sWAGMI - staking WAGMI

Process of staking WAGMI into sWAGMI

Staking WAGMI Tokens

Users have the ability to stake their WAGMI tokens to receive sWAGMI. The sWAGMI token represents a staked version of WAGMI.

sWAGMI token contract address on Kava EVM is:

0x3690d1a9fb569c21372f8091527ab44f1dc9630f

• Network Compatibility: WAGMI can only be staked on the Kava EVM Network.

• Benefits of Staking WAGMI:

  • Holders of sWAGMI are eligible for a share of the fee distributions from the Wagmi protocol.

  • Protocol takes 20% performance fee which is then distributed to sWAGMI holders.

• Unstaking: When you unstake sWAGMI, you will receive all your initially deposited WAGMI in addition to any accumulated fees.

• Note: There is a 24-hour time lock on deposits to mitigate the risks associated with front running.

How does staking work?

The staking mechanism for WAGMI token is both straightforward and user-friendly.

1. Depositing into the Pool:

• Users deposit WAGMI tokens into the sWAGMI-Pool.

2. Receiving Tokens:

• As an acknowledgment of their deposit, users receive sWAGMI tokens in their wallets.

• These sWAGMI tokens represent the share of the sWAGMI-Pool owned by the depositor.

3. Fee Collection and Usage:

• Fees are garnered from the protocol. These are used to market purchase WAGMI tokens. Later on, these tokens are deposited back into the sWAGMI-Pool.

4. Unstaking Process:

• When users choose to unstake, they secure their share from the sWAGMI-Pool. This share consists of the originally staked WAGMI tokens as well as any additional fee shares.

5. Important Notes on Token Quantity:

• The amount of sWAGMI tokens users get from staking might differ from the WAGMI token quantity they deposited. As the pool grows from fees, 1 sWAGMI token's value will surpass that of 1 WAGMI token.

6. Return Rates:

• Returns from sWAGMI are variable. They rely on the core performance of the protocol's offerings. Thus, any displayed APR is an approximation based on historical performance.