What is a Stake2Earn Pool?
Last updated
Last updated
Stake2Earn Pools are Dynamic AMM that are launched with the stake-to-earn mechanism.
Stake2Earn is a 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.
As a highly-configurable mechanism that can be used by launchpads, creators, and holders, we believe Stake2Earn has the potential to greatly incentivize both staking and trading, and in turn bring more sustainable revenue and dynamics to memecoins.
Memecoin Pool: A Dynamic AMM Pool created with a fee scheduler and with initial liquidity perma-locked.
Stake2Earn Vault: Stake-to-earn farming mechanism and vault where top stakers can earn a share of fees from the locked liquidity.
Stake2Earn Pool: A Memecoin Pool with a Stake2Earn Vault.
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 Vault for the pool, and distributed to top stakers.
Here’s how it works:
If you are going to hold the memecoin anyway, you can stake it to earn fee rewards. Only top memecoin stakers (e.g. Top 100 stakers) are eligible to earn fee rewards from the associated liquidity pools. In addition, the higher your 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 that the actual memecoin has to be staked and not an LP token, so there’s no risk of IL (impermanent loss).
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.
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.
Top stakers earn fee rewards in a combination of SOL and memecoins. SOL can be manually claimed right away, but 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.
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 restake and count towards earning fee rewards if they are a top staker.
Stake2Earn is a hassle-free solution that creators can use immediately to implement an automated staking mechanism for their memecoins.
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.