Staking v2 goes live today, bringing several additional features and structural changes to the staking mechanism. To accomplish the changes approved by governance (KIP-42/45/58/62/75/77, and 86), Kwenta developers needed to build new smart contracts.
By implementing a checkpoint system to track staked balances, Staking v2 enables early vest fee distribution, on-chain voting, on-chain rewards, and much more! Need a complete rundown? Let’s dive in!
If you are currently staking $KWENTA in the legacy staking contract, you will need to claim rewards, as well as register & migrate v1 escrow entries in order to continue receiving rewards.
Head to the Migration Guide for step-by-step instructions, then visit the staking page to connect a wallet that needs to migrate to use the migration helper.
Only $KWENTA staked in the new v2 contracts will count towards any DAO voting power or receive inflationary/trade rewards!
With the initial Staking v2 release, $KWENTA stakers can utilize several new features immediately.
Users may now transfer v2 escrow entries without vesting, allowing them to consolidate escrow balances, migrate staking to a new wallet, or secure entries in a compromised wallet while preserving their full balances.
All stakers should be aware of an unstaking cooldown period introduced in Staking v2, which discourages disruptive, short-term actions such as buying votes, capturing fee revenue, and rewarding long-term participation. At launch, this cooldown will be set for two weeks from the last interaction with the
StakingRewards contract and can be changed via governance.
Any interaction with the
StakingRewardscontract, including compounding, staking new liquid or escrowed Kwenta will reset the countdown to 14 days. Vesting escrow Kwenta is not subject to this cooldown.
Staking v2 ensures that users who staked via smart contracts are not left behind. The new integrator contract support introduces additional functions to allow integrators and other contract-based stakers to claim v2 rewards.
Prior to the weekly inflation minting event, the adminDAO will send 373.075 $KWENTA to the rewards contract weekly for the next 20 weeks in accordance with KIP-75. These tokens and inflation will then be streamed each week as "rewards".
Any new early vest fees will now be redistributed directly to our new contract, then streamed linearly as rewards each subsequent week to stakers.
Direct Distribution: Early Vest Rewards will no longer pass through intermediaries. They will now be sent directly to our staking contract.
Simplified User Interface: With this new method, users do not need to engage with a separate claim UI.
Variable APY: The Annual Percentage Yield (APY) for staking will not remain constant. It will alter every week, contingent on the amount vested in the preceding week. It's worth noting that each week is viewed as an epoch, with a new cycle commencing every Thursday when fresh rewards are minted.
This change hopes to enhance the user experience, making it more streamlined & passive.
With V2 staking and implementing early vest fee distribution, an intermediary contract
stakingRewardsNotifier is introduced. This contract retains all early vest fees per epoch. Once
stakingRewardsNotifier obtains weekly inflation, it distributes the minted inflation & collected early vest fees to the
stakingRewards contract. Consequently, stakers earn additional tokens in the subsequent epoch linearly, termed as “rewards.”
As proposed in KIP-42, Staking v2 introduces the
stakeEscrowOnBehalf functions. These powerful functions, paired with allowing
delegation, empower individual stakers to utilize secure custom built, or third party solutions to automate compounding of rewards.
Staking v2 is an essential upgrade that enables highly requested features such as escrow migration and the distribution of early vest fees to stakers. Migration to the new Staking v2 contracts also brings several backend improvements, including better on-chain data and upgradability, ensuring future feature upgrades are able to utilize more flexible and robust infrastructure.
Still have questions? Come visit us in Discord for clarification on this process or how Staking v2 may impact you!
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