Today we are announcing STEP staking going live in the form of xSTEP!
- xSTEP mirrors the implementation of xSUSHI but is the first such contract on Solana
- xSTEP stakers are entitled to a pro-rata share of rewards in the reward contract
- xSTEP is a SPL token and functions like any other
We are delighted to be launching this today as it completes the first Step in closing the loop in our tokenomics from value accruing products to STEP stakers. Step has many existing and planned future value accruing functions of which a fee is charged. 100% of this fee is then sent to the treasury wallet, from this wallet periodically treasury will exchange whatever currencies, LPs or otherwise that accrue to the treasury wallet into STEP and then send it to the xSTEP contract. Steppers can deposit their STEP in exchange for xSTEP. Once STEP enters the xSTEP contract stakers receive a pro-rata proportion of this STEP which they can withdraw by unstaking their xSTEP and receiving STEP.
The first xSTEP contract funding (and thus when APY will be calculated) will be 24hrs after launch to ensure enough stakers are in there to ensure rewards are distributed fairly and not just to whoever apes first.
APYs are based on revenue and the coins sent to xSTEP are from existing circulation not new token issuance and also protocol revenue is tied to xSTEP APYs. These alignments ensure STEP stakers see a benefit in the good products and services that are deployed on Step Finance.
This is just the beginning, we have future features planned that make direct usage of xSTEP. We are also interested in integrating xSTEP into other protocols as it is an SPL token like anything else and would be ideal for lending protocols or other interesting use cases. We have an API also available for apps like Coingecko and other aggregators of token data.
gm, gl and hf