🔐Staking
Staking
Earn revenue from our ecosystem by staking your Swirl Social Token.
Overview
Swirl Social generates revenue through the collection of fees across its social investing ecosystem. These fees are subsequently distributed to SWIRL stakers, constituting 60% of the total revenue. Upon staking $SWIRL, participants receive $xSWIRL, a derivative token that serves two primary purposes:
Entitlement to a share of revenue
Access to premium features within the Swirl Social Investing Application.
Fee Collection and Reward Distribution
Fees are gathered in various assets, dependent on the blockchain utilized (EVM, SOL, etc.) and the specific market context.
To simplify the process of claiming rewards, the protocol periodically converts these accumulated tokens into $SWIRL tokens.
These transactions are transparent and can be monitored via the protocol's dashboard.
Subsequently, the converted $SWIRL tokens are equitably distributed among stakers as rewards.
Staking Contract Mechanics
The staking contract operates with a dual-asset pool, comprising $SWIRL and $xSWIRL tokens.
Users stake $SWIRL tokens to acquire $xSWIRL tokens in return.
Holding $xSWIRL tokens entitles stakers to an increasing quantity of $SWIRL rewards over time.
This increment is facilitated by continuously purchasing $SWIRL tokens using generated revenue, which are then allocated to the staking pool.
Consequently, this process enhances the $xSWIRL to $SWIRL conversion rate, thereby amplifying value for stakers.
Additionally, this mechanism mitigates the risk of post-claim dumping of $SWIRL, as rewards are disbursed incrementally rather than all at once.
Withdrawal
Stakers retain the option to withdraw at any time by converting their $xSWIRL back into $SWIRL tokens. While $xSWIRL is tradeable, an official liquidity pool on any Solana DEX is not currently established. The conversion rate is exclusively guaranteed through #SWIRL staking at this juncture.
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