sWAGMI - staking WAGMI
Process of staking WAGMI into sWAGMI
Last updated
Process of staking WAGMI into sWAGMI
Last updated
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.
