Staking V2 Come Get Some - Kwenta

Staking v2 goes live today, bringing several additional features and structural changes to the staking mechanism. To accomplish the changes approved by governance (KIP-42/58/62/77, and 86), Kwenta developers needed to build new smart contracts.

By implementing a checkpointing system to track staked balances, Staking v2 enables early vest fee distribution, on-chain voting, on-chain rewards, and much more! Need a complete rundown? Let’s dive in!

The V2 Migration Process

If you are currently staking $KWENTA in the legacy staking contract, you will need to claim rewards,

in the new contract.

Head to the Migration Guide for step-by-step instructions, then visit the staking page to migrate.

Only $KWENTA staked in the new v2 contracts will count towards any DAO voting power or receive inflationary/trade rewards!

What’s New in v2?

With the initial Staking v2 release, $KWENTA stakers can utilize several new features immediately.

Escrow Transferability

Users may now transfer v2 escrow entries without vesting, allowing them to consolidate escrow balances, migrate staking to a new wallet, or secure entries in a compromised wallet while preserving their full balances.

Note: v1 escrow balances are NOT transferrable until vested, and still subject to early vesting fees

Unstaking Cooldown Period

All stakers should be aware of an unstaking cooldown period introduced in Staking v2, which discourages disruptive, short-term actions such as buying votes, capturing fee revenue, and rewarding long-term participation. At launch, this cooldown will be set for two weeks from the last interaction with the StakingRewards contract and can be changed via governance.

Any interaction with the StakingRewardsv2 contract, including compounding, staking liquid Kwenta or claiming staking rewards, will reset the countdown to 14 days. Vested escrow is not subject to this cooldown.

Integrator Contract Support

Staking v2 ensures that users who staked via smart contracts are not left behind. The new integrator contract support introduces additional functions to allow integrators and other contract-based stakers to claim v2 rewards.

Early Vest Distribution and Improved UX

There's a shift in the architectural framework based on feedback from auditors. Previously, we thought to use a EarlyVestFeeDistributor contract for disbursing early vest fees. However, that has changed:

Direct Distribution: Early Vest Rewards will no longer pass through intermediaries. They will now be sent directly to our staking contract.
Simplified User Interface: With this new method, users do not need to engage with a separate claim UI.
Variable APY: The Annual Percentage Yield (APY) for staking will not remain constant. It will alter every week, contingent on the amount vested in the preceding week. It's worth noting that each week is viewed as an epoch, with a new cycle commencing every Thursday when fresh rewards are minted.

This change hopes to enhance the user experience, making it more streamlined & passive.

How we did it:

With V2 staking and implementing early vest fee distribution, an intermediary contract stakingRewardsNotifier is introduced. This contract retains all early vest fees per epoch. Once stakingRewardsNotifier obtains weekly inflation, it distributes the minted inflation & collected early vest fees to the stakingRewards contract. Consequently, stakers earn additional tokens in the subsequent epoch linearly, termed as “rewards.”

The new flow for staking rewards distribution provides additional flexibility

Automated Compounding

As proposed in KIP-42, Staking v2 introduces the getRewardOnBehalf and stakeEscrowOnBehalf functions. These powerful functions, paired with allowing delegation, empower individual stakers to utilize secure custom built, or third party solutions to automate compounding of rewards.

Upgradability

Staking v2 is an essential upgrade that enables highly requested features such as escrow migration and the distribution of early vest fees to stakers. Migration to the new Staking v2 contracts also brings several backend improvements, including better on-chain data and upgradability, ensuring future feature upgrades are able to utilize more flexible and robust infrastructure.

Still have questions? Come visit us in discord for clarification on this process or how Staking v2 may impact you!

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