1. What is Staking?
Staking is the process of locking up crypto assets for a predetermined period of time to support the security and operations of a blockchain network. By staking your crypto, you earn additional cryptocurrency as a reward. On Phemex, users can stake PT to receive vePT, which can be used to participate in the exchange's subsequent voting governance. Moreover, Phemex will automatically buy back PT on a daily basis as a form of earnings for users who have staked.
2. How to stake PT and earn vePT?
On Phemex's web3-PT stake page, users can choose to stake their PT. The staking of PT is controlled by smart contracts and is fully implemented on the Optimism network. As such, PT staking is highly transparent, and the assets are extremely secure, with no possibility for anyone to misuse them.
Before choosing to stake PT, users are required to mint their Phemex Soul Pass. After minting, the Phemex Soul Pass will automatically bind to the user's web3 wallet. The vePT earned from staking will be sent to the wallet that was used for minting.
Users can choose to stake for any period ranging from 1 month to 2 years, with a minimum staking period of 1 month and a maximum of 2 years. Staking 1 PT for 2 years will yield 1 vePT.
Since all staking operations are executed on the blockchain, a one-time network gas fee will be charged for each new staking transaction, which will be deducted from the amount of PT staked.
3. How is the number of vePT calculated?
After successful staking, vePT will be sent to the user's bound web3 wallet. vePT is non-transferable and non-tradable; it serves as a certificate for users to earn rewards and participate in Phemex governance. vePT has a decaying characteristic, meaning it will linearly decay daily from the moment the staking is successful until the staking period expires, at which point the vePT will decay to zero.
Users can increase the amount of vePT by either adding more PT to their stake or by extending the expiration time of their stake. However, it is important to note that all of a user's stakes share the same expiration time. For example, if a user stakes 1000 PT for six months with an expiration date of June 30, 2023, and initially receives 250 vePT, they can increase their vePT amount in two ways:
a. Stake more PT, with all PT expiring on June 30, 2023;
b. Extend the staking period, with all PT unlocking on the new expiration date.
4. How to earn rewards after staking?
Please refer to this article for an updated APR mechanism and reward calculation method.
5. Is it possible to adjust the expiration time of the stake?
Once a user has successfully staked, they cannot reduce the duration time. After the stake expires, users can perform a withdrawal operation on the staking page. However, users can extend the expiration time and increase the amount of vePT, thereby earning more staking rewards.
6. What is the minimum amount for staking?
The minimum staking amount will be displayed when you click on 'Stake Now'. The default value shown is the minimum amount.
