💸rcUSD+ Token and Staking
Introduction to rcUSD+
Subject to certain conditions, holders of rcUSD can stake rcUSD with RazeStaker Company Limited (“StakingCo”) and receive rcUSD+ as a receipt evidencing their staked rcUSD and potentially earn staking rewards (yield). StakingCo will publish the expected yield rate for staking rcUSD from time to time (which is only an estimate and not a guarantee of the actual staking rewards that may be earned). The actual staking rewards (yield) to be received by holders of rcUSD+ will not exceed the expected yield rate published by StakingCo.
Staking Mechanics
Holders of rcUSD can stake their rcUSD by locking the rcUSD in a designated staking smart contract managed by StakingCo. A corresponding amount of rcUSD+ will then be issued to the holder of the staked rcUSD as a receipt evidencing their locked-up (staked) rcUSD. The holder will still own the rcUSD while it is staked (and shown as rcUSD+ in their account), i.e. rcUSD is not exchanged for rcUSD+.
Staking Fee
A staking fee charged by StakingCo on the rcUSD being staked is also part of the protocol's design.
This staking fee is waived by StakingCo at the time of the product's launch.
StakingCo reserves the right to implement the staking fee in the future.
Yield Accrual and Distribution
Yield is distributed to rcUSD+ holders via a rebasing mechanism. Each rcUSD+ holder’s outstanding balance of rcUSD+ will automatically increase daily to reflect the yield generated on that day. rcUSD+ holders will see their rcUSD+ balance grow directly in their wallets, reflecting their earned yield.
Source of Staking Rewards (Yield)
The staking rewards (yield) that may potentially be earned by rcUSD+ holders are mainly from two sources:
promotion fee paid by IssuerCo to StakingCo in consideration of StakingCo’s provision of the staking service in respect of rcUSD; and
public chain incentives received by StakingCo.
Yield Ceiling
StakingCo does not expect the yield to exceed 20% per annum (simple interest, calculated on the basis of the actual number of days elapsed and a year of 365/366 days) in any event. Yield could be as low as zero and there is no guarantee that StakingCo will pay any minimum yield.
Unstaking Process
rcUSD+ holders can unstake their rcUSD at any time. The yield from staking the rcUSD will be reflected in the increased rcUSD+ balance in their account. When a rcUSD+ holder requests to unstake, the request will be handled by a smart contract and their staked rcUSD will be unlocked from the designated smart contract managed by StakingCo, and rcUSD corresponding to any yield earned will be remitted to the holder’s wallet.
Unstaking Fee
An unstaking fee charged by StakingCo is part of the protocol design and applied to the principal amount of rcUSD to be unstaked.
This fee is designed to encourage longer-term staking and generate revenue for the protocol.
The unstaking fee rate is 1%.
This unstaking fee is waived by StakingCo at the time of the product's launch.
StakingCo reserves the right to adjust, reduce or increase the unstaking fee rate in the future.
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