How to Stake and earn DSCVR on Prism Network
How to Stake
If you would like to create LP tokens, head to https://app.uniswap.org/#/add/.
Input the two underlying tokens and combine them together to create your LP tokens. In this case the two underlying tokens would be DSCVR and ETH.
Press supply at this step. And accept the transaction. You will then be asked to confirm your supply
After this process. Head to https://Prismnetwork.io/pools to view our Pools. Click on the pool you would like to join.
You will need to approve the tokens for use on the Pool contract, and then you will be asked how much you would like to stake. Follow the prompts and confirm your transaction popup to enter the Pool.
What are Pools?
Pools, also referred to as Liquidity Pools, allow users to stake one token in order to earn rewards in another token. This process can be known as ‘farming’. The purpose of a Pool is often to encourage users to create LP Tokens (Liquidity Pool Tokens, i.e. DEF/ETH, DEF/PRISM, DSCVR/ETH etc.). This improves liquidity for the trading pair, while also rewarding those who provide liquidity and giving them an extra benefit to offset any impermanent loss (https://uniswap.org/docs/v2/advanced-topics/understanding-returns/).
Rewards yielded from staking in a pool are variable, changing based on a few factors:
- Your personal stake
- Collective stake
- Amount of rewards in the pool
- Duration of the pool
The amount of earned tokens is automatically calculated and allocated to each staker, who can then claim the tokens whenever they choose to.
Example Pool
Let’s run through an example Pool to demonstrate how they work.
- TEST/ETH -> 3000 TEST (Duration 30 Days)
In this Pool, users would input TEST/ETH LP Tokens, and farm TEST tokens over a period of 30 days. This means that every day ~100 TEST tokens are distributed as rewards to stakers.
If this Pool launched, and only UserA input 1 TEST/ETH, they would be farming 100% of these yields. If UserB joins with 1 TEST/ETH as well, from then on both UserA and UserB will be splitting the yield 50/50 as they both own 50% of the total stake.
If UserC was to then join with 4 TEST/ETH, they would own 4/6 TEST/ETH in the Pool which is ~66.66% of the total stake. This means that each day they would be earning 66.66 TEST tokens.
What is Boosting?
Boosting is a means to increase your effective weighted stake in a Pool. This can be done via purchasing boosts or by simply minting $PRISM.
To demonstrate how this works, the example from above will be continued.
- UserA has 1 TEST/ETH in the Pool (~16.66%).
- UserB has 1 TEST/ETH in the Pool (~16.66%).
- UserC has 4 TEST/ETH in the Pool (~66.66%).
UserB activates a 50% boost. This increases their weighted stake to 1.5 TEST/ETH, meaning they now own ~23% of the Pool and will begin earning more immediately.
How to Boost
- Mint PRISM (global boosts for all pools that you are staked in)
- purchase boosts for individual pools (DEFLCT, WBTC, WETH, PRISM)
Things to note:
- Boosts are stackable up to 250%
- PRISM spent as boosts will be burned from supply forever.
Global Boost
When you mint PRISM, you become eligible for our Global Boost. Which boosts every single pool you stake in.
- 15 historically minted prism = 5% global boost
- 30 historically minted prism = 10% global boost
- 75 historically minted prism = 25% global boost
- 150 historically minted prism = 50% global boost
Global boosts boost every single pool you stake in, regardless of network.
For more information on how to mint PRISM and it’s benefits to the Prism Network Ecosystem head here https://app.prismnetwork.io/mint
Pre-Staking
Due to how the Pools work, if they were enabled to go live the second the contract was deployed then the first few users to join would be harvesting a very large % of the rewards. This creates an unfair advantage for those who are not able to be present the moment the Pool contract is deployed.
Therefore, we have implemented a 24 hour pre-stake period. During this time frame no rewards are distributed, but users can stake their LP tokens in order to be ready for when the rewards begin to flow.
