Why Staking $NEAR with Meta Pool?
Last updated
Last updated
When you stake $NEAR with Meta Pool, you receive stNEAR, a token that represents your staked position and that you can take and use in the emerging NEAR DeFi market.
stNEAR allows you to access liquidity while you keep earning staking rewards. Liberate your stake now!!
The traditional NEAR Protocol unstaking process takes approx. 48-72 hours (4 epochs).
When you stake with Meta Pool you have the option to access your funds immediately (Liquid Unstaking) by paying a small fee (averages 0.3%).
The fee represents how many users value skipping the 36-60 hours waiting period to receive their funds.
The fee varies with the amount of NEAR in the Liquidity Pool, but the curve is capped at the extremes. Initially, discount fees are in the range 3%-0.3%, but the curve parameters can be adjusted by DAO governance.
For the purpose of enabling liquid unstaking for stNEAR holders, Meta Pool has created a stNEAR / NEAR liquidity pool.
Users providing liquidity to the stNEAR<>NEAR liquidity pool can earn fees on each sell.
The stNEAR<>NEAR Liquidity Pool is a one-sided LP. Liquidity providers add only $NEAR to the liquidity pool.
The pool allows other users to perform "Liquid Unstakes". During a "Liquid Unstake" users send stNEAR and receive NEAR from the liquidity pool, minus a fee.
Because this liquidity pool is single-sided for liquidity providers there absolutely no risk of impermanent loss (IL).
When staking $NEAR with Meta Pool you avoid putting all eggs in one basket. The Meta Pool smart contract automatically distributes delegated funds into several validators (80+), thus significantly reducing the risk of getting no-rewards due to any one validator outages.
Meta Pool smart contract not only distributes funds across many validators (80+), but it also automatically rebalances the allocation to each validator based on several parameters such as the % of funds staked with each validator (preventing any one validator from being too concentrated), and overall performance (deterring and removing underperforming validators which can undermine the network).
Meta Pool contract doesn't need the Meta Pool team, anyone can run the heartbeat and make the contract work if needed. So in case that Meta Pool disappears, the users could access the contract by themselves using the contract methods and guided by code.
