Staking & LP Staking on the Backstage Platform

  • Staking BKS ensures platform liquidity and security
  • There are two types of staking: Single-staking BKS and LP staking
  • Staking rewards should be solid yet sustainable — don’t expect sky-high APYs but do expect to get your fair share of rewards.
  • Projects can utilize staking on the Launchpad to raise funds

First, What Is staking?

Staking BKS to Provide Liquidity

The Backstage Staking System

  • Staking: Users single-stake BKS and get returns in BKS — simple and straightforward. You earn a small portion of rewards for helping to confirm transactions.
  • LP Staking: Users stake a token pair (50% BKS; 50% another token). They get rewards in the form of BKS. This is a bit more complicated, and does bring in the potential of impermanent loss (explanation here).

Benefits of Staking for Backstage

  • Ensures BKS liquidity
  • Helps support token strength
  • Reduces the chance of a post-sale dump
  • Increases the liquidity pool and helps the system stay healthy
  • Enhances security as more people verify transactions (and therefore make the platform more decentralized)

Benefits of Staking for Events Projects

  • Projects pitch their event to a community (music festival, theater play, etc)
  • Investors stake their tokens and projects can use that money to fund the event.
  • The amount an investor stakes gives them a proportionate percent of the event’s profits.
  • Once the event happens and revenue arrives, payouts can be made based on how much each community investor has staked.
  • Secured by smart contracts, raising funds through a staking offering is a powerful way to minimize community risk and ensure each investor gets fair value.

About Backstage

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