The $GET Token - Staking
During February 2022, the GET Protocol staking platform was launched. This staking platform allows GET token holders to stake their GET in order to receive rewards from ticketing activity occurring through the protocol.
The goal of the staking platform is to align all protocol participants around the long term vision of the protocol and as such receive rewards from its usage.
When a user deposits GET into the staking system, they will receive a new token in the form of the xGET token.
The xGET token is an ERC-20 token which represents a claim to your underlying GET within the staking system. xGET is transferable allowing for trading & other DeFi utility.
xGET follows the xToken model and can only accrue value against the underlying asset, in this case GET. This is known as a yield-bearing asset.
Or in more plain terms; xGET will always be redeemable for the same amount or more GET than deposited, never less, because xGET would be equal to
assetsDeposited + assetsRewarded. Therefore xGET is a share token that represents the underlying assets in the vault where there are only two ways for GET to enter; deposited by a staker, or transferred to the vault as rewards.
The staking system currently aggregates four sources of rewards that are regularly distributed:
- A percentage of Ticketing Fees from fuel usage is redeemable as staking rewards upon each ticket check-in or invalidation. This can create streaming rewards to stakers driven by real-world ticketing usage. 100% of UGF funded top-ups will go to stakers.
- A percentage of Trading Fees collected by protocol-owned-liquidity will be available as staking rewards. The GET collected fees will be transferred to the staking contract and the ETH/USDC collected fees will compound the position.
- Instant Withdrawal Fees are triggered when a staker withdraws their assets prior to the unlock time. This fee will remain on the contract and be distributed to remaining stakers.
- When a staker wishes to withdraw via a standard withdrawal their shares will be locked within the vault. The staker does not earn rewards during this withdrawal period but the underlying shares still acrrue this value, which is then redistributed to remaining stakers upon cancellation or withdrawal execution. These are known as Redistributed Rewards.
There are two ways to withdraw GET from the staking system. A normal withdrawal which comes with a 6 month unstake period or an instant withdrawal which has a % penalty that linearly reduces based on the time left on the unstaking period for a GET withdrawal.
By submitting a normal withdrawal request, the amount of GET selected for withdrawal will go through a 6 month unstaking period. Once the 6 month period completes, the user must execute the withdrawal in order to receive their GET. This execution period lasts for a 1 month time period. If the GET is not withdrawn during this 1 month period then the GET will return to being staked for the user.
If the user wishes to instantly withdrawal at the beginning of the unstake period, this comes at a 15% penalty that is deducted from the total amount of GET being unstaked.
This penalty linearly decreases over time based on the time left of the unstaking GET. Examples of this are:
Withdrawal at 6 Months Unstaking Left - 15% Penalty
Withdrawal at 3 Months Unstaking Left - 7.5 Penalty
Withdrawal at 1.5 Months Unstaking Left - 3.75% Penalty
For technical specifics and links to the staking system's contracts & audits, please visit our technical docs & refer to the 'Contracts' section: