Hey there Kangalians,
As you know the work is in progress related to staking and we have recently voted for the configuration parameters that would be applied for staking KANGAL and KANGAL-LPs.
Meanwhile, we have been thinking about the drawbacks of LP staking and were trying to find a solution. Problem is that providing liquidity on 50/50 AMM liquidity pool always has a high impermanent loss risk (except when both are stablecoins). We did come up with one solution that sounded good, but this would only hedge against loss of $TEAK rewards and could not help with the actual impermanent loss. Another important point is we would be giving $TEAK without any economical incentives, which would probably stop the show before it even starts…
The solution we are thinking of currently is expanding the DeFi aspect of the project to be able to properly reward staking which will be changing the roadmap. We would do this via:
Keep KANGAL staking, lower the APR-M and/or increase fees.
Instead of KANGAL-LP staking, add multi-staking (2 or more tokens), KANGAL + USDT, KANGAL + BNB, KANGAL + ETH, KANGAL + USDT + USDC… Then use other yield optimizers to get yield for these. Pay the yield earned + give $TEAK as reward, with more APR-M.
(In future, we could also add LP staking as a riskier option, but for the start, we would be using single token staking from yield optimizers, to have as little risk as possible.)
This way we would be providing a service that actually rewards the stakers without LP risks, and also create a revenue source for the project through fees taken from the yield earnings. As always these fees would be used with the allowance of the holders. Use cases of these funds would include a buyback and burn program for KANGAL and/or $TEAK, platform development, audits, marketing/listing expenses, etc.
- Let’s talk this through and decide on how to move on with it. We could do a vote for the pivot and the related development. We would first deliver KANGAL staking and then work on multi-staking. This would consequently change the roadmap.
- If we were to move on with this, KANGAL staking will not be delayed since the work done so far is still compatible with it. We do think we either need to drop APR-M or increase the fees on KANGAL staking though, maybe even both.