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Astar dApp Staking V3: a new paradigm

This week marks a milestone for Astar network with the introduction of dApp Staking V3.

This latest version of dApp Staking introduces important changes, and in this article, we explore what these changes imply and how they affect Algem and our community.

Understanding dApp Staking V3

DApp Staking V3 is based on the previous dApp Staking model, keeping the fundamental principle of locking ASTR tokens on dApps to earn ASTR rewards while supporting those dApps or projects, which also receive tokens as rewards.

The main new addition to this version is introducing the concept of periods and sub-periods.

Each dApp Staking period consists of two subperiods:

  • Voting subperiod: Lasting 11 days, ASTR holders participate by staking on their favorite dApps. No dApps or users receive basic rewards during this sub-period.
  • Build&Earn subperiod: Lasting 111 days, users and dApps earn rewards during this phase.

At the end of each period and the start of a new voting subperiod, all staker tokens are unstaked but remain locked in users’ wallets. Consequently, users must re-stake their tokens on dApp for the new cycle.

In simpler terms, users must re-stake their ASTR tokens every 120 days (or 4 months).

To fully understand dApp Staking V3, please see Astar’s blog post and official documentation.

Algem’s Migration to V3

Algem, a liquidity staking protocol based on the dApp staking mechanism, offers nASTR, a liquid token offering access to dApp staking rewards.

From a technical point of view, the Algem development team has been working over the past few weeks to ensure that the complete Algem protocol and related smart contracts are compliant with the updates introduced in dApp Staking V3.

The new smart contracts have been audited by Hashlock, our security audit partner.

After the release of dApp Staking V3 on Astar’s main network, the development team placed Algem in maintenance mode. This allowed us to secure, update smart contracts, restake all tokens and verify every step of the process before lifting the maintenance mode, allowing the community to access Algem’s services and functionalities again.

The migration process has been completed, with maintenance mode lifted on Algem.

What does this mean for Algem?

The introduction of periods represents a challenge for all dApps, who must compete to reach the highest tier and maintain the trust and support of their stakers. With each new voting sub-period, dApps have to innovate to attract and keep stakers through campaigns, marketing initiatives or communication strategies.

Algem is not exempt from this challenge. However, our main objective remains liquid staking and the nASTR token, and it is imperative that the protocol continues to improve the utility of the nASTR token.

On the technical side, Algem has been updated to support the period concept, ensuring that Algem initiates a new staking process for all contracts at the start of each new voting period. Other functionalities such as staking, unstaking or claiming remain unchanged.

From the user’s point of view, there are no significant changes. Users can continue to benefit from the same services as before:

  • Liquid dApp Staking and receiving nASTR tokens.
  • Using nASTR tokens in adapters.
  • Claiming dApp Staking rewards.
  • Unstaking, waiting for the unlock period and withdrawing tokens.

The only change for users is that during the voting subperiod, no rewards are accumulated. Consequently, the staking rewards on Algem’s dashboard remain static until the start of the build&earn subperiod, when users begin to receive rewards.

If you are a liquid staker on Algem, no action is required. Once the maintenance has been lifted, you can carry out all actions as before.
If you are a staker on Algem in dApp Staking, you will need to restake your tokens on Algem and make sure to repeat this process every 120 days to continue earning ASTR tokens and supporting Algem.

About Algem

Algem is a decentralized application built on the Astar Network and offers two main features: liquid staking and liquid lending. As their names suggest, these two options let ASTR holders keep their assets liquid while putting them to work. Also, the liquid staking and lending solutions let users use Algem’s liquid nASTR tokens across Astar’s Defi ecosystem to earn staking rewards and make more money. In doing so, Algem supports other Defi protocols by providing liquidity and creating a sustainable and cooperative ecosystem on the Astar Network and Polkadot.

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