Allbridge Staking Explained
- Allbridge Staking is a staking pool for ABR token.
- Allbridge Staking is supposed to be on every blockchain that Allbridge supports.
- For staking users receive xABR tokens, which represent the pool share.
- Users earn rewards proportional to the bridge fees according to their pool share.
- With staking users can reduce the bridge fee on the blockchain they send the assets from.
- Even though the staking is available on several blockchains, the pool is different for every blockchain.
- It means that the user's pool share is calculated for the pool on the blockchain, where s/he stakes ABR token.
- Rewards come from sending fees on the blockchain plus extra incentivization for early stakers.
- Rewards can be retrieved by unstaking the xABR tokens.
- Users can decrease the Bridge Fee if they have xABR on the blockchain wallet, from which they transfer the assets. For example, if the user wants to send USDC from Polygon to Solana, to reduce the bridge fee the user needs to have xABR tokens on the MetaMask address on Polygon from which s/he sends the assets.
- The bridge fee depends on the user's pool share (amount of xABR). In the beginning, when the staking pool has less liquidity, the user needs to stake less ABR in order to reduce the bridge fee (less xABR is needed). As TVL increases, the user needs to stake more ABR in order to keep the bridge fee on the same level. For example, if TVL is $100,000 and the user stakes $100, the bridge fee will be reduced to 0.04%. However, staking $100 with the TVL of $1,000,000 will reduce it to 0.19%.
- Since the fee is paid with the Send transaction on the source chain, there is an Allbridge Staking contract on each chain, except Ethereum and XRPL, since XRPL does not have smart contracts.
- The bridge Fee is calculated right before the Send transaction is triggered.
- The bridge fee does not include a gas fee. You will pay for gas yourself.
- The Minimum Fee will be equivalent to $1, no matter how big the stake is.
- The Minimum Fee will be updated weekly based on the average token exchange rate last week.
- 1.Decide on which blockchain you need to reduce the bridge fee.
- 2.Buy ABR token.
- 3.Stake ABR token to Allbridge Staking.
- 4.Receive xABR which represents your pool share.
You put ABR to the pool, you get xABR in return. xABR is a pool share token, it is initially 1:1 to ABR, but when rewards are added to the pool the number of ABR in the pool increases and xABR costs more ABR than before.
For example, if you stake 100 ABR and receive 100 xABR, then 10 ABR are added to the pool, and the pool is now 110 ABR (if you are the only staker). Then you unstake, 100 xABR are burned and you receive back 110 ABR.
Anytime. Your xABR is burned and you receive your share of the ABR pool back.
You cannot, to get your rewards you have to unstake ABR completely or partially.
You participate in the pool and all rewards are shared among the users. Also unlike the farming model, the xABR token is transferable. All this prevents you from seeing your personalised rewards by using just the blockchain contract. However, we’re planning to improve UX by showing estimates of your rewards in the following weeks.
There is a staking pool on each of the blockchains supported by the bridge.
They are added daily.
There are two types of rewards: proportion of bridge fees and incentivisation. Incentivisation is calculated daily and is 0.03% of the pool in ABR (which is 11.57% APR using the compound interest formula).
We have 20% of the supply reserved for incentivisation, it is more than enough to incentivise ABR staking pools on all the blockchains. And since this supply is limited, incentivisation of the pool will be time limited as well (not more than 2 years).
Once per week, we determine the fees accumulated on the bridge and add the equivalent of 80% of this amount to the staking pools. Then this ABR amount is added daily to the pool the following week. We repeat this process every week.
Not for now, currently, the bridge operates on the lowest fees possible, but we will be increasing them soon for non-stakers. Currently, incentivisation rewards are higher than fee-based rewards, but the latter will be growing fast in the future.
First of all, xABR is a transferable representation of your share in the pool. Also with the bridge contract update, your xABR balance will be used to determine the fee you pay (non-stakers will pay the highest fee).
We have set up a DAO where your xABR tokens can be used for voting. You can read about it here:
No, while xABR is transferable between wallets on a single blockchain you cannot bridge it to other blockchains.