Staking USDca
Last updated
Last updated
Earn rewards by staking USDca for sUSDca
Staking is controlled by the StakedUSDca smart contract. Stakers can interact with it directly or through the CAMP dApp UI.
When staking, a user transfers USDca into the contract and receives sUSDca (staked USDca ) in return, another ERC20 token.
Over time, additional USDca is transferred in as rewards.
When unstaking, staked USDca is burned in exchange for a proportionate USDca amount based on the total amount of sUSDca outstanding vis-a-vis total USDca in the smart contract.
There is no minimum staking period. If a user stakes and unstakes in consecutive blocks, they would receive their share of any increase in vested USDca value in the contract that has occurred in that ~12-second period. Because reward payments into the contract occur every 8 hours and linearly vest over 8 hours, there are never any sudden spikes in the vested USDca value, which prevents sandwich attacks where an informed staker stakes before and unstakes after payment at the expense of all other stakers.
Staking rewards accrual is related to the protocol's generated revenue from staking Ethereum & earning the funding and basis spread from the delta hedging derivatives position. While protocol generated revenue should remain fairly stable unless there is a slashing event, the funding and basis spread income from delta hedging derivatives will vary considerably (even day to day). In some periods, no rewards may be paid to stakers if the funding + basis spread yield is negative and it is greater than or equal to the income generated via the staked Ethereum. In this situation, when no rewards are transferred to the StakedUSDca smart contract, the CAMP reserve fund will support the underlying protocol backing.
Q: Do I have to stake USDca to receive rewards?
Yes. You have to stake your USDca with CAMP to earn rewards.
Q: Why is there a cooldown period during launch?
There is a 7-day cooldown from requesting to unstake sUSDca to receiving USDca in return. Users must first request their USDca be unstaked wherein their USDca will be placed in a USDcaSilo smart contract. Once the cooldown period has elapsed, users will be able to withdraw their USDca from the USDcaSilo smart contract.
Q: Am I able to sell the sUSDca prior to the cooldown?
Yes, you are able to do so if external markets exist. Note, however, that CAMP Labs is not planning to actively procure or facilitate creation of any such markets, and there can therefore be no guarantee that such market will exist.
Q: Is it possible that I owe the protocol funds?
No. Rewards can only be positive.
Q: What are staking rewards paid in?
The rewards are transferred to the staking contract in the form of USDca.
The StakedUSDca smart contract implements the for composability. This popular standard is widely used for onchain reward-accruing; thus, it is expected that other user interfaces beyond the CAMP dApp may likely support USDca staking in the future. Various deposit and redeem functions are exposed, enabling staking with or without a slippage threshold, and with or without an ERC2612 Permit signature authorizing the transfer of USDca.
