LP token staking
The LP token staking system is a dynamic, multi-reward system designed to incentivize users to provide liquidity and earn additional rewards. Here’s how it works:
Basic Liquidity mining
Users who provide liquidity to liquidity pools receive LP tokens as a receipt that represent their share of the pool.
These LP tokens can be staked at stabble to earn STB rewards.
Dynamic emission rates
The STB rewards are distributed across all liquidity pools based on the total amount of LP tokens staked and the weight assigned to each pool.
The reward for each staker is calculated as:
There are no fixed emissions per liquidity pool. Instead, the STB rewards are distributed dynamically based on the total weights of all pools.
Governance-managed emission weights
The weights assigned to each liquidity pool are managed dynamically by the stabble team. The weights determine the share of STB rewards a pool receives.
In the future, these weights will be managed through a governance system, allowing the community to influence the reward distribution.
Multi-reward capability
The system allows for offering additional rewards on top of the STB rewards.
Further, stakers can potentially earn double rewards if other reward tokens are configured for a specific liquidity pool.
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