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🖼️NFT Staking

Stake your PPY as an NFT to earn stPLS rewards!

Introduction

NFT Staking allows users to stake their NFTs and, in doing so, lock associated PPY tokens. In return for staking, users earn rewards over time in the form of stPLS tokens. This guide provides a detailed overview of the mechanics of NFT Staking within the Project Pi liquid staking ecosystem.

Key Components

  • PPY Tokens (PRC404): Tokens that combine ERC20 (fungible) and ERC721 (non-fungible) standards.

  • stPLS Tokens (ERC4626): Liquid staking tokens you earn as rewards. They represent staked PLS that grows in value over time.

  • ProtocolDAO: A governance contract where PPY holders can vote to adjust protocol parameters like fees and staking limits.

How Staking Works

Staking Your NFTs

  1. Ensure Ownership: You must own the PPY NFT you want to stake.

  2. Check Staking Limit: You can stake up to 3 NFTs. This limit can be changed through governance voting.

  3. Stake Your NFT: Call stake(tokenId) with your NFT's token ID.

  4. Locking PPY Tokens: When you stake an NFT, 100,000 PPY tokens are locked per NFT.

  5. Start Earning Rewards: Begin earning stPLS rewards based on the PPY tokens you've locked.

Example:

  • You own PPY NFTs with token IDs 101 and 102.

  • You stake both NFTs.

  • 200,000 PPY tokens are locked (100,000 per NFT).

  • You start earning stPLS rewards based on your locked tokens.

Unstaking Your NFTs

  1. Unstake Your NFT: Call unstake(tokenId) with your staked NFT's ID.

  2. Unlock PPY Tokens: The 100,000 PPY tokens per NFT are unlocked and returned to your balance.

  3. Adjust Rewards: You no longer earn rewards from the unstaked NFT.

Example:

  • You unstake NFT #101.

  • 100,000 PPY tokens are unlocked.

  • Your stPLS reward earnings decrease accordingly.

Earning Rewards

Source of Rewards

  • Redemption Fees: When users unstake their stPLS back into PLS, a 0.5% redemption fee is applied.

  • Rewards Pool: 25% of the redemption fees go into the rewards pool for NFT stakers.

  • Governance Control: PPY holders can vote to adjust the redemption fee and the allocation to the rewards pool.

Reward Calculation

Your rewards depend on:

  • Total Rewards Pool: The amount of stPLS tokens available for distribution.

  • Your Share: The proportion of PPY tokens you've staked relative to the total PPY tokens staked.

Example:

  • Total redemption fees collected: 10,000,000 stPLS.

  • Rewards pool contribution: 25% of 10,000,000 stPLS = 2,500,000 stPLS.

  • Total PPY staked by all users: 1,000,000 PPY tokens.

  • Your PPY staked: 200,000 PPY tokens.

Your Reward:

\ \text{Your Share} = \left( \frac{\text{Your PPY Staked}}{\text{Total PPY Staked}} \right) \times \text{Total Rewards Pool} \
 Your Share=(200,0001,000,000)×2,500,000=0.2×2,500,000=500,000 stPLS\ \begin{align*} \text{Your Share} & = \left( \frac{200,000}{1,000,000} \right) \times 2,500,000 \\ & = 0.2 \times 2,500,000 \\ & = \mathbf{500,000\ \text{stPLS}} \end{align*}

Claiming Rewards

  • Claim Your Rewards: Call claimReward() to transfer your accumulated stPLS rewards to your wallet.

Example:

  • After accumulating 500,000 stPLS tokens, you call claimReward().

  • 500,000 stPLS tokens are transferred to your wallet.

Conclusion

Staking your PPY NFTs is more than just earning rewards—it's about engaging with a unique use case in the Project Pi liquid staking ecosystem. As the collateral token for the main liquid staking protocol, PPY, built on the PRC404 standard, combines both fungible and non-fungible aspects. This innovative approach not only supports validator participation but also offers additional benefits through NFT Staking, where users can lock their PPY NFTs and earn stPLS rewards. By integrating these features, PPY enhances its utility and value within the ecosystem, providing a versatile and rewarding experience for all participants.

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