🔓Staking
Stake $WHALES to earn revenue generated from the protocol.
Overview
Whales Market generates revenue from the fees collected across OTC markets. These fees are then distributed to $WHALES stakers (60%).
When users stake $WHALES, they receive $xWHALES, the staked derivative token. $xWHALES has two main functions:
To receive revenue share
To be used as collateral across all OTC markets.
Fee Collection and Reward Distribution
Fees are collected in various assets, depending on the blockchain (EVM, SOL, etc.) and the specific market.
To streamline the reward-claiming process, the protocol periodically converts these collected tokens into $WHALES tokens.
These transactions are transparent and can be viewed on the protocol's dashboard
The converted $WHALES tokens are then evenly distributed among the stakers as rewards.
Staking Contract Mechanics
The staking contract features a dual-asset pool, consisting of $WHALES and $xWHALES tokens.
Users stake $WHALES tokens to receive $xWHALES tokens in return.
By holding $xWHALES tokens, stakers are entitled to a progressively increasing quantity of $WHALES rewards.
The increment in rewards is achieved through the continuous purchase of $WHALES tokens with the generated revenue, which will then be allocated to the staking pool.
This process results in a healthy increase in the $xWHALES to $WHALES conversion rate, thereby augmenting the value for the stakers.
This mechanism also prevents post-claim dumping of $WHALES, as rewards are paid out incrementally, rather than all at once.
Withdrawal
Stakers have the option to withdraw at any time, converting their $xWHALES back into $WHALES tokens.
Although $xWHALES is tradable, at this stage there is no official liquidity pool on any Solana DEX. The conversion rate is only guaranteed through Whales staking.
Although rev-share is paid out in $WHALES tokens, these $WHALES tokens are purchased off the open market in a transparent manner. Therefore, the rewards in the staking contract do not inflate the supply.
$WHALES tokens from incentives allocation emissions are distributed separately to users, with a 4-year linear vesting schedule.
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