ConcaveFi Gitbook

Liquid Staking Mechanics

Previous conceptions of bonding-staking models suffer from one key problem: stakers are diluted in favor of bonders. This arises because nothing is free: in order to reward one user group (bonders), you must take from another (stakers). Our model provides a solution to this by introducing liquid staking terms and a cap on the volume of CNV that can enter non-dilutive pools.
With locked staking mechanisms, we categorize stakers by term length and use categories to differentiate rewards. Instead of penalizing all stakers, the protocol penalizes short-term stakers with dilution, rewards long-term stakers with non-dilution, and attracts bond revenue in the process.
Liquid staking mechanics have been designed to return the highest rewards to long-term stakers utilizing concepts of anti-dilution. The protocol will allow any Concave holder to enter locked staking terms that range from 45 days – 360 days. Liquid staking positions will receive boosted rewards based on term length. Investors in the longest-term liquid staking positions will receive the highest returns. Rewards will be issued in both the native CNV token and non-native tokens such as DAI or Frax. The reward structure is documented below.