Staking FAQs

1. What is staking in Pear Protocol? What do users stake, and what do they receive?

Staking in Pear Protocol allows users to lock up their $PEAR tokens and receive $sPEAR (Staked PEAR) in a 1:1 ratio. By holding $sPEAR, users become eligible to receive a portion of the revenue generated in the StakingPool. The longer you hold $sPEAR, the more you benefit from both the rewards and loyalty bonuses within the ecosystem.

2. How are staking rewards calculated?

The rewards are calculated based on your share of the $sPEAR supply. For instance, if you hold 1% of the total $sPEAR supply, you are entitled to claim 1% of the StakingPool’s revenue. If the total pool revenue is $100, you would be able to claim $1 as your reward.

3. How does the exit process work? Is it FIFO (First-In, First-Out)?

Yes, the exit process follows a queue-based system, effectively making it FIFO (First-In, First-Out). When you exit (unstake) your $sPEAR, the protocol applies exit fees based on the duration of each individual stake, starting with the oldest staked amounts first.

For example, if you staked tokens across multiple days, the protocol will redeem the earliest staked amounts first, applying the corresponding exit fee (20%, 5%, or 1%) depending on how long each portion has been staked. This ensures that exit penalties are fairly applied based on the time each stake has been in the pool.

Day 1: Staked 10,000 PEAR Day 9: Staked 5,000 PEAR Day 11: Staked 2,000 PEAR

On Day 17, the user decides to exit 11,000 tokens. Here's how it would work:

First, it processes the 10,000 PEAR from Day 1 (16 days ago):

This is beyond 7 days but less than 30 days, so it incurs a 5% fee. 10,000 * 0.95 = 9,500 PEAR returned

Then, it processes 1,000 PEAR from the Day 9 stake (8 days ago):

This is beyond 7 days but less than 30 days, so it also incurs a 5% fee. 1,000 * 0.95 = 950 PEAR returned

Total PEAR returned: 9,500 + 950 = 10,450 PEAR Total fee paid: 500 + 50 = 550 PEAR The remaining 4,000 PEAR from Day 9 and 2,000 PEAR from Day 11 would remain staked. This FIFO system ensures that users benefit from reduced fees on their older stakes while maintaining newer stakes if they perform a partial exit.

4. Can users claim rewards at any time?

Yes, users can claim their portion of the StakingPool revenue at any time without any penalties. However, in certain cases, exiting (unstaking) your $sPEAR back to $PEAR could be subject to an exit fee, which decreases over time depending on how long you have staked.

5. How does the exit penalty work?

When users redeem their $sPEAR back into $PEAR, a slashing exit fee is applied based on the duration of their staking period:

Exiting after 1 day results in a 20% exit fee. Exiting after 7 days results in a 5% exit fee. Exiting after 30 days results in a 1% exit fee. For example, if a user stakes 10,000,000 $PEAR and exits after 1 day, they would incur a 20% penalty, meaning they would redeem 8,000,000 $PEAR instead of the full 10,000,000. The remaining 2,000,000 $sPEAR is distributed proportionally to other $sPEAR holders, rewarding long-term stakers.

6. How are exit penalties distributed?

The $sPEAR tokens paid as exit fees are automatically distributed among the remaining $sPEAR holders. This mechanism rewards users who stay staked for longer, as they receive a greater share of the pool over time.

7. Can I add to my stake at any time?

Yes, you can add to your stake at any time by converting more $PEAR to $sPEAR. Each new stake is treated as a separate entry in the staking queue, with its own timestamp for calculating exit fees.

8. How often are staking rewards distributed?

Staking rewards are continuously accrued in real-time from every trade that occurs on the Pear Protocol platform. For each trade, 80% of the generated fees are allocated to the staking rewards pool, while the remaining 20% goes to the Pear treasury. This means that as a staker, your potential rewards grow with each transaction on the platform, providing a dynamic and ongoing benefit for participating in the staking program.

9. Is there a minimum staking amount?

No, there is no minimum staking amount in the Pear Protocol. You have the flexibility to stake any amount of $PEAR tokens that you're comfortable with, whether it's a small amount to test the waters or a larger sum for potentially greater rewards. This allows all users, regardless of their holdings, to participate in the staking program and earn rewards proportional to their stake.

10. Can I partially unstake my $sPEAR?

Yes, you can unstake any amount of $sPEAR. The FIFO system will apply to partial unstaking, processing your oldest stakes first and applying the appropriate exit fees based on the staking duration of each portion.

11. What happens to my staking rewards if I unstake?

When you unstake, you'll receive any accrued rewards up to that point. Future rewards will be proportional to your remaining staked amount, if any.

12. Are there any risks associated with staking?

While staking is designed to be beneficial, it's important to understand that:

• There may be opportunity costs of locking up your tokens.

• The value of rewards can fluctuate based on the protocol's performance.

• Smart contract risks, while minimized through audits and security measures, cannot be entirely eliminated. Always do your own research and invest responsibly.

note: Staking is prohibited in certain Restricted Territories. To ensure compliance we have geo-blocked users from Restricted Territories from the Dashboard and other parts of the app. There is also an opt-in confirmation required at the point of staking. Furthermore, the Terms of Use clearly state that Staking is not prohibited if you are from a Restricted Territory. Users should seek their own independent advice if they are unsure of their legal and tax obligations.