Staking

BID Staking Rewards

Holders of staked BID are eligible for three types of rewards:

  • Escrowed BID (eBID)

  • Multiplier Points

  • UBID Rewards, subject to activation by a BondBid DAO vote

For more information on eBID and Multiplier Points, refer to the respective sections on eBID and Multiplier Points.

BondBid Fee Revenue Streams

There are three primary sources of protocol fees for BondBid:

  • Interest Rate Differential: BondBid levies a minimal spread between the borrowing and lending rates for USDC.

  • Transaction Fees in UBID: Liquidity is incentivized for UBID, with BondBid collecting trading fees ranging from 5 to 30 basis points depending on the liquidity provider tier.

  • Yield from UBID Holdings: As a stablecoin, UBID inherently carries no interest, with the yield instead being accrued by BondBid as protocol revenue.

All fees generated are converted into UBID and managed under the governance of the BondBid DAO.

Introducing eBID

Escrowed BID (eBID) serves two purposes:

  • Staking for rewards analogous to BID tokens

  • Vesting into actual BID tokens over a 12-month period

Every staked eBID will accumulate rewards in the form of more eBID and UBID, at the same rate as a standard BID token. eBID is designed to be non-transferable, except in the case of complete account transfers.

eBID tokens can be transformed into BID over a vesting period of 12 months. The initiation of vesting will reserve an average amount of BID or UBID liquidity provider tokens or iUBID tokens that were utilized to garner the eBID.

For example, staking 1000 BID and earning 100 eBID means to vest 100 eBID, 1000 BID will be reserved. This ratio is illustrative and will vary based on each account's average stakes and rewards.

eBID that is in the process of vesting does not earn additional rewards. However, the staked BID that is reserved for vesting continues to accumulate rewards. Once vesting begins, eBID is converted to BID incrementally over 12 months and can be claimed at any time.

If a user wishes to vest their eBID at a later date, they must maintain or re-acquire the necessary BID or re-stake UBID LP tokens or iUBID tokens. BID, eBID, and Multiplier Points are interchangeable for the purposes of meeting this reserve requirement.

Adding to the vesting queue is permissible even if current vesting is underway. Tokens earmarked for vesting are not available for un-staking or sale.

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