⛏️Staking

How staking works on Adrena

For a more technical view, see Staking Implementation Details.

For tokenomics, see Tokenomics.

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Economic value in Adrena is mostly captured through staking via the below options:

Staking ALP (Adrena LP token)

ALP is obtained in exchange for depositing collateral to the Adrena platform liquidity pool or bought on the open market. As a token representing a share of the Adrena platform liquidity pool, ALP accrues whatever profits or losses the pool is subject to over time (from fees and traders PnL). As such, holding liquid ALP is equivalent to a liquid staked reward accrual token.

Users may also Lock Stake their ALP tokens to receive economic multipliers that provide, in exchange for higher lock durations:

• Larger share of the LP pool (indirect USDC distribution)

• Larger share of ALP USDC rewards (direct USDC distribution)

• Larger share of ADX rewards

Staking ADX (Adrena Governance Token)

ADX is obtained through Lock Staking ALP, Lock Staking ADX, the Genesis Liquidity program, Vesting (team and investors), the open market -- and finally -- an as-yet-unannounced airdrop.

ADX can be Liquid Staked to earn USDC from platform revenue distribution. Liquid Staked ADX also has 1:1 vote power in governance.

Users may also Lock Stake their ADX tokens to receive economic multipliers that provide, in exchange for higher lock durations:

• Larger share of ADX USDC rewards

• Larger share of ADX rewards (liquid staked ADX does not receive any ADX rewards)

• Larger share of voting power in governance

See Tokenomics for more detail.

Early Unstake Option

To provide an escape valve for Locked Stakers who strongly desire liquidity, Adrena has a built in mechanism for Locked Stakers to prematurely unlock, for a price. This penalty is calculated based on the staked duration divided by lock length, and varies between 5-40% of the position. 100% of this penalty is deposited back into the ALP pool, transfering value from short- to long-time preference liquidity providers.