Community - Dual-Sided Staking
10% of the total supply of Probably Nothing tokens are allocated for staking rewards.
There are two primary types of staking that will be available to Probably Nothing holders:
- Dual-Sided Staking (LP Staking) - To be delivered in the future
PRBLY Rewards tokens are kept in a Gnosis multi-sig wallet with 3 of 5 signers required to execute a transaction. All 5 of the signers are Probably Nothing team members. These are and will be deployed to staking smart contracts for distribution as rewards. The Gnosis Wallet can be found here: https://app.safe.global/eth:0x1003405d2b8A02E4102AC40C1C7Cc7B4B3de1fc8/home
Dual-Sided Staking or LP staking is where users pair PRBLY and ETH in the liquidity pool and stake their LP position in a contract created by the PRBLY team.
Liquidity provides depth for trading, allowing more people to participate within the PRBLY ecosystem or use the product. Staking for liquidity lets the community participate in market-making around the token and ensures that we’ve created a product with utility. Liquidity providers can participate in staking to earn PRBLY rewards. This further incentivizes staking beyond the standard trading fees earned by liquidity providers.
When users stake their PRBLY-ETH liquidity positions, they will receive an sPRBLY-ETH token (symbol subject to change) in their wallet that serves as a marker of their staked PRBLY position. By having this marker in your wallet you will be able to participate within the full PRBLY ecosystem without degrading your user experience. As an example, there may be times when your holder tier will need to be verified with this token to access certain benefits and rewards.
Due to the potential for Impermanent Loss (IL) when providing liquidity, it is possible that someone who stakes their LP token could end up with fewer PRBLY (and more ETH) when they remove their liquidity position, or vice versa. Users still receive PRBLY rewards for staking. See below for additional information regarding IL.
Learn More About IL: Our mission is to always bring education and awareness to everything we do. To that end, if you are unfamiliar with how IL works, please watch this nifty video about impermanent loss https://m.youtube.com/watch?v=8XJ1MSTEuU0
Did You Know? Optimal depths of liquidity encourage arbitrage opportunities across centralized and decentralized exchanges. Should PRBLY someday be listed on multiple exchanges, these arbitrage transactions will help to increase the daily trading volume of PRBLY. Daily trading volume is a key metric in the popularity of a token and drives further arbitrage opportunities, creating a feedback loop that can increase trading volume and token exposure.