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Overview

Stake2Earn is a mechanism where top memecoin stakers compete to earn fee rewards from permanently-locked liquidity in the memecoin pool, transforming memecoins from a race to dump to a race to stake.

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How does Stake2Earn work?

Whether as a memecoin holder right from launch or a new holder just entering the game, Stake2Earn offers a unique opportunity to earn fee rewards through staking.

Fee rewards are collected in the Stake2Earn fee vault for the pool, and distributed to top stakers.

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Top Stakers Earn Fee Rewards

If you are going to hold the memecoin anyway, you can stake it to earn fee rewards. Only top memecoin stakers (configurable from 5 to 1000 stakers) are eligible to earn fee rewards from the associated liquidity pools.

In addition, the higher you stake, the larger your share of the fee rewards generated by the permanently-locked liquidity. This competitive element incentivizes users to secure a ranked position and buy & stake more to increase and maximize their fee rewards.

Note: The actual memecoin has to be staked and not an LP token, so there’s no risk of IL (impermanent loss).

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Dynamic Competition for Fee Rewards

If a staker falls out of the rankings (e.g. out of Top 100), they immediately stop earning fee rewards. This mechanic ensures that participants stay committed to staking in order to retain their fee rewards.

As more participants seek to rank in the leaderboard, competition grows, driving a higher demand for the memecoin.

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Real-Time Earning — Stake More, Earn More!

Stake2Earn operates in real-time. As you stake more, you instantly earn more fee rewards per block that you can manually claim later, providing an engaging experience for stakers who want to see returns on their stake.

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Claim Quote Token Rewards, Compound Memecoin Rewards

For both token fee collection mode pools on DAMM v1 and DAMM v2, top stakers earn fee rewards in a combination of Quote Token and memecoins.

Example:

  • SOL rewards: Can be manually claimed right away
  • Memecoin rewards: The memecoin portion of the claimed fee gets added to your stake, compounding earnings while mitigating sell pressure

This dual reward structure — claiming SOL right away combined with restaking memecoin fee rewards makes it convenient for stakers to get rewarded without adding sell pressure to their holdings.

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Cooldown Period for Unstaking

Staked memecoins must go through a cooldown period (customizable at Stake2Earn creation, minimum 6 hours) where the stakers must wait before they can withdraw their memecoins.

Any memecoins undergoing this cooldown period do not count towards your staked memecoins and potential fee rewards. If users change their mind, they may cancel anytime and their memecoins will immediately count towards earning fee rewards if they are a top staker.

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Benefits for Creators

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Automated Staking Mechanism

Stake2Earn is a hassle-free solution that creators can use immediately to implement an automated staking mechanism for their memecoins.

Key Benefits:

  • No Extra Costs: Rewards come entirely from trading fees on permanently-locked liquidity, not from tokenomics
  • No Development Required: There’s no need to build a new program, design a UI, or handle any technical work
  • Automated Reloading of Rewards: Unlike traditional liquidity pool farms that require manual reloading of token incentives that also impact emissions, Stake2Earn automatically top up rewards from trading fees so creators do not have to do anything

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Launchpad Integration

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Easy Integration and Customization

Easily integrate Stake2Earn’s staking mechanism and customize it according to your launchpad needs to support different token launch models:

Value-additive staking mechanism: Stake2Earn offers a unique, value-additive staking mechanism for memecoins launching on your launchpad, without having to change your existing launch process.

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Highly Configurable Fee Structure

Stake2Earn fees are highly configurable to be aligned with your launchpad goals and needs. A percentage of fees can be allocated towards different actions, for example:

  • Reward stakers and incentivize participation
  • Taken as a launchpad fee
  • Given to creators to attract more memecoin launches
  • Permanently-locked for deflationary purposes
  • Given to your launchpad users to incentivize any action you want

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Configuration Parameters

Stake2Earn’s configurability adapts to all types of memecoins. Creators and launchpads can define key parameters based on their requirements:

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Key Parameters

  • Fee allocation: % of fee rewards from permanently-locked liquidity to allocate to top stakers vs keeping it solely for themselves
  • Eligible stakers: Number of stakers who will receive fee rewards (e.g. Top 100 stakers)
  • Unstake cooldown: Time period before staked memecoins can be withdrawn for users who unstaked (minimum 6 hours)
  • Fee distribution duration: Time period over which fee rewards are distributed (minimum 7 days)
  • Fee unlock start time: When fee rewards will start unlocking for stakers (immediate or at a custom time)