What Is The Rewards Pool?

staked.finance is a collateralized stablecoin issuance platform. Users can stake ETH as collateral in a smart contract ("Reserve Pool") and issue stablecoin tokens (PAYD). The PAYD can be transferred to their own Ethereum wallet address or to the rewards pool to earn ETH rewards. Any staked.finance user may stake PAYD to the rewards pool, even if they do not have a cache. The rewards pool's purpose is to stablize the stablecoin by burning PAYD upon cache liquidations, and reward users with the liquidated ETH collateral (shared between users in proportion to their deposit size).

Rewards Pool holds the following ETH rewards from:

  1. Liquidations of Caches.
  2. ETH2 EVM staking rewards.
  3. ETH rewards from ETH2 EVM mining rewards (released after Ethereum 2.0 is launched).

Fundamental Mechanisms

  • Users' staked PAYD determines the proportional rewards a user gets.
  • Users' staked PAYD is offset against liquidated caches' PAYD issued and depletes over time.

PAYD is overcollateralized by ETH in the cache. In normal operations, when caches are liquidated the rewards pool users will gain the liquidation rewards from the extra collateral put up by the cache users when issuing PAYD, up to 15%. The platform checks for liquidations every 3 hours or when price changes by 0.5%.

The PAYD staked in the rewards pool will be proportionally burnt whenever a liquidation event occurs, and requires top up to continue earning any rewards.

Managing Rewards

Reward pool users can stake more PAYD to gain more proportion of rewards or unstake their PAYD any time. Rewards can be claimed at time of earnings. Learn more about how rewards are paid out.

staked.finance is complying with regulatory requirements and is in the midst of a licence application with the Monetary Authority of Singapore. Please note that during this period, our documentation may change and be refined over time.