STACK Staking & Improved Tokenomics
Stake for a Share in the DAO’s Revenue
Per the proposal, all interest on the DAO’s treasury will be used to buy back STACK tokens on Sushiswap and deposit them into the STACK vault on a monthly basis. This currently includes interest on stackUSDC, stackETH, and stackWBTC held by the treasury. With the treasury growing from AYF fees, this is expected to rise over time. The DAO’s treasury can be monitored here.
Rewarding Early DAO Participants
In addition to the buybacks, 50,000 STACK have been granted to be distributed to stakers over the course of a year. This will reward early token holders while incentivizing long-term participation.
The STACK Vault
The STACK vault leverages the Active Yield Fund framework, providing depositors with a stackSTACK token balance that grows over time. Interest from the DAO’s treasury will be directly deposited into the vault at least once a month, along with 5,208 STACK tokens.
Since we will be using our AYF fund structure, additional STACK strategies can be implemented in parallel to the buyback. As an example, in the future, STACK could be on a lending market, and we could use it as collateral to loan USDC and invest this for more STACK rewards. This is already possible from our current AYF fund structure.
Built on Polygon
To allow anyone to participate in staking, we decided to build the vault on Polygon. That way, anyone can acquire and stake STACK on Polygon without losing money on fees while users on mainnet will still save (cost of staking and unstaking is greater than bridging).
To bridge your STACK to Polygon, simply go to the Matic Bridge and select STACK. You should see your balance and can bridge to the Polygon POS chain.
28-Day Maturity Lockup
As bonus STACK and interest from the treasury will be deposited on a monthly basis, a 28-day linearly decreasing lockup will be implemented to prevent arbitrage. For example, if you deposit 40 STACK, after one week 10 STACK is unlocked; after four weeks, all STACK is unlocked.
Withdrawal fee: 0.5% – A withdrawal fee will be charged when users withdraw from the STACK vault, which will be distributed to other stakers. This rewards long-term behavior.
Performance fee: 20% – A performance fee will be distributed to the Stacker Ventures treasury. That way, if any additional strategies are added in the future, the DAO continues to earn back STACK which it can then use to incentivize growth.