A guide to staking Stackswap tokens and earning more $STSW on a permissionless DEX
For instructions on connecting your Leather Wallet account on the Stackswap App, see this article.
Any user with a Hiro Wallet account, $STSW tokens, and STX for transaction fees can stake tokens on the Stackswap App.
Users who participate in staking on Stackswap receive two-fold rewards:
- additional STSW rewards
- vSTSW (Stackswap’s governance token)
Much like LP tokens for liquidity provision, vSTSW is sent to staking users’ wallets as a receipt or proof of staking. When the user’s STSW is unstaked, the vSTSW is burned in exchange for the STSW being returned to the user’s wallet.
Staking users are rewarded by the Stackswap protocol as the long-term holders of $STSW and longer-term supporters of the project. It also allows Stackswap to give voting power to the protocol’s biggest supporters in governance issues. Secondarily, it incentivizes users to hold on to their $STSW, offering price stability of the token.
We can look into further detail of the upcoming rounds by clicking on the section underneath the Current Round information.
Select “Stake (Next Round)” on the screen to progress to the staking screen.
Here, the number of rounds for staking can be set, along with the total amount of STSW to be staked. Further information is shown:
- Current Round: current round number of the staking rounds
- Current Block Number: current block number on the Stacks blockchain
- Start Round: the round from which the user is eligible for staking rewards
- Start Block Number: the block number on the Stacks blockchain that the farming period will start from
- End Block Number: the block number on the Stacks blockchain that the farming period will be ending on
Select “Deposit” on the screen to confirm your staking details. The Hiro Wallet pop-up will appear, and will allow you to check the final details before you confirm it.
Claiming Staking Rewards
Select “Claim Reward” on the screen to progress to claiming staking rewards.
Select a round that has passed, that you are eligible for rewards from. Rounds from which rewards are available from will show a value in “Estimated Rewards”.
Selecting “Claim Rewards” will have the Hiro Wallet pop-up appear, and will allow you to check the final details before you confirm your transaction.
Stackswap will provide a link to your transaction on the Stacks Explorer.
Select “Unstake STSW” on the screen to start unstaking STSW.
To gain a better understanding of unstaking and cooldown periods, see our litepaper here.
Once unstaking is available, first initiate cooldown by selecting “Cool Down”.
After cooldown, the “Unstake STSW” button will become available to click to take you to the next screen.
The unstake function is available to target specific instances of staking that have occurred and may have overlapping round times.