Memecoin Staking Mechanism

DegenVerse has optimized its staking mechanism to allow users to enjoy high yields while minimizing asset risk. The system features the following innovations:

Intelligent Dynamic Yield Staking

• Traditional fixed-yield staking can be highly sensitive to market volatility, especially given the inherently high volatility of Memecoins. DegenVerse employs an intelligent dynamic yield distribution mechanism to ensure stable, sustainable returns:

• Base APY + Additional Floating Yield: Users receive a fixed base yield, which adjusts dynamically based on trading fees and lending rates to maintain the health of the liquidity pool.

• Here, R0R_0 is the base yield rate, UU is the market utilization rate, and RscaleR_\text{scale} is the expansion factor for market utilization.

• Auto-Compounding: Earnings from staking are automatically reinvested, eliminating the need for manual operations and increasing long-term returns.

• Gradual Unlock Mechanism: Long-term stakers receive progressively higher rewards, encouraging extended holding and reducing sell pressure.

Liquid Staking

• For users unwilling to lock up their assets, DegenVerse offers a liquid staking solution:

• After staking, users receive an equivalent amount of stMemecoin, which they can still trade or use across other DeFi ecosystems, increasing capital efficiency.

• A price stabilization mechanism for stMemecoin is maintained through a liquidity buffer pool, preventing drastic price swings.

Staking Insurance Mechanism

• To reduce the risk associated with staking, DegenVerse introduces a staking insurance system:

• Users can opt to lock a portion of their rewards as an insurance reserve, compensating for losses in extreme market conditions.

• The insurance fund is sourced from trading fees and additional revenue, ensuring ample liquidity for payouts.