Introducing xREF, staking feature on Ref
Protocol revenue sharing model
The team is very glad to announce the launch of single-sided staking for REF token. By staking their REF, users have the opportunity to earn fees generated by the protocol. In other words, any REF holders can have a share in the revenue earned by Ref Finance. The icing on the cake; there is no Divergence Loss.
Head over to our Staking User Interface to stake your REF today (rewards only start in the next ~48 hours).
Core Concept
- Every swap executed on Ref Finance generates revenue for the protocol. Following the protocol upgrade [1] on the 16th of December 2021 [2], every pool has the following fee structure.
- 75% of the protocol fee will be used to buy back REF tokens, which will be distributed to stakers of REF in the form of more REF.
- 25% of the protocol fee will be used to buy back REF and will be allocated to a Community/Provision treasury. This treasury will be used to fund grants and other community initiatives/programs.
Revenue Sharing Model and Execution
- The number of REF tokens distributed to REF Stakers will be based on the realised revenue.
- The realised revenue, which corresponds to the tokens withdrawn from the protocol liquidity shares, will then be used to buy back REF token.
- 75% will be shared with REF Stakers. 25% will be allocated to a Community/Provision treasury.
- Moving forward, the protocol fee will be collected on a quarterly basis, and distributed on a quarterly basis.
- The first staking rewards timeframe will happen from the 18th of January to the 18th of April.
The process for the first buyback has already started [3] and can be followed/commented on our Governance forum.
Boosted Rewards
Staking rewards will have boosted markups for the first three years (subject to change):
- Year 1: 2x
- Year 2: 1.5x
- Year 3: 1.2x
- Year 4: 1x
xREF
Inspired by the veCRV model, xREF will soon allow our holders to participate in the governance of the protocol by directly voting on key proposals.
The voting mechanism is currently being discussed by the community [4] on our Governance forum.
The team is also discussing with key partners in the ecosystem to increase the utility of xREF. Like stNEAR is used as collateral on OIN Finance, why can’t xREF be used as collateral in the future? 👀
By Didier, Product Manager
References
[1] https://gov.ref.finance/t/protocol-fee-upgrade/370
[2] https://app.astrodao.com/dao/ref-finance.sputnik-dao.near/proposals?status=approved
[3] https://gov.ref.finance/t/exchange-management-withdraw-protocol-fee/413
About Ref Finance
Ref Finance is a community-led, multi-purpose Decentralized Finance (DeFi) platform built on NEAR Protocol.
Ref takes full advantage of NEAR’s low fees ($0.005 per swap), one-to-two second finality, and WebAssembly-based runtime (hello, Rust smart contracts!).
Using the Rainbow Bridge (NEAR <> ETH), traders can utilize the billions of dollars in ERC-20-compliant assets from Ethereum, and eventually, from any chain (BSC, Polygon/Matic, Cosmos/IBC, and others) on NEAR.
Ref Finance’s first product is an automated market maker (AMM). It is similar to Uniswap, with a few changes (not limited to):
- Multiple pools in a single contract
- Ability to trade across pools atomically in a single transaction
- Customizable swap fee per pool, giving to LPs the possibility to charge higher fees for volatile tokens
Make sure you are following us on Twitter for the latest news and announcements, and do make sure you join our Discord or Telegram for deeper levels of engagement with our Team and Community!
Disclaimer
Ref Finance does not endorse or promote any of the projects, platforms or cryptocurrencies mentioned in this blogpost. Any descriptions of functionality and services provided are for information only. Ref Finance is not responsible for any loss of funds or other damages caused as a result of using the projects, platforms or cryptocurrencies described above.
