Last month we announced that the IMX token buyback had started and that we would have distributed the protocol profits to IMX holders through a staking program. During the last few weeks we were able to buy around 750,000 IMX from the market and we are currently buying around 15,000 IMX each day as the protocol revenues are around $1500 per day.
Today, we are happy to announce that IMX Staking will officially go live on Wednesday, July 21st at 2pm CET.
Profits Distribution to IMX Holders
Impermax is a profit generator. Up to 20% of all the interest paid on Impermax is kept by the protocol as profit. The IMX token gives the right of ownership of the Impermax protocol, and for this reason the main users that will benefit from Impermax revenue stream are IMX holders. Protocol profits are used to buy IMX from the market, creating buying pressure, and these IMX are then distributed to holders through IMX Staking.
How to Stake IMX
You can already start staking by navigating to the staking section of our Web3 app. The staking process is immediate and you can stake and unstake your IMX at any time. By staking IMX you will obtain xIMX, a fully composable ERC20 token representing your share of the staking pool. Staking rewards will be automatically compounded to your IMX balance. Please notice that IMX Staking will be initially available only on Ethereum mainnet.
How Does it Work?
Staking is implemented through 2 main smart contracts.
- The main smart contract, the staking pool (or xIMX), is an ERC20 contract where users can stake and unstake their IMX. By staking they will receive a number of xIMX tokens representing their share of the staking pool. They can redeem these xIMX at any time for the underlying tokens. Whenever some IMX are sent to the staking pool they are split among all IMX stakers according to their share of the staking pool.
- The second smart contract is the reserves distributor. This contract holds all the IMX bought back from the market and distributes these IMX to the staking pool at the distribution rate. This rate is computationally defined and set to distribute all the IMX held by the contract in 90 days. The distribution rate is updated every time the IMX balance of the contract changes. Therefore, this contract will act as a buffer that always sees an outflow of IMX that will be distributed to stakers, and an inflow of IMX bought back from the market. This property will ensure that the distribution rate will be stable with time, and that there won’t be drastic changes to it on a daily basis.
At launch the reserves distributor will hold the 750,000 IMX bought back so far and therefore the distribution rate will be set at 8,333 IMX per day or 3,041,000 IMX per year (25% of the current circulating supply).
xIMX Ethereum address: 0x363B2DEaC84F0100d63C7427335F8350f596bf59
ReservesDistributor Ethereum address: 0xa6f3c27f1b503221f3a3c9d34f587252ecfb3160
Using Chainlink Keepers
Staking reward is transferred from the reserves distributor to the staking pool whenever someone calls the
claim() function. In order to ensure that the function is called periodically we have decided to use Chainlink Keepers, a decentralized service that ensures that certain actions are performed on the blockchain whenever some conditions are met.