Avocado DAO launches its eagerly-awaited $AVG staking program

Introduction

Later this week, Avocado will be launching our staking program. The program will enable token holders to earn AVG rewards which will start accruing upon staking.

We know the community has been eagerly awaiting this addition to Avocado DAO, and we’ve been working hard on developing an innovative staking program for our token holders to benefit from their $AVG investment. This article will elaborate on the significant choices we have made in the design of our program. On launch day, we will publish a further article that will provide specific instructions on how you can stake your AVG tokens to earn AVG rewards.

Key design choices

Initially, we are launching one single-sided vault where you stake your AVG and are rewarded in AVG tokens. In the near term, we expect to launch further vaults, including for staking AVG:BNB LP — but for the moment this article will focus exclusively on our first release.

In designing our single-sided AVG vault, we have made a number of key design choices as follows:

  • We give AVG token holders a choice to lock up their tokens for a minimum of 3, 6, 9, or 12 months with APR increasing with maturity
  • As we are using the BNB Chain, you can expect gas fees to be modest
  • Rewards are calculated on each block. Stakers can claim their rewards at any point in time, conscious that each claim incurs gas fees, therefore stakers should consider how often they exercise their right to claim rewards
  • Once a reward is claimed, that reward is launched immediately (without a cliff) into a vesting contract of 6 months, by which the reward can only be withdrawn upon conclusion of the vesting period. We quite deliberately chose not to use a cliff, nor have multiple releases of reward through the vesting period, as we placed a premium on transparency and ease of use.
  • Each vault will be open for staking for a defined period. As each vault closes for staking, we expect to launch new vaults to replace it.

We believe these design choices are ones we can build upon in future staking contracts we launch and that they will serve to reduce the circulating supply of AVG tokens in the market at any given time.

For those of you who are interested in some of the more technical nuances of the design, the following may also be of interest to you:

  • The APR is a simple interest calculation which is not compounding — rewards are earned and it is up to the staker whether those rewards are reinvested or otherwise used.
  • We use a Fixed APR return model rather than a Fixed Reward return model whereby Avocado DAO controls the maximum amount of deposits that we will accept into each vault, and we set the APR for each vault. The APR does not vary according to how many stakers participate in the vault. We took this approach because we felt it was more consistent with the community spirit of Avocado, as opposed to some having a commercial advantage over others. By setting the maximum amount of deposits and the APR for those deposits, we are implicitly setting a maximum reward pool.
  • The staked deposit will continue to earn rewards after the minimum maturity is reached, right up until the ‘end farming’ date is reached.

We are excited to offer our staking program to our token holders, and a how-to guide will be published on our blog in the coming days to help you get started on gaining the benefits of being part of the Avocado community.

About Avocado DAO
Avocado DAO is a Web3 gaming guild that provides rewarding experiences for its 10k+ scholars and facilitates entry to GameFi to empower more users.

Find out more about Avocado DAO and join the community here:

Website | Twitter | Discord | Telegram | Facebook | YouTube |

Unlock life-changing opportunities with Avocado DAO Tokens (AVG):
AVG can be found on Ethereum and BNB, the contract address is the same for both chains.
Smart Contact address: 0xa41f142b6eb2b164f8164cae0716892ce02f311f

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