Welcome to a new era of Stellar DeFi.
No Smart-contracts, no problem. We don’t wait.
At Inter-Stellar, we’re always trying to innovate and overcome issues that we see in the crypto, DeFi and GameFi industries and one of the more prominent issues we see on the Stellar network currently is the lack of single staking opportunities.
There are tons of liquidity pool provider opportunities, however, as an investor into those pools you become liable to impermanent loss (where your asset retention can be at risk), but there are just no or very few opportunities to earn a yield on a singular staked asset.
We looked at this problem and thought, without smart contracts how can we provide a yield to our investors that helps the protocol move forward, whilst benefitting the community.
So we had to innovate.
I want to introduce you to the Inter-Stellar Staking Cards.
This is a concept built on top of our previous article labelled ‘$ISX Bonds’. We decided to head down a different route to stay in line with US regulations and offer products that everyone worldwide can be a part of.
So, what is a Staking Card?
A staking card is a fungible token built on the Stellar network and minted through the platform Litemint. These will be available to purchase in the Inter-Stellar Litemint store when they go live: https://litemint.com/u/isx.
There will be various cards available fitting the following criteria to begin with:
- 3 vesting periods (30, 60 + 90 days).
- 6 staking amounts (10,000, 20,000, 50,000, 100,000, 500,000 + 1,000,000 $ISX).
The above may be a little confusing, so for example, the 10,000 $ISX staking cards will come in three different options. You can either choose a 30-day, 60-day or 90-day staking card.
The APR rate will be higher for the larger vesting period and will be subject to change over time, which we will amend based on demand, token price and total $ISX supply, but to begin, the APR’s will be the following:
- 30 day = 60% APR or 5% per month
- 60 day = 90% APR or 7.5% per month
- 90 day = 120% APR or 10% per month
We will release the staking cards in batches as we want to judge demand for the staking whilst monitoring the APR that holders receive.
Important note: Once you have purchased a staking card, your APR will NOT change. The APR is only subject to change when we mint new staking cards.
After the total vesting period for the staking card has finished, the fungible token will no longer earn any more rewards, so you have two options. You can send it back to its issuer address to burn it or keep it in your wallet as a souvenir.
It’s important to note that we have a process where we can see how much yield has been earned using the staking card, so please never purchase a staking card off of another owner as they may have already used up their vesting period. Only ever purchase an Inter-Stellar Staking Card from the official Inter-Stellar Litemint store.
Here’s the great part (although I don’t think it can get much better than 10% yield per month).
THIS IS A DEFLATIONARY PROCESS.
That’s right, you heard correct. I have my token zapper out and I'm ready to blast some $ISX into a black hole and out of existence!
If we sell a staking card for 1,000,000 $ISX tokens, we will burn the 1,000,000 tokens used to purchase the staking card. That’s 0.2% of the total $ISX supply…. Woah.
Yeah, I told you we were going hard in the token zaps.
“Oh but you’re minting another 1,300,000 tokens! How is that deflationary”.
Well, those tokens are going to be vested out of the ecosystem rewards anyway due to our tokenomics model, so we want to introduce a staking function that counteracts this hyper-inflationary model of token emissions and by burning the initial stake this will quickly pull the total supply of $ISX down, making it more scarce over time.
Wow, what a lot of information to digest (gulp). So soak it up and read the last final paragraph below that will explain how you will receive your rewards.
- You purchase the fungible token for X amount of $ISX let’s say 100,000 $ISX.
- This $ISX then gets zapped into non-existence, reducing the total supply.
- You then are eligible for your rewards, which will be redistributed over the total vesting period. So let’s say you stake for the 90-day vesting period so your rewards are 130,000. This will then be split into weekly payments that will be airdropped every Sunday to you.
- With this specific example, every Sunday you will receive 10,117 $ISX in your wallet. Think of this as Sunday payday!
Why 10,117 $ISX? Well 90 days is equivalent to 12.85 weeks. 130,000 / 12.85 = 10,116.73.
- Once you have received 13 weeks of payments (the last payment will be slightly less due to it being 12.85 weeks to earn full rewards) the staking card will no longer earn any yield.
That’s all folks.
Hope you’re as excited about this revolutionary concept as we are.
We are going to trial this for a period of time and make any adjustments that either we as a team or the community feel that need to be made as we are the first protocol to offer this type of staking mechanism, so we will learn through implementing it and receiving feedback!
Finally, we don’t have a set date for the staking cards to be released, however we’re aware that the community want these opportunities thick and fast, so I am going to work my Martian a*se off to get them implemented at some point over the next few weeks.
Find a team that innovates as fast as us, I dare you.
Leader of the Martian Army over and out.