake increases linearly based on number of days staked. The cost of claiming end stake rewards from the Share Market contract is much cheaper and doesn’t increase with stake length.
HEX end stake gas cost: 54,000 + (days staked * 2,310)
Share Market claim gas cost: 40,000
Only the deployed Share Minter contract is allowed to post new listings to the Share Market. When buying shares from the market, you’re buying shares of an existing larger stake. The price of shares is static and determined by the seeded ratio of HEX / Shares for any minted stake.
The Share Minter contract forwards HEX end stake rewards to later be claimed by Share Market participants. Shareholders must claim rewards for themselves (no late penalties). Stake rewards are paid in proportion to shares purchased of total shares listed.
