Introducing the Next-Gen of Staking on OrcaDAO — xORCA

Published on: 13.11.2021

Currently, to share 40% of the income generated by the protocol with ORCA holders, They have a simple single staking option that rewards in AVAX. While this was a great placeholder as a starting mechanism, it did not allow a lot of flexibility in reward rates in times of higher revenue and lower revenue, and has to be fine tuned regularly — such as rewards per second — if that was to be maintained.

This is not ideal for a DAO-operated protocol, which should have minimum manual interference. Other Avalanche protocols such as Trader Joe or Penguin Finance have implemented xJOE/iPEFI with high success and positive feedback.

Therefore after a resounding vote by their engaged DAO participants, the choice has been made to convert our current Staking Rewards — into the industry standard of introducing flexible rewards via use of an alternative staking token, xORCA.

Further, they have added an xORCA farm with a modest allocation to further compound ORCA rewards for holders

xORCA Process

The new single staking option process will be:

Stake ORCA
Receive xORCA
xORCA is worth a ratio of ORCA, which goes up over time, making xORCA more valuable.
Withdraw xORCA after X amount of time, receive protocol revenue in the form of ORCA.

There will be NO fees on single staking, of any type, just like what is currently implemented.

If in the future the DAO decides to add some other structure, such as locking up periods, or fees, then that will be proposed at a later date by the community and voted on by token holders.

Benefits

Beyond flexibility, there are a few other key benefits to this change:

They can use protocol revenue to buy back ORCA and distribute it to holders by increasing the worth of xORCA.
They can add a xORCA pool as rewards for farming, to receive even more ORCA.
xORCA is an ERC20 token, so it can be transferred around and used for any purposes that any ERC20 token can.

In Summary

This updated method of staking rewards is proven to be a sustainable, clear, and overall excellent mechanism to stake ORCA tokens and reward long term holders and voters of the OrcaDAO.

About OrcaDAO

OrcaDAO is an Avalanche native protocol designed to offer and optimize a Stablecoin (AVAI), and Ownership/Governance token (ORCA) pair that allow for lending using crypto collateral at 0% interest. The protocol centers around the production, maintenance, and sustained equilibrium of AVAI around a stable value, used by the DeFi community for a multitude of use cases — such as loaning/borrowing and yield farming — with a high level of confidence.

OrcaDAO has been thoughtfully designed and optimized to be flexible for Avalanche users’ ever-changing needs, including: no lower-bounds on multiple collateral options, partial liquidations allowing for more forgivable loan processes, a firm peg designed to float within a cent of $1.00USD, and a triple bottom line focused revenue sharing initiative in support of marine/ocean conservation and restoration efforts via the OrcaDAO SeaFund

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