Staking Protocol

Stake SPA to earn rewards from fees and yield

SPA holders can stake SPA tokens on either Arbitrum or Ethereum and receive veSPA tokens which are non transferable. veSPA balance is proportional to the lockup period, meaning if user locks up for higher duration they receive proportionally more veSPA tokens. veSPA balance determines the share of staking reward and voting power

  1. Staking rewards: rewards will be distributed proportionally to the user's veSPA balance. Users who lock SPA for longer periods are eligible for proportionally more rewards (accrued on a weekly base) than users who locked the same amount of SPA for shorter periods. Rewards are accumulated through:

    • Yield Share Rewards - 25% of the yield generated by USDs protocol.

    • Fee Rewards - 100% of the Fee income from USDs mints and redemptions.

    The yield and fee income is originally generated in USDs. It is then swapped for SPA tokens before distribution. This makes the reward claiming process simple for stakers and maintains a constant buying pressure on the SPA token.

  2. Voting power: once governance protocol is launched, voting power will depend on users' veSPA balance. Users who are committed to longer lockups will own more votes, whatever they are voting for.

veSPA balance at the moment of staking will not stay the same all the time - it will decay/reduce linearly. User's rewards per week and voting power will also decrease over time, together with the veSPA balance. Stakers can increase their veSPA balance and thereby their staking rewards and voting power by either extending the locking period or locking more SPA or re-staking SPA rewards.

At the end of the lockup period, veSPA balance will reduce depending on the pre-selected withdrawal option:

  1. For Auto-cooldown option - to zero.

  2. For the "Staying Staked" option (manual cooldown) - to [0.01917*staked SPA tokens]. Please note that for new stakers the "Staying Staked option" is not available.

To Stake SPA through our dapp checkout Stake SPA

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