Posted by Ambire Wallet on February 15th, 2022
The wait is over: starting with February 15th 2022, $WALLET — the community and governance token of the Ambire Wallet — can be staked in return for rewards.
It’s Valentine’s season, so what better way of showing our love towards the Ambire Wallet community could there be, other than giving our supporters a chance to start earning more inside the ecosystem?
As promised when launching the $WALLET token about two weeks ago, we’ve aligned everything so that the Ambire Wallet Staking Pool is now live and ready to accept deposits, return staking tokens and start earning staking rewards for you.
What is staking and why is it important?
The short explanation for staking is that it represents a simple way to earn rewards by locking a certain amount of tokens or coins in a pool. Staking is an excellent way to encourage token holders to participate in and get involved with the Ambire ecosystem — and helps them earn rewards in the process.
How to stake $WALLET
In order to stake, be sure you have $WALLET tokens in your account. If you don’t already own $WALLET tokens, you can easily procure them through one of three methods:
- By swapping some of your existing crypto for $WALLET through the Swap feature of Ambire Wallet;
- By acquiring $WALLET tokens from the Huobi Global trading platform, where it is listed as a pair with USDT; or
- By getting $WALLET tokens from SushiSwap (similar to the first option, which is a Sushiswap plug-in/integration in Ambire Wallet through a friendly UI).
Last but not least, there are Ambire Wallet accounts that have already received $WALLET rewards, either through the early user rewards mechanism or as an early investor. These can be claimed and then easily staked — however be mindful that if you decide to claim tokens and not stake them, you will lose 30% of them. This is a fail-safe mechanism that Ambire introduced in order to ensure the stability of the token’s value. Claimable rewards are updated on a weekly basis.
When you have your $WALLET and know how much of it you want to deposit to the staking pool (you can also deposit the entire sum), all you need to do is go to your Ambire Wallet window, click on the “Earn” tab on the left and you’ll see an option to stake WALLET.
FAQs and a tutorial explaining step-by-step how exactly to stake your tokens can be found here — be sure to go through them before your first deposit.
How do I receive staking rewards?
There is only one staking pool available for $WALLET holders, and that is where the staking rewards are received and accumulated.
In return for a deposit of $WALLET tokens in the pool, the staker’s account gets funded with xWALLET staking tokens, proportionally to the value of $WALLET tokens staked; the xWALLET tokens represent each staker’s share in the pool. This will be their staking position, visible in the Ambire Wallet account dashboard.
When $WALLET tokens are deposited or rewards received in the staking pool, they get automatically distributed between active pool participants (existing stakers), proportionally to their respective stakes in the pool at that moment, adding them to the staker’s already existing xWALLET position.
Staking rewards will be auto-compounded to each staking bond. The rewards can also be viewed in the Earn tab of the Ambire Wallet, which will show the value of the staking position in $WALLET, meaning a total made of the initial staked tokens plus the tokens that are received as rewards.
Where do staking rewards come from?
Funding for staking rewards can have multiple sources, linked to the revenue sources of Ambire: minting $WALLET tokens, fee revenues from the Ambire Wallet, the WalletDAO future decisions to allocate more staking rewards etc.
You can learn more about staking and xWALLET in the Ambire Wallet Whitepaper.
What is the cool-off period for staking $WALLET
Staking $WALLET requires a certain period of time in which your stakes are locked — meaning they have to stay in the pool for that period of time. This cool-off time is set to 20 days.
This means that once you request to unbond your tokens, you stop earning rewards, and your tokens remain locked for 20 days. After that period is over, you can claim your tokens.
If you really (really-really) need to unbond earlier than the mandatory 20 days, there will also be a ‘rage quit’ option available for these situations. With it, you’ll be able to unstake immediately, but at the cost of losing 30% of your stake, which will get distributed to other stakers (i.e. you can skip the 20-day cooling off period but you only get 70% of your tokens).
Make sure you understand the tokenomics and distribution model of the $WALLET token, so that you can make the best-informed decisions for your crypto asset management.
Well, that about sums it up from us regarding staking. We’ll surely be back with other news shortly, so in the meantime go forth, spread the ❤️ and stake $WALLET!