Staking is an integral part of many blockchain ecosystems, providing holders with a way to earn rewards while demonstrating their commitment to the network. With the relaunch of the $ERA token on the Polygon network, we are excited to introduce our new 1-year staking program. This comprehensive guide will explain everything you need to know about staking your $ERA tokens.
What is Staking?
Staking in our context involves locking up your $ERA tokens for a specified period to earn rewards. Unlike traditional layer 1 blockchains where staking secures the network, our staking program is designed to incentivize holders to show their commitment by holding $ERA tokens for a certain duration. This commitment is rewarded with additional tokens and makes you eligible for ecosystem partner perks such as token airdrops and platform-specific benefits.
Step-by-Step Guide to Staking $ERA
Step 1: Connect Your Wallet
Connect your Polygon wallet (such as MetaMask) on token.erable.com.
Ensure your wallet contains the $ERA tokens you wish to stake.
If you don’t own $ERA token, you can get some on Uniswap. Here is a tutorial.
Step 2: Navigate to the Staking Section
On the dashboard, navigate to the staking section. Here, you will find the option to stake your $ERA tokens.
Step 3: Select the Amount to Stake
Enter the amount of $ERA tokens you wish to stake. Click on “Start Program”.
Step 4: Approve and Confirm
Approve the staking transaction in your wallet. Confirm the details and finalize the staking process. Once confirmed, your tokens will be sent to the staking smart contract.
Step 5: Monitor Your Rewards
You can monitor your staking rewards on the platform. Rewards are calculated daily and updated on the user interface, showing potential rewards at maturity.
Guide to Early Withdrawal and Penalties
If you need to withdraw your staked tokens before the 1-year period:
Step 1: Initiate Unstaking
Start the unstaking process on the dashboard staking tab.
Step 2: Cooldown Period
There is a mandatory 7-day cooldown period. During this time, you cannot claim your tokens.
Your rewards will be subject to a penalty (slashing tax) based on the time you’ve staked. The earlier you unstake, the higher the penalty.
Step 3: Claim Tokens
After the cooldown period, you can claim your initial staked tokens plus any adjusted rewards after the penalty.
Staking Program Details
Our staking program is governed by a smart contract with the following key features:
Duration and Rewards
- Staking Period: The initial staking period is set to 1 year.
- Rewards Calculation: Rewards are calculated using a quadratic function of time, with yield increasing significantly as the staking period approaches maturity. The yield constant c is set at 0.0008 (0.08%).
- Early Withdrawal Penalty: Early unstakers will incur a slashing tax on their rewards, which decreases linearly over time.
Key Components
- Staking Smart Contract: Manages the staking process, including rewards and penalties.
- User Interface: Allows users to interact with the smart contract, stake their tokens, and monitor their rewards.
Rewards Calculation
Rewards are calculated using the function Y(t), which represents the yield at time t:
Where:
- c = 0.0008 (yield constant)
- t is the duration of staking in days
This quadratic function means that rewards grow more rapidly as you approach the end of the staking period.
Early Withdrawal and Penalties
If you decide to unstake your tokens before the 1-year period, a slashing tax will be applied to your rewards. The penalty decreases linearly with time and is calculated as follows:
Slashing Tax Formula:
Additionally, there is a 7-day cooldown period for early unstaking, after which you can claim your tokens.
Unstaking Formula
When you decide to unstake, the total amount to withdraw, R(t), is calculated using the formula:
Where:
- M is the initial amount staked
- Y(t) is the yield at time t
- T(t) is the slashing tax at time t
Conclusion
Staking your $ERA tokens on the Polygon network is a great way to earn passive rewards while showing commitment to the ecosystem. By following this guide, you can start staking with confidence and begin your journey with erable°.
Need Help?
If you have any questions, join our Discord community or email us at token@erable.com. We aim to respond within 48 hours on weekdays and 72 hours on weekends.
