TGT Staking V2 Mechanism
In this article, we aim to explain the working of $TGT staking V2. As most of you already know, TGT staking has been migrated to Arbitrum for real yield, which means stakers will receive USDC - a 50% share of the fees of Thorchain & Maya transactions will be given back as cashback.
The two main sources of revenue for THORWallet are Thorchain and Maya Protocol affiliate fees paid by users. Here, we briefly describe how we have automated the process of the cashback distribution.
Thorchain & Maya have a unique feature that allows affiliates to set the preferred asset for payout. Fees are decentrally collected and transferred to arbitrum staking contract with the support of Circle’s decentral CCTP.
Staking contract address: https://arbiscan.io/address/0x6745c897ab1f4fda9f7700e8be6ea2ee03672759
TGT contract address:
https://arbiscan.io/address/0x429fed88f10285e61b12bdf00848315fbdfcc341
Once the USDC is received, the staking contract distributes the rewards according to the staker’s pool share. Let’s take a simple example:
Suppose 100 users staking 100K TGT each. The total pool value will be 10M TGT, and the pool share of a single address will be 100K / 10M TGT = 0.01 (1% pool share).
If 10,000 USDC has been received by the contract to distribute to the stakers, each staker will receive 100 USDC in rewards (1% of 10,000 USDC). Native USDC is distributed to stakers:
USDC Contract address: https://arbiscan.io/token/0xaf88d065e77c8cc2239327c5edb3a432268e5831
This outlines how the new TGT staking process operates. It is a unique and regulatory secure mechanism to distribute real yield from fees back to the users (stakers) who paid it in the first place in the form of a cashback. It’s a cashback of Thorchain & Maya to the Thorwallet community (stakers). It is not regarded as a dividend. Also relevant, everything is fully decentralized via Thorchain and Maya protocol as well as smart contracts, without middleman and 3rd party involvement. It makes sure we are compliant with upcoming DeFi regulations and that we are not regarded as a security token, which (unfortunately) so many real yield mechanisms in the space are.
Onwards!
Your THORWallet DEX team
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