[Proposal] [Concluded] Deciding on APR-M and other parameters for the staking contracts

Hey there Kangalians,

As we are finishing up the work on staking contracts and almost ready for the audit, we need to start the discussion on the parameters that we need to decide on for the contracts.

The main parameter we need to decide is Annual Percentage Rate of Mint (APR-M), which will be showing how much $TEAK you will get in one year for staking X amount of KANGAL.

We belive this should be somewhere between 20 to 40 percent for KANGAL staking and 80 to 160 percent for LP staking. The main idea is to clearly incentivize staking KANGAL/BNB LP tokens users get for adding liquidity on PancakeSwap. To calculate the KANGAL amount in KANGAL/BNB LP, we will be multiplying KANGAL amount with 2, so that it will also account for the BNB added.

Other configurations we need to make a decision on are:

  1. minimum number of days to stake (to be eligible for getting APR-M reward)
  2. Processing fee for the $TEAK reward (taken when you withdraw)
  3. Processing fee for staked KANGAL (taken when you withdraw)

Rewards will be calculated daily, so that’s why we need to set the minimum time for withdrawing as a day. We believe having a limit here will make things more stable since to get the $TEAK reward you will need to keep your KANGAL staked at least for a day.

Processing fees will be directly going to a DAO wallet we will create for this, the Core Team will not have any direct allowance on this, all spending will require a vote, similar to Community Treasuty.

For these parameters, 1-day minimum, 1% $TEAK, and 0.1% KANGAL fee may be a fair start. Of course these are just examples to get the conversation started.

For your suggestions you can use a template like:

APR-M for KANGAL staking: 30%
APR-M for KANGAL-LP staking: 90%
Minimum day limit: 1
Minimum number of KANGALs to stake: 500K
Processing fee for $TEAK: 1%
Processing fee for KANGAL: 0.1%


Let’s discuss this for ~2 days and start the vote on this on 29th or 30th of May. :v:

6 Likes

Great work with the whitepaper guys and getting this proposal together so quick.
My suggestions are as follows:

APR-M for KANGAL staking: 40%
APR-M for KANGAL-LP staking: 120%
Minimum day limit: 2
Processing fee for $TEAK: 1%
Processing fee for KANGAL: 0.1%

Looking forward to the vote and seeing the results implemented.
Peace!

6 Likes

One small update, we also need to decide on minimum number of tokens staked, I think 500K KANGAL and corresponding amount of LP tokens (which is around 75 LP tokens) is a good limit for this.

3 Likes

Well done guys!
My suggestion ;
APR-M for KANGAL staking: 15-20%
APR-M for KANGAL-LP staking: 70%
Minimum day limit: 7
Minimum number of KANGALs to stake: 1M
Processing fee for $TEAK: 1%
Processing fee for KANGAL: 0.1%

I think , this configuration is good for price stability. Inflation is relatively low and the min expiry period is relatively long and some buying pressure on Kangal token.

Now a days, stable coin interest rates dropping , we need competitive perspective ( That means money flows to dollars )

If it is possible to create more than one pool, different options can be cool .

2 Likes

I think 500k is a good minimum amount to stake. Even if we were to judge from our ATH price (0.003), one would only need to purchase $150 of Kangal to stake.

2 Likes

My suggestion ;
APR-M for KANGAL staking: 35%
APR-M for KANGAL-LP staking: 90%
Minimum day limit: 3
Minimum number of KANGALs to stake: 500k
Processing fee for $TEAK: 3% ( 1.5 burn?, 1.5 lottery?) i am not sure if there will be burn?
Processing fee for KANGAL:1.5% if withdraw before min. day limit, if not 0%

2 Likes

Hi there. Can any chosen Config be changed at some point in time? I’m thinking for example 500k today might be a heck of a lot more money 2-3 years from today …

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Yep, these parameters will be configurable after deployment as well.

1 Like

APR-M for KANGAL staking: 28-42% using 30% as a psychological barrier
APR-M for KANGAL-LP staking: I couldn’t decide actually. Impermanent loss can be extreme for early LP suppliers. The value of the $TEAK may close that gap, but it is hard to decide. What are your ideas about impermanent loss? Should we consider it or not?
Minimum day limit: 3, we can slip through the weekends when the market is unpredictable
Processing fee for $TEAK: 1%
Processing fee for KANGAL: 0.1%
Minimum number to stake: I agree with @Harv, 500k seems fair.

These are my ideas, but I know nearly nothing about tokenomics. Deciding these numbers by asking the community may not be beneficial. Don’t we need some short, mid and long-term calculations for that?

Looks like I have more questions than answers :sweat_smile:

2 Likes

Hey there @phiztec

About impermanent loss, there is not much we can do about it directly, considering how liquidity providing works on PancakeSwap right now. But there is one thing we will be doing to make it better for LP stakers, which is multiplying the share of KANGAL amount by 2 for the provided KANGAL/BNB, to account for added BNB.

About and asking the community about tokenomics: tbh, this is an experiment and we will see how things work out. Since the only way $TEAK is minted will be through staking KANGAL or KANGAL-LP, if we want to change the emissions we will be able to do it through the same process we are going through right now, on top of that $TEAK usage in the ecosystem will be burning some of the supply, so we will be able to experiment further by gauging it in different ways. The value provided by the ecosystem will be the same, regardless of the number of $TEAK tokens in circulation, the only thing that comes to mind is that people staking at the very start can be lucky if in the future we decide to lower the APR-Ms.

2 Likes

My suggestion ;
APR-M for KANGAL staking: 40%
APR-M for KANGAL-LP staking: 90%
Minimum day limit: 1
Minimum number of KANGALs to stake: 500K
Processing fee for $TEAK: 1%
Processing fee for KANGAL: 0.1%

2 Likes

Let’s give this one more day and start the vote tomorrow evening (GMT) :v:

1 Like

It was nice interaction . Maybe we should continue discussing this issue for a while. :cowboy_hat_face:

2 Likes

One question on voting, all my KANGALs are in the form of KANGAL-BNB LP. Does the snapshot consider those tokens so that I will be able to vote?

2 Likes

My suggestions:
APR-M for KANGAL staking: 40%
APR-M for KANGAL-LP staking: 120%
Minimum day limit: 7
Minimum number of KANGALs to stake: 500K
Processing fee for $TEAK: 1%
Processing fee for KANGAL: 0.1%

2 Likes

Nope, unfortunately, snapshot does not have support for this. In future we will work more on governance and have our own solution instead of using a 3rd party, it will be something to work on at that point.

1 Like

This would build up the treasury faster. We do not want to hyper inflate anything … perhaps a teared system would be good. We start out at 100% for the 1st 3 months of steaking then 75% then 50% and finannaly 25% where it stays… that is for the LP and something similar for the regular stake.

3 Likes

Yeah, tiered staking will be coming in the near future after the first version is live. We can vote one more time at that point for what would be the tiers and what rates/parameters to use.

1 Like

Kangalians, proposals are created on our Snapshot spaces and ready to be voted on.

It will be ending on June 4th, 2021 7 PM (GMT).

Vote on ETH side:
https://snapshot.org/#/kangal.eth/proposal/QmTsfMhnFLaCyaroQ1tE3GuuFFFNtVLy7aZ8SSBsES51AY

Vote on BSC side:
https://snapshot.org/#/kangal-bsc.eth/proposal/QmdqvHhBUbNCEnN12g5N7zPGzu1oEz72q9wJNa9fTb4vdf

3 Likes

I cast my vote :cut_of_meat:

Make Kangal Great Again :upside_down_face:

2 Likes