📝Staking at GDAG
This section is relevant to holders of the GDAG token interested to stake and earn GDAG - WETH LP tokens and subsequently stake the LP Tokens to earn KAS Mining rewards in the form of ETH.
Colocation customers and GDAG holders who are not interested in Staking may skip this section entirely.
WARNING: Engaging with cryptocurrencies is extremely risky and dependent on regulations across different geographies. GhostDAG.org are not financial advisors and engaging with any of our products and services does not guarantee any sort of financial rewards. Users of any products and services on our platform are strongly advised to do their own research inclusive of geo-specific legislations and understand the risks accordingly from licensed financial advisors in the space. As of December 2023, pending broad-based regulatory clarity, all cryptocurrencies across the spectrum are only lines of code offering no intrinsic value or otherwise in comparison to real regulated money-markets. Anyone found proceeding from here is deemed to be engaging with the Protocol at his or her own free will and risk appetite with no liability or impact due to the Team at GhostDAG.org We are unequivocally not responsible for results of any users decision making.
Staking Tiers Pool 1 (Stake GDAG, earn GDAG - WETH LP)
IMPORTANT: Staking and Unstaking tax of 2% will apply, stakers are advised to ensure the tier qualification is met AFTER the tax. Note: Staking Tax is 0% until 14:00 UTC on Monday, 18th Dec.
For example: Tier 1 threshold is 28700 GDAG and above, so a user will need to stake 29450+ to qualify for the Tier.
Tier 1
gdagLPBalance x 5 x 5 / 100000000
Tier 2
gdagLPBalance x 6 x 8 / 100000000
Tier 3
gdagLPBalance x 7 x 14 / 100000000
Tier 4
gdagLPBalance x 8 x 19 / 100000000
Tier 5
gdagLPBalance x 9 x 24 / 100000000
Tier 6
gdagLPBalance x 10 x 30 / 100000000
Sample Staking journey and Reward Rate calculation:
User stakes 30,000,000 GDAG Tokens
He or she is in Tier 4 after the 2% Staking Tax
Now, Check GDAG LP Balance (The amount of GDAG LP Tokens held in the staking CA), If GDAG LP Balance is 100,000, the daily earnings would be:
100,000 x 8 x 19 / 100000000 = 0.152 GDAG LP Tokens
NOTE: This is an example and will vary frequently, given the available GDAG LP Balance to distribute keeps changing as users stake and unstake regularly. Multiple community made calculators are available for users to track the actual daily rate however it is advisable to perform the simple task of calculation as given above to avoid any confusion.
Staking Contract:
GDAG - WETH LP Token Contract:
GDAG Token Contract:
Rewards Code:
function checkEarnings(address _stakeholder) public view returns (uint) {
uint activeDays = (block.timestamp.sub(lastClock[_stakeholder])).div(86400);
uint gdagLPBalance = IERC20(GDAG_LP).balanceOf(address(this));
uint rewards = 0;
uint stakeAmount = stakes[_stakeholder].div(10**18);
Frequently Asked Questions
In order to enable and foster decentralization through community ownership, it is important to be majority owners of the liquidity that drives the Project. Therefore holders of GDAG who want to benefit from Mining rewards will require to acquire GDAG - WETH LP Tokens via a staking Pool.
In brief, holders of GDAG stake the token, and receive GDAG - WETH LP Tokens as a reward. The LP Tokens then are further staked in the mining rewards pool to earn ETH (generated from the KAS mined and then liquidated for ETH)
Users will note that as of 19th Dec'23 to 20th Jan'24, the mined KAS rewards will be airdropped to Pool 1 stakers based on amount of GDAG Staked. Post this, a revaluation will take place on the need to proceed with a Pool 2 or not.
How to Stake? Live Demo: https://www.youtube.com/watch?v=zEzCuPCZjI0
Staking Link: GhostDAG.org/pool1
Why is there a 2% Stake and Unstake Tax?
LPs are the backbone of any DeFi based project, and as a de-facto community owned project, it is imperative to incentivize holders to have a long term vision. Therefore a 2% stake and unstake tax has been employed to disincentivize short term swing traders from participating in the LP decentralization process.
Additionally, users will note that majority of the Utility based projects charge as much as a 5/5 Tax on trading. However for GDAG, the 4% Buy tax and 2% Stake-Unstake Tax still add up to 8% only.
This tax is utilized to further reward stakers by circling back into relevant Pools.
What is the APY / APR? Any prospective earnings made from staking GDAG to receive GDAG-WETH LP Tokens is an extra bonus over and above the mining rewards and as such not the primary driver of the Project, given this is a mining project with the primary aim of redirecting KAS Mining rewards to holders of the Token.
Therefore the LP Token is to be considered as a gate-pass and nothing more. Any resulting earnings materialized by breaking the LP Token, or earning trading fees (0.3% of all transactions proportionate to the % of holders LP Tokens in the total pool) is an extra bonus provided to incentivize long term ownership of the Project decentralized to GDAG holders.
Why stake GDAG tokens instead of just airdropping rewards?
Staking GDAG Tokens cements the long term view of holders interested in the Projects overall success. It is not mandatory to stake, users can hold and trade the GDAG tokens off their own free will without engaging with the staking pools, but will also forefeit the mining rewards as a result.
What is this GDAG - WETH LP Token?
Please find a good primer here on what is an LP Token: https://www.upside.gg/the-ledger/guide-to-liquidity-provider-tokens#:~:text=Liquidity%20Provider%20Tokens%2C%20or%20LP,for%20the%20trading%20of%20cryptocurrencies.
and
https://docs.uniswap.org/contracts/v2/concepts/protocol-overview/how-uniswap-works
Do I need to buy this LP Token additionally?
An LP Token cannot be typically bought (unless it is paired with another tradeable cryptocurrency such as USDT or WETH). It can be created by adding Liquidity to the trading pair. i.e. User supplies equal amounts of underlying Token and WETH and in return receives LP Tokens that also earn 0.3% of fees on daily traded volume relevant to their share of LP Tokens provided into the pool
How do I get the GDAG - WETH LP Tokens then?
A user may feel free to add liquidity to the GDAG pool and create fresh LP Tokens for themselves. However at the outset, 60% of GDAG Liquidity (amounting to roughly $900,000 at current market price, this varies as the token trades) will be given out to GDAG holders who are participating in the staking Pool. Holders can stake their GDAG tokens and receive the LP Tokens as a reward basis their Tier.
I have GDAG - WETH LP Tokens, what next?
You will stake them in the 2nd pool, the mining rewards pool, to receive your share of ETH generated from the KAS mining activity, again relevant to your respective Tier.
Why are there tiers in staking, why not give out fixed percentage?
Tiers help incentivize protocol growth. Additionally having a fixed amount has been found to make most of the existing staking protocols excessively whale friendly. Therefore a tiered approach has been used to balance out the game theory and allow for everyone to participate based on their respective strategy to seek yield.
What are the ownership functions to be aware of?
Same as employed across the Blocktools portfolio, the GhostDAG staking pools are owned contracts where multiple actions can be performed, as necessitated by the dynamic nature of the industry with relevance to security and contingency measures. Therefore the GhostDAG deployer MineKaspa.eth can change the minimum Stake, Fees, Pool Active Status and rescue LP + Taxed GDAG for circling back into the farms to reward stakers.
General Queries
Gas too high when trying to claim: You have not reached the 24 hours limit
Gas too high when trying to stake: You have not approved the Staking CA to spend the Tokens on your behalf
Dashboard not displaying Staking Info: Clear Cache and make sure you are connected using on an account that holds the Tokens balance or has staked Tokens
No more rewards being earned: You are in a Tier that has exhausted it’s pool allowance — Upgrade to the next Tier or unstake and retain your Tokens
Added to stake and LP earned shows 0 - Check back in 24 hours, code recalibrates the earnings, will accrue previously owned plus newly eligible LP earnings. Stakers will not lose the earlier earned LP
What is stake/unstake Tax used for: Circles back to respective Pools
Can I unstake anytime: Yes, there is no lock-in tenure. Note you will pay 2% tax everytime you stake or unstake
When should I claim rewards: Claim it at your convenience, different strategies apply, common sense is to await larger accumulation and low gas cost to claim periodically. Ensure to claim rewards regularly.
Can I add to Stake: Yes you can add to existing stakes without impacting your prior stake. When in doubt, claim rewards prior to updating, await UI update over 24 hours, you will not lose your rewards interim.
I unstaked some amount but am still staked for some amount: Check the tier you fall into after unstaking, the revised Tier calculation will apply based on the leftover amount that is in the stake
What is an LP Token, why is it needed: https://docs.uniswap.org/contracts/v2/concepts/protocol-overview/how-uniswap-works
My earned rewards is fluctuating: This is normal, as people constantly join and leave the pool, the code will need to re-calibrate the available rewards allocated for that Tier and manage distributions for the new number of stakers in that Tier accordingly (whether lesser or more)
Getting a high gas error when trying to unstake: Use a lower decimal, for example instead of 10.12345 use 10.123
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