GARD
Earn a share of protocol revenues!
Last updated
Earn a share of protocol revenues!
Last updated
Staking GARD is analogous to putting your funds into a checking account. When a user's funds are staked via the WebApp they accrue interest (every single block on-chain) based on several factors. These factors are how much total GARD has been borrowed at any particular moment, how much GARD is currently staked, how much the protocol is charging users to borrow GARD, and if there are any additional incentives added in by the protocol.
By default, users earn 80% of the protocol's revenues which predominately come from GARD that is borrowed. In the following examples we will assume there are no liquidations happening (these boost protocol revenues) and that the cost to borrow GARD is 2%. If all GARD that is borrowed is immediately staked then users should expect to earn 1.6% APR. However, if half of the GARD that is borrowed is staked then users staking will earn an APR of 3.2%. If only a quarter of the GARD that is borrowed is staked then users can earn 6.4% APR! What's important to note is that all GARD paid out is both system revenue and overcollateralized.
Currently, a large portion of borrowed GARD is staked, however, we have received a grant from the Algorand Foundation which enables us to pay out extra rewards to users who stake GARD. As the Algorand DeFi ecosystem develops and there are more places to use one's GARD then less GARD should be staked natively (hypothetically). When fewer GARD are staked, this allows the APR staked GARD earns to increase. The greater the network effects of GARD, the more utility the token will have.
To stake/unstake GARD is simple, follow these steps:
Type in the amount of GARD desired to stake
Press "stake," review any transactions that your wallet asks you to sign, and then sign them
To unstake, repeat the above steps substituting the "unstake" button
