Swan Staking Pool

Overview

The Swan Staking Pool allows users to stake Swan tokens and earn rewards by sharing in the revenue generated by Swan computing operators. Inspired by the Lido model, this staking pool provides liquidity through tokenized staking with fSwan tokens, enabling users to trade or hold their stake flexibly.

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Key Features

1. Tokenized Staking with fSwan

• Users stake Swan tokens and receive fSwan tokens as proof of their stake.

• fSwan tokens can be traded on decentralized exchanges (DEX) or centralized exchanges (CEX).

• Provides liquidity and flexibility for stakers while keeping their stake active in the pool.

2. Revenue Sharing

• Swan Staking Pool shares revenue from Swan computing operators.

• Rewards are distributed proportionally to fSwan holders based on their stake.

• No deductions from the staked amount; only a portion of the rewards is taken as fees.

3. Withdrawal Process

• Unstaking Swan tokens requires a 7-day withdrawal period to ensure system stability.

• During this period, users do not earn additional rewards on the withdrawn stake.

4. Platform Fees

• 10% fee is applied to staking rewards only.

• The fee is NOT deducted from the user’s initial staked amount, ensuring the principal remains intact.

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How It Works

Staking Process

1. Users deposit Swan tokens into the SwanFi Staking Pool.

2. The platform mints fSwan tokens, which are sent to the user’s wallet as proof of their stake.

3. Computing operators generate revenue by utilizing the staked resources.

4. Rewards are distributed daily to fSwan holders.

Unstaking Process

1. Users initiate a withdrawal request by burning their fSwan tokens.

2. A 7-day cooldown period begins, after which the staked Swan tokens and accrued rewards are returned to the user’s wallet.

3. During the cooldown, the stake is locked and does not earn rewards.

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Example Scenario

Parameters

• User stakes 1,000 Swan tokens.

• Total staked in the pool: 10,000,000 Swan tokens.

• Daily revenue generated by computing operators: 1,000 Swan tokens.

• Platform fee: 10% of rewards.

Reward Calculation

1. User’s Share of Rewards:

   $P_{\text{user, daily}} = \frac{1,000}{10,000,000} \times 1,000 = 0.1 \text{ Swan tokens}$

2. Platform Fee:

   $F_{\text{platform}} = 0.1 \times 10\% = 0.01 \text{ Swan tokens}$

3. User’s Net Rewards:

   $R_{\text{user, net}} = 0.1 - 0.01 = 0.09 \text{ Swan tokens}$

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Benefits

For Users:

• Earn passive income through shared revenue from computing operators.

• Liquidity and flexibility with tradable fSwan tokens.

• Principal remains intact; only rewards are subject to fees.

For Computing Operators:

• Gain access to additional capital through the staking pool.

• Share revenue with stakers to incentivize ecosystem participation.

• Sustainable growth through a robust staking mechanism.

For the Ecosystem:

• Increased liquidity and activity in the Swan token economy.

• Enhanced adoption of decentralized computing infrastructure.

• Alignment of incentives across stakeholders.

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Sustainability Mechanisms

1. Staking Fees:

   • The 10% fee on rewards ensures the platform’s sustainability without impacting the user’s principal stake.

2. Withdrawal Cooldown:

   • The 7-day withdrawal period protects the system from liquidity shocks and ensures stability.

3. Revenue Alignment:

   • Computing operators share revenue proportionally, fostering alignment with stakers and the broader ecosystem.

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Future Enhancements

1. Cross-Chain Staking:

   • Enable staking across multiple blockchain networks for diversified rewards.

2. Dynamic Fees:

   • Introduce adjustable fees based on platform performance and user activity.

3. Governance Integration:

   • Allow fSwan holders to participate in governance decisions, including platform upgrades and fee adjustments.

4. Real-Time Reward Tracking:

   • Implement dashboards for users to monitor their staking rewards and system performance.

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