Introducing: Swingby Pre-Staking.
The Swingby Pre-Staking program — A unique self custody staking solution.
See the technical detail guide here — Swingby Pre-Staking Guide
We’re fresh on the back of our incredible testnet Bitcoin Token Swap Volume Competition in March this year, in which we saw over $9 Billion of tBTC swapped over the Swingby Skybridge, and paid out over $10,000 in prizes.
The Swingby team have been hard at work on optimising the protocol operations based on the abundant feedback we were able to gather from the testing.
In addition, the commercial team have been number crunching and closing deals with partners, liquidity providers, and exchanges to get the project up and running in Q3 this year.
Which brings us to introducing the latest feature that we would like to announce today…
Swingby Pre-Staking
If you’ve read the Swingby Whitepaper, [you should ;)] You already know that the SWINGBY token is required to stake in order to run a node on the network to validate swaps and share in the pool of transaction swap fees paid.
However, as per our roadmap, until the Skybridge protocol is running fully on mainnet, SWINGBY token holders can Pre-Stake their SWINGBY tokens and earn weekly interest.
The Swingby team has designed and built a complete Self-Custody pre-staking platform that permits users to stake tokens without ever moving them out of their wallet or giving up any private keys or other credentials.
Staking Mechanics
All staking/unstaking happens entirely on-chain with your tokens never leaving your control.
Here’s how it works:
To stake your SWINGBY tokens, you simply need to send the tokens to yourself with this week’s staking code in the memo field of the transaction.
That’s it.
Once “Staked” the funds will begin to accumulate interest immediately, and will receive the interest paid out at the weekly disbursement from the Swingby team.
The interest paid out will be automatically pro-rata calculated for the duration in which you staked. For example, if the interest rate is 1% per week — staking for the full 7 days would earn you 1%; staking for 3.5 days would earn you 0.5%, etc.
To “Unstake” your tokens, simply send them again to any address (yourself or others) and the “Staking” condition will be broken and you will receive no more interest for the current week on any of the remaining tokens unless you restake your new balance.
Staking Example:
- Chloe has 10,000 SWINGBY that she wants to stake on the Pre-Staking program to earn the weekly 1% interest.
- Chloe holds her 10,000 in her TrustWallet account
- Chloe gets this weeks staking memo code “xxxxxx” from the Swingby website or social media.
- Chloe sends her 10,000 SWINGBY from her wallet, back to her same wallet address, with the code “xxxxxx” in the memo field. — This is the staking method
That’s it.
The tokens never left Chloe’s wallet and she never shared her private keys with anyone or connected her wallet in any portal.
Chloe’s 10,000 SWINGBY tokens are now staked on the pre-staking program and are already accumulating interest.
At the end of the week, her 10,000 SWINGBY become automatically unstaked and her interest will be paid out.
At the end of the weekly staking period, ALL SWINGBY tokens are AUTOMATICALLY UNSTAKED.
In order to stake your tokens again, you simply need to get the staking code for this week, and stake your tokens in exactly the same way again.
If you wish to unstake your tokens during the week, before they become automatically unstaked, you simply need to send any amount of those tokens in an outgoing transaction to yourself or to another wallet, and the full balance of tokens are automatically unstaked.
Unstaking Example:
- Chloe holds 10,000 SWINGBY in her TrustWallet
- Chloe stakes all 10,000 SWINGBY on Monday.
- Three days later, Chloe sends 5,000 SWINGBY tokens from her wallet, to and exchange.
- Chloe does not re-stake the remaining 5,000 SWINGBY.
- This outgoing transaction automatically ends the previously set stake.
As you can see here, the staking for the entire week to date is ended if ANY tokens move in an outgoing transaction, even if they are sent in a transaction to yourself.
In order to continue earning interest, Chloe needed to restake the remaining SWINGBY tokens after she made the outgoing transaction.
At the end of this week, Chloe would receive a payout for having staked 10,000 SWINGBY tokens for 3 days ONLY.
Let’s take a couple of other examples to clarify the pre-staking validity:
Example 1 - Adding new tokens but not staking them:
The Swingby Pre-Staking program is offering 1% per week in interest for staked SWINGBY tokens
- Peter stakes 100,000 SWINGBY tokens immediately at the start of the staking period for this week
- 3 days later, Peter sends himself 10,000 SWINGBY tokens from his exchange account to his wallet that he uses for staking.
- Peter makes no further transactions OUT from his wallet of SWINGBY tokens
At the end of the week, Peter is paid out:
(100,000 tokens were staked for 1 full week)
1% of 100,000
= 1,000 SWINGBY tokens paid out to Peter
The additional 10,000 SWINGBY were NOT staked by Peter, and as such were not validated by the Swingby pre-staking program.
However! Let’s see what would have happened if Peter decided to stake the additional 10,000 SWINGBY tokens…
Example 2 - Adding new tokens but not staking the full balance:
- Peter stakes 100,000 SWINGBY tokens immediately at the start of the staking period for this week
- 3 days later, Peter sends himself 10,000 SWINGBY tokens from his exchange account, to his wallet that he uses for staking.
- Peter stakes the 10,000 SWINGBY tokens ONLY by sending them to his same wallet with the weekly staking code
- Peter makes no further transactions OUT from his wallet of SWINGBY tokens
At the end of the week, Peter is paid out:
100,000 tokens were staked at the start of the week.
HOWEVER — the later dated self send transaction for 10,000 SWINGBY tokens automatically ended the previously set stake of 100,000 SWINGBY tokens, and started a new staking for this week of 10,000 SWINGBY tokens.
Now, Peter has 100,000 SWINGBY tokens staked for the first 3 days, and 10,000 SWINGBY staked for the remaining 4 days of this week.
First stake of 100,000 SWINGBY tokens for 3 days:
1% * (3/7) = 0.43%
0.43% of 100,000 = 430 SWINGBY tokens
Second stake of 10,000 SWINGBY tokens for 4 days:
1% * (4/7) = 0.57%
0.57% of 10,000 = 57 SWINGBY tokens
The SUM payout is then 487 SWINGBY.
Example 3 - Adding new tokens and restaking the full balance:
- Peter stakes 100,000 SWINGBY tokens immediately at the start of the staking period for this week.
- 3 days later, Peter sends himself 10,000 SWINGBY tokens from his exchange account, into his wallet that he uses for staking.
- Peter restakes the full balance of 110,000 SWINGBY tokens by sending them to his self same wallet with the weekly staking code.
- Peter makes no further transactions OUT from his wallet of SWINGBY tokens
Now, Peter has 100,000 SWINGBY tokens staked for the first 3 days, and 110,000 SWINGBY tokens staked for the remaining 4 days of this week.
First stake of 100,000 SWINGBY tokens for 3 days:
= 1% * (3/7) = 0.43%
0.43% of 100,000 = 430 SWINGBY tokens
Second stake of 110,000 SWINGBY tokens for 4 days:
1% * (4/7) = 0.57%
0.57% of 110,000 = 627 SWINGBY tokens
The SUM payout is then 1,057 SWINGBY tokens.
Let’s join the Staking Portal!
Want to trade Swingby? Check us out on CoinGecko or CoinMarketCap.
Get Rewards! Stake your Swingby Token to earn up to 52% annualized (67% compounded) in rewards, airdropped to your wallet weekly. Use the Staking Portal or BitMax.
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