A valuable new DeFi tool for Ubeswap users to stake UBE and participate in Governance
Impetus Behind Single Staking (How We Got Here)
Governance on Ubeswap has evolved rapidly since the protocol launched earlier this year. The community has implemented a number of initiatives from i) programmatic pool rewards, to ii) an UBE community buyback funded by transaction fees, iii) new bridges, and iv) now single-staking!
One challenge with community participation in the existing governance process arose from the reality that UBE was not only the token used for voting, but it was also used for liquidity mining on Ubeswap. Users would have to decide whether to forgo liquidity mining rewards for a period of time in order to cast their vote. Single staking is an effort to resolve this tension, to ensure that governance on Ubeswap remains fully participatory by allowing the community to simultaneously earn rewards and vote on governance initiatives.
UIP-6 Governance Proposal & Implementation
Single-staking pool participants will initially receive 5% of the weekly UBE rewards distribution, according to UIP-6. For reasons highlighted in this post, single-staking rewards will come from the partnerships & ecosystem tranche of UBE, rather than extracting from current mining rewards.
The launch of single-staking also includes governance features, so community members can vote on Ubeswap governance proposals while remaining staked and earning rewards. The next section illustrates how this works.
Getting Started Guide
UBE single-staking and governance features are available within the new ‘Stake’ tab.
Step 1: Connect Wallet and Approve UBE
First, connect your wallet to Ubeswap. If you haven’t already approved using UBE from within the wallet, you will be prompted to do so.
Step 2: Stake and Vote
The next step is to enter the amount of UBE you wish to stake, and click the ‘Stake’ button. Staking UBE is also how you vote on the latest Ubeswap Improvement Proposal (i.e. governance) on Romulus. The default vote for your governance selection is ‘abstain’, but you can change your vote on this page. In addition, you can claim your accumulated UBE rewards.
