Liquid Staking
Liquid staking empowers users to to secure the network and earn yield while capital stays unlocked. With Verio's liquid staking protocol, users stake Story's native gas token $IP in exchange for the yield bearing LST (liquid staking token) $verioIP. Users can then use the LST in DeFi & IPFi applications, for example, building leverage in money markets and namely participating in Proof-of-IP-Curation, while continuously to accrue staking rewards towards the LST.
We expect both whales and small retail users to predominantly user our Verio protocol for staking.
FAQs
$IP. Story's network native token is $IP.
$verioIP ($vIP). By staking $IP through Verio, a user receives $vIP (symbol for $verioIP). $vIP starts off as 1:1 exchange rate against $IP, but as $vIP accrues staking rewards over time, we have $vIP > $IP. We will use $verioIP and $vIP interchangeably through out this documentation.
Rewards. Staking rewards range from 4-6% apy. Verio helps auto-compound staking rewards. Verio also utilizes Maturity Mismatch to generate higher yield than just staking directly with validators.
Minimum Stake. The minimum stake amount to Story Validators is 1024 $IP. However, staking through Verio can be as little as 0.1 $IP and users will instantly receive the corresponding amount of $vIP.
Withdrawal Period. Unstaking from Verio on testnet currently requires only 1-2 hours. However, this time is expected to significantly increase when mainnet goes live, particularly the unbonding period for unstaking will be 14 days or more. The delay is in place to maintain network stability and safeguard against potential malicious attacks. Therefore, Verio will also have similar unbonding periods, but Verio will maintain an $IP reserve for faster withdrawal time on smaller unstakes.
Fee. Verio takes a 15% fee on the rewards accrued through staking for ensuring a secure and stable infrastructure for liquid staking, building insurance pool against slashing, and redirecting rewards to IP Assets as incentives.
Slashing. If a validator goes offline or attempts to double sign a block causing a network fork, the validator's stake will be slashed. Users who have staked with that validator may lose a portion of their funds. Verio's insurance fund is in place to mitigate such losses.
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