Is there anywhere that details earnings for simply staking BALN on it’s own. All I can find is generic wording stating that network fees are earned but nothing more than that?
Hi @Deucerider,
Network fees and voting weight are the current rewards for staking BALN. That will change with bBALN. Let me explain.
Currently, any BALN staked or in a liquidity pool qualify to receive voting weight and network fees. Because network fees are dynamic and change daily, their is no way to give a specific amount.
The first change towards bBALN will be that only staked BALN will qualify for network fees and voting weight. This change should be coming this month.
The next change will be bBALN. Where BALN is staked and “locked” in for a time period. 1 BALN staked for 4 years equals 1 bBALN; 1 BALN staked for 1 year equals .25 bBALN. As the locked time passes/reduces, the value of the bBALN reduces.
Example: 200 BALN staked for 1 year gives 50 bBALN; After 6 months it is 25 bBALN.
When bBALN launches, a change in LP rewards happens. Base LP BALN rewards will become 0.4x (40%) of their current rate. Users will be able to “boost” their LP rewards 2.5x (back to 100%) by staking BALN for bBALN.
The formula to gain the 2.5x boost is dynamic and depends on your percentage total liquidity provided to a specific pool and your percentage of total bBALN. You can find the exact formula in the bBALN thread.
You can add/stake more bBALN to increase your share of network fees and voting weight, but the maximum boost for LP rewards is 2.5x.
I hope that was helpful.
Hi @AwaxJago,
Thanks for the comprehensive response. It isn’t particularly clear as to what proportion of fees are earned or really how they are calculated. To give some context, in order to maximise returns, should I use BALN to create an LP with bnUSD or simply stake BALN. Without a formula or idea of what can be earned in fees, this is impossible to determine. I suppose the one point to consider is access to the airdrip. If I am right, this can only be claimed if I have staked BALN by itself. If I only had a BALN based LP, I would not be able to claim the airdrip?
Also, it would be a nice feature to evenly distribute unclaimed BALN airdrip tokens at the end of every week to entities that claimed. Is this something that could be incorporated?
In summary, I think that injecting BALN into an LP would currently be more lucrative than just staking BALN tokens (unless this distribution to claimers from non-claimers was incorporated).
All the best
I believe, LP providers earn 50% of fees (added to the liquidity they provided), and 50% goes to BALN stakers (currently stakers and LP).
To see fees, you can check the stats on the site.
In dapp click logo in top left to go to balanced site; then click logo in top right and “stats” from drop down menu, scroll down to pools to see stats for fees from the liquidity pools.
The airdrip is an Icon foundation initiative I believe; not balanced. Eligibility and weight of airdrip is based on traditionally staked/voted ICX. Balance network activity has no bearing on airdrip.
Maybe, Depending on your risk comfort level etc.
Make sure to check out impermanent loss.
Anyone please correct me if I am wrong on these points.