We are very excited to be welcoming thousands of new $SIPHER token holders. As planned, we are now preparing for the next big thing: the staking of $SIPHER tokens.
We are very close to opening our staking portal, which will allow anyone to deposit their desired amount of $SIPHER tokens and start earning rewards. You will find everything you need to know about staking your $SIPHER tokens in this article.
So bring your favorite Salt Bae and let's get staking!
Key information
- Staking is available at our website subdomain : https://sipher.xyz/stake/overview
- When providing liquidity, make sure you use Kyberswap or Uniswap V2
- Staking pools will open on Monday, 13th of December @ 12:00 PM UTC
- Rewards will be released starting on Tuesday, 14th of December @ 12:00 PM UTC
This means you have 24 hours to stake your tokens, and as such have more time, rather than rushing to stake right after you claim your tokens. We want to give everyone the chance to start collecting rewards from the very beginning of the staking pools' creation.
Note: The Sipher team might change the timing depending on unforeseen technical issues.
Staking Options & Calculating Rewards
We are focused on rewarding long-term believers by adding a time-weighted element for calculating rewards. The following paragraph, explains the exact structure and how we calculate rewards:
Inspired by the previous token launches of our friends at Illuvium and Merit Circle, we decided to follow a similar structure of calculation for the liquidity mining rewards. This model perfectly rewards long-term stakers due to the time-weighted element for calculating rewards. After the token sale, all token holders (except tokens that have a cliff (locked) or vesting period - see
- $SIPHER → Single-sided staking pool. This pool will receive 20% of the liquidity mining rewards
- $SIPHER/$ETH LP → Liquidity position of 50% SIPHER and 50% ETH. This pool will receive 80% of the liquidity mining rewards.
When staking your tokens, you can choose the lockup (stake) period, ranging from 0 (flexible) to 12 months (locked). The longer your $SIPHER tokens are locked up, the higher the respective share of the pool and, therefore, the higher your rewards.
Below you will find a couple of examples of how this mechanism will work. We calculated the differences between flexible (unlocked) or locked for six months, nine months, and for a year:
- Staker 1: Doesn’t want to lock the underlying tokens and therefore got a weight of 1
- Staker 2: Locks the $SIPHER tokens for 6 months and therefore got a weight of 1.5
- Staker 3: Locks the $SIPHER tokens for 9 months and therefore got a weight of 1.75
- Staker 4: Locks the $SIPHER tokens for 12 months and therefore got a weight of 2
Initially, 5% of the total supply will be allocated as liquidity rewards. This equates to 50,000,000 $SIPHER tokens being equally distributed and rewarded based on the calculations shared above over the course of the year. Please note that it’s possible for the Sipher team to alter, add and remove these rewards in relation to size and time.
How to stake your $SIPHER tokens
Step 1 — Enter the staking portal
The first thing you need to do is enter the staking portal. This can be done by going to our staking subdomain https://sipher.xyz/stake/overview where you will be greeted with the page that shows some basic information and statistics about the staking portal.
Please ensure that you only follow the official link in this article : https://sipher.xyz/stake/overview
Step 2 — Connect your wallet
The next step is to connect your wallet. Simply click the ‘Connect wallet’ button in the top right-hand corner and you will see the screen in the image below pop up.
Here, you can choose from a number of options: MetaMask or other Web3 wallets through WalletConnect.
Step 3 — Pick your preferred staking pool
After you have connected your wallet, you’re ready to start staking. The next step is to pick the staking pool of your choice. In the main overview, click the large ‘Stake’ button, which will open up the screen below. This will show you the available staking pools.
Since 80% of the entire staking rewards will go to those providing liquidity, it’s important to understand providing liquidity on Uniswap V2 — We will release a small tutorial later on how to do this for the uninitiated.
Please understand that providing liquidity on Uniswap V2 is required to stake. Those providing liquidity on Uniswap V3 will not receive rewards.
When providing liquidity, make sure you use Kyberswap or Uniswap V2
Prior to staking your tokens, you might want to find out more about each specific pool. To do so, press the ‘Details’ button in white to expand the row and see the following detailed overview:
From this screen, press ‘Stake’ to head to the next step.
Step 4 — APPROVE
After you have chosen your preferred settings, press ‘Approve for Staking’ as shown below.
A MetaMask prompt (or WalletConnect) will then appear and you’ll have to confirm the transaction. Please review the transaction and the gas fees before confirming your transaction.
After you have confirmed your transaction, please wait patiently as the Ethereum blockchain has to confirm the transaction at the other end.
Step 5 — STAKE
After you have approved the contract to spend your SIPHER tokens, you have to make the second transaction to stake your tokens. Instead of ‘Approve for Staking’, you will now see ‘Stake’.
Once you press stake, A MetaMask prompt (or WalletConnect) will appear and you’ll have to confirm the transaction. Please review the transaction and the gas fees before confirming your transaction.
Once the transaction is confirmed, you will see a pop-up notification saying ‘Transaction Successful!’
Step 6 — Congratulations!
That’s all there is to it. Once the transaction is confirmed on the Ethereum blockchain, your tokens are then officially staked and you start collecting rewards!
Note: As stated at the beginning of this article, staking rewards will begin on Tuesday, 14th of December @ 12:00 PM UTC
A transaction will be executed on a daily basis to update and distribute rewards, once ready, the daily reward of each staked accounts will be calculated and show up on your dashboards.
How to claim your $SIPHER tokens
Claiming your reward tokens is similar like staking your tokens. Click the large 'Claim' button within your dashboard.
You then will be directed Reward Dashboard. From here you can click “Claim” on the Staking Pool that you have chosen.
A MetaMask prompt (or WalletConnect) will then appear and you’ll have to confirm the transaction. Please review the transaction and the gas fees before confirming your transaction.
Once the transaction is confirmed, you will see a pop-up notification saying 'Transaction Successful!'.
Please be aware that rewards are subject to a 12-month lock.
To reduce excessive calculations, and therefore the gas cost, the number of accumulated rewards per pool share is not calculated with every deposit, withdrawal, and claim. Instead, rewards are being calculated periodically.
This improves gas cost by a substantial amount for end-users and therefore reduces the total gas consumption.
This means that rewards will be calculated roughly every 24 hours depending on gas price conditions.
Frequently Asked Questions
The APR (%) will change over time. As there are more or fewer people participating in the staking pool. In essence, the fewer people joining the pool to mine the rewards, the more rewards there will be to give out, and vice versa.
This is the same scenario for both the single-sided staking pool and the $SIPHER/ETH LP Staking pool
LPs have to provide the extra ETH capital as well as take on the risk of impermanent loss by providing the pair $SIPHER/ETH for trading. This impermanent loss can happen due to the appreciation and depreciation of each side of the pair. Please see impermanent loss explained below.
However, DEX requires the healthy provision of this pair in order to faciliate good trading and low slippage for our buyers and sellers. Therefore, we and many other projects, decide to reward the LPs for taking on this risk.
On the other hand, single-side staking does not take on this risk and also does not require the additional ETH capital.
As the reward pool gets smaller, LP staking rewards will decrease.
You can certainly modify your gas (GWEI) for the staking transaction. However, there are some caveats to this:
- We recommend that you only change the gas (GWEI) and NOT the gas limit. Changing the gas limit could cause your transaction to fail and loss of gas fees.
- Given that gas prices are changing constantly, you may run into a situation where the gas (GWEI) you have selected is too low. If the transaction does not go through for hours or days, you most likely will need to increase the gas.
If you are inexperienced in the matter of editing gas fees, we would suggest you leave it as it is and make your transactions at a time where the gas fees are more suitable to your liking.
Unfortunately not. Since this is handled via smart-contracts, once you enter into a staking contract for X amount of duration, your tokens will be locked for the exact X amount of time. Nobody can unlock the tokens earlier for you.
Unfortunately, we do not have a mobile-friendly version of the Staking Portal at this moment. Please use Desktop for an optimal user experience.
Yes you can use your Trezor Hardware Wallet by logging with the "For Trezor Wallet" menu.
With Liquidity providing (paired-staking such as $SIPHER/ETH), the price of the tokens is often subjected to changes when they are deposited in a pool. Due to these changes, there can be something known as Impermanent Loss that happens to the value of your tokens in the pool. "Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit." Such risks are common when providing liquidity to any liquidity pool. To know more about Impermanent losses, you can read this article: Impermanent Loss Explained | Binance Academy
