To coincide with the public launch of the Rook Protocol and its support for native staking of the ROOK token, we are excited to announce that we are launching a Staking Boost Program for early adopters.
At its baseline, the Rook Protocol allows users who stake their ROOK to earn additional ROOK in the form of non-inflationary protocol fees. However, the staking contract also allows yields from the Rook DAO Treasury to be converted into ROOK and distributed to stakers via the same channels.
The Staking Boost Program will utilize this second mechanism to distribute a portion of the ROOK that was repurchased using bribe revenue from the Rook DAO Treasury’s locked CVX position to users who have staked ROOK in the Rook Protocol staking contract.
The program is expected to run for 8 weeks and will disburse approximately 7,273 units of ROOK.
In December 2021, the Rook DAO ratified governance proposal KIP-5 to acquire and lock a CVX position using the Rook DAO Treasury and begin earning recurring inflows through bribe revenues. Based on community consensus, a portion of the revenue earned from this position was utilized to repurchase ROOK from the open market. Since the inception of this investment, the Rook DAO Treasury has repurchased 14,546 ROOK. 50% (7,273 ROOK) of the repurchased assets will be earmarked for the initial Staking Boost Program.
The remaining ROOK balance will be conserved for future incentives, such as the launch of the new swap protocol or other major releases expected later in 2022.
More information on the Rook DAO Treasury’s CVX positions and historical inflows can be seen here.
The following schedule below presents the anticipated reward schedule for the initial Staking Boost Program:
Based on the reward schedule outlined above, we anticipate staking APRs will average close to 20% over an 8-week period, assuming that the total amount of staked ROOK is 250,000 units. The schedule below summarizes the expected APR over the 8 week period using these assumptions:
Note: The APR figures referenced above assume no inflows from the Rook Protocol fees, and assuming a static 250,000 ROOK units staked. These figures are subject to change materially due to differences in the number of staked ROOK as well as any changes made through governance, or the performance of the Rook Protocol. Real-time information on current staking APR and the total amount of ROOK staked can be found on the Rook Trade app at https://app.rook.fi/stake.
Staking Page: https://app.rook.fi/stake
Staking Contract (LiquidityPoolV4): https://etherscan.io/address/0x4F868C1aa37fCf307ab38D215382e88FCA6275E2