Ecto Staking
Overview
In decentralized finance, staking is one of the most reliable ways to generate sustainable returns. It is the act of locking tokens to earn rewards, forming the backbone of many DeFi protocols. At Ectoplasm, staking takes the form of Ecto Staking, a mechanism that allows users to deposit their $ECTOPLSM through our dedicated dApp and earn consistent yields directly supported by the treasury.
Rewards from Ecto Staking are powered by Phantom Bond sales and dynamically adjusted by our algorithmic monetary policy. This ensures that yields remain both attractive and sustainable, balancing treasury growth with long-term value creation.
Staking Process
When you engage with Ecto Staking, the process is simple but powerful:
Deposit $ECTOPLSM or $tECTOPLSM into the staking contract.
Receive an equivalent amount of $sECTOPLSM, representing your staked position.
Begin earning rewards in $ECTOPLSM, claimable at the close of every epoch (approximately every 6 hours).
Depositing tokens incurs no fees, making participation accessible to all.
Getting started is straightforward:
Navigate to the Ectoplasm dApp and select Ecto Staking.
Decide whether you want to Redeem your $sECTOPLSM at the current market price or at a fixed redemption rate.
Transfer your tokens into the contract and receive $sECTOPLSM on a 1:1 basis.
Unstaking
When it comes time to withdraw, the Unstaking process provides both flexibility and sustainability:
Visit “Your Tickets” in the dApp, select your position, and specify the amount to withdraw.
Standard unstaking applies a 5% withdrawal tax as an exit fee, which is recycled back into the protocol to strengthen the treasury.
Withdrawing $tECTOPLSM is exempt from this fee, offering an alternative for more flexible liquidity.
Redemption
Redemption is the defining mechanic of Ecto Staking. It allows participants to unlock their $sECTOPLSM at either:
The real-time market price, or
A fixed redemption rate.
Each epoch (~6 hours), around 3.57% of your original stake becomes available for redemption. This gradual unlocking mechanism prevents sudden shocks to the system while rewarding committed participants.
Key characteristics of Redemption:
Redemptions bypass all sell taxes.
100% of redeemed tokens are permanently burned, creating constant deflation, reducing circulating supply, and adding sustained buy pressure.
The Importance of Redemption
Redemption transforms what would normally be a simple unstake into a deflationary value engine. Every redeemed token is permanently destroyed, reinforcing the treasury and increasing scarcity.
This ensures that participants are not only securing their individual profits but also contributing directly to the long-term health and sustainability of the protocol. Even in volatile markets, Redemption keeps value flowing back into Ectoplasm, turning every exit into an act of protocol strengthening.
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