Egoras V2 Overview
Egoras staking is the process that converts the EGC & EGR token into pooled collateral for the network. When users stake their tokens, they are able to mint eNGN to be used to fund illiquid real-world assets and turn them into tradable assets for a reward. The staker can lend the eNGN on the debt protocol.
Stakers earn weekly rewards for collateralising the network. Without staking, a user can only profit from an increase in the price of the token.
Who can stake?
Anyone who holds the EGC & EGR tokens. That said, if a staker holds less than $5 worth of EGR or EGC, gas costs may exceed the benefit of staking.
Basic Steps to stake
1. Transfer your tokens to a compatible wallet: MetaMask, Trezor etc.
2. Go to crypto.egoras.com and select the stake option.
3. Click on generate to populate the maximum amount of eNGN you’ll be able to mint, given your token holdings
4. Adjust the input amount to suit your strategy. Click on generate, and confirm the transaction.
Stakers can only mint eNGN at a minimum collateralisation ratio of 650%. Minting the maximum amount on token holdings worth $100 will result in $65 of minted eNGN. For the network to remain secure and fully collateralised, the community has settled on a conservative C-RATIO. However, the ratio could change in the future.
The simple math behind staking is this: if the value of the token increases, you’ll be able to mint more. And if the value of the tokens decreases below the liquidation price, you will lose your token holdings.
You can add EGC or EGR to your wallet and stake more at any time, provided your collateralisation ratio stays above or equal to 800%.
Claiming Rewards — Basic Steps
1. Rewards are calculated and made available per month
2. Use crypto.egoras.com to navigate to the Claim section.
3. Ensure that your collateralisation ratio is high enough to avoid liquidation: the required ratio is 800%. If not, you’ll have to buy more tokens or burn eNGN to restore your C-RATIO.
4. Browse through loans proposal to back a real-world asset
3. Click on Redeem to collect both your eNGN rewards after the assets have been backed.
How are rewards calculated?
When a user transacts on the swap, they pay a 0.3% fee. Those fees are distributed pro rata, to all stakers.
The more assets you back, the higher proportion of fees you’ll receive.
Every debt on the platform attract a generation fees of 13% and it distributed to the lenders.