Staking and Revenue Sharing
sSONNE and uSONNE represents the staked version of SONNE. The main goal for staking is to distribute protocol revenue and VELO rewards with stakers.
Stakers will get 80% of the protocol revenue and 80% of VELO rewards for the first 3 months. After team tokens start to get unlocked, stakers will start to get 100% of the protocol revenue.
Protocol revenue is generated from taking a fee based on reserve factors for different pools. The more riskier the pool is, the more fees will be generated this way.
There will be 2 different pools for staking. One of them will be sSONNE where the rewards will be used for buying SONNE from the market and distributing it to sSONNE stakers.
The other will be uSONNE where the rewards will be used for buying USDC from market and distributing it to uSONNE stakers.
Reward tokens are shared with stakers on a weekly basis because of Velodrome Finance epochs. First rewards will be distributed 1 week later than the protocol deployment.
When you wish to unstake, there will be 1 week delay. For example, if you staked and want to unstake in 21 October 2022, you will be able to withdraw your tokens in 28 October 2022. This is a precaution for just in time stakers.
sSONNE stakers will have 2 streams of revenue
- Because we will be distributing VELO rewards, there will be 1 week lock period for sSONNE to prevent just-in-time stakers (generally bots). Other than that, there will be no lockup period for staked SONNE.
- Revenues will be distributed based on your share of staked SONNE supply. (If you have 100k sSONNE and there is total of 1M sSONNE, you'll be entitled to %10 of the rewards.
SONNE stakers receive 100% of the protocol revenue after 3 months.
SONNE stakers also receive 100% of the VELO earned through farming.