KINE Locking & Staking
KINE Staking starts from 1st Apr ! KINE holders can now enjoy exclusive rewards by locking KINE. Process as follows ：
- Lock KINE to get xKINE, 20% of the Kine.Exchange fee income will be granted to xKINE holders exclusively.
- xKINE can then be staked along with other ERC20 assets and mint kUSD, enjoy the second layer rewards.
- Kine.Exchange will send KINE rewards to xKINE contract on weekly basis, driving up the exchange ratio of KINE/xKINE.
- xKINE holders can unlock KINE tokens by returning xKINE. Unlocking will incur a 2% transaction fee to encourage long-term stakers.
Simple example below to help better understand the rules of xKINE contract.
- On 1st Apr, John locks 100 KINE, he will get 100 xKINE as initially the KINE/xKINE ratio is set at 1.00.
- On 8th Apr, Kine exchange grants 10 KINE to KINE/xKINE contract, now KINE/xKINE ratio changes to 1.10.
- On 9th Apr, Mark locks 110 KINE, he will get 100 xKINE with the KINE/xKINE ratio at 1.1. The xKINE contract now locks 220 KINE and issues 200 xKINE.
- On 15th Apr, Kine Exchange grants 30 KINE to xKINE contract, the KINE/xKINE ratio changes to (220+30):200, or 1.25.
- On 15th Apr, John decides to unlock his KINE. As he holds 100 xKINE, he can withdraw 125 KINE at the ratio of 1.25. Meanwhile, 2% of the withdraw amount will be reserved in the xKINE contract. Effectively, John will receive 125*(1-2%) = 122.5 KINE on withdrawal.