Utility / Mechanics

xKDK Staking

xKDK Staking: xKDK can be staked to earn Protocol Rewards and participate in governance.

Protocol Rewards:

• xKDK holders can stake for protocol rewards through a recurring epoch-based system.

  Each epoch lasts 3 days. Users may stake xKDK at any point during an active epoch. Rewards accrue continuously proportional to the xKDK staked.

• Forfeited KDK (from redemptions shorter than max vesting) and xKDK penalties from deallocation/unstaking from the Staking Rewards Utility Module go into a Rewards Pool.

• Rewards Pool is distributed to xKDK stakers (in the form of xKDK) proportionally to their stake.

• This Utility Module will be initially seeded with rewards to incentivize and reward early stakers.

• Protocol Rewards can be distributed in multiple tokens.

Governance:

• Staked xKDK can participate in governing the Kodiak Protocol (upon sufficient decentralization).

VIP Tiers:

• Perps users staking xKDK are additionally eligible for fee discounts. See VIP.