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Stake for Dividend

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Stake for Dividend

πŸ“ Dividend Pool: https://apps.standard.tech/dividend

Dividend Pool is a unique module on our DEX and it’s worth highlighting the mechanism and how it brings an intrinsic value to governance token STND holder.

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What is Dividend Pool?

Standard Protocol is DAO, and owning it will yield passive income based on our DEX fees, including transaction and stability fees earned from collateral redemption, and it’s a way to give back to our community.

How does the Dividend Pool work?

We charge a 0.3% transaction fee, 0.25% will be yielded as LP rewards for LP providers, the remaining 0.05% of it will be taken out and put into our Treasury. The 0.05% will be split into three portions: Tech, Maintenance & Growth, DAO, & Dividends. Hence, the dividends Dividend PoolΒ comes from a portion of transaction fees collected as a reward in the form of dSTND to give back to our community.

What is dSTND?

dSTND is a dividend-bearing token to decouple the utility conflict between Bonding (for reward) and DAO. User bound STND to mint dSTND as a reward representation of Dividend Pool reward.

What is the Dividend Pool mechanism?

  1. DEX fee will first be converted to STND & stored in dSTND contract vault.
  2. User bound STND to mint dSTND, a reward representation of Dividend Pool reward.
  3. When users unbound STND, their dSTND will be consumed, principle STND and DP reward (in STND) will be returned.

What are the benefits of this new design?

  1. STND-dSTND will be on DEX for those who seek leverages on STND
  2. dSTND can be collateralized in our vault for stablecoin (USM) minting
  3. dSTND will be able to bridge freely to other chains through our portal.
  4. It's computational cheaper than the previous version. i.e. reduced gas fee.

How is the Dividend Pool reward being calculated? How much will I get by staking STND for dSTND?

User will receive the reward when Fees accrued from the exchange are sent to the dSTND contract. This can be noticed when the ratio of dSTND to STND changes.

For example: If you stake when 1dstnd = 1stnd, you are essentially paying 1stnd for each 1dstnd. When fees accrue to the dSTND contract, the ratio will have changed to 1dSTND = (1 + @) STND. When you unstake, you will get (1 + @) STND for each 1dstnd you have, which is more than what you have staked.

Step-by-step Guide: How to Stake and Earn Dividend?

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