Genius Yield Staking Program: A Utility Token that Pays Dividends
Decentralized applications (dApps) continue to proliferate in the Cardano ecosystem. Over time, users will have to be more strategic about where they allocate their limited funds among a growing list of dApps. But let’s talk about the value you receive from staking GENS, the native token of the Genius Yield platform:
- What if you could get a 20% dividend on all trading fees earned from the Genius DEX?
- What if you could also get an additional 20% dividend of all vault fees paid by users of Genius Yield’s Smart Liquidity Vaults?
- What if you could unlock the option to obtain Genius NFTs with special features such as a 2–5% increase in staking rewards for a specific time period.
- What if you could get governance rights on the future development of Genius Yield?
- What if you could access advanced DEX trading features or premium Smart Liquidity Vaults not available to everyone?
- What if you could get access to premium content and discounts at the Genius Academy, which will include exclusive educational content provided by Dr. Lars Brünjes, the CTO of Genius Yield and Director of Education at IOHK?
Sounds too good to be true? That’s what you’ll get by participating in the GENS staking program.
Note: Input Output (IOHK) is the research and engineering company behind the development of the Cardano blockchain.
Genius Yield is building the first concentrated liquidity order-book DEX with a Yield Optimizer. The Genius DEX is expected to launch 3Q2022 and the Smart Liquidity Vaults are expected to launch later in 4Q2022. GENS is the fungible native token of Genius Yield. GENS holders will be able to stake their tokens in a Genius pool for many platform benefits. Let’s detail the benefits you’ll receive by participating in the GENS staking program below:
BENEFITS OF GENS STAKING PROGRAM
By participating in the GENS staking program you’ll have multiple sources of income.
Participants in the GENS staking program have four sources of staking rewards: the Genius DEX fees, the management fees of the Smart Liquidity Vaults, the performance fees of the Smart Liquidity Vaults, and the liquidity mining incentives.
1. 20% of Genius DEX trading fees — Outside of the standard transaction fee the Cardano network charges to submit a order, there are two fees charged when a transaction is executed on the Genius DEX:
- Genius DEX Fee — Trade fees that go to the Genius Yield company. 20% of these fees are returned to participants in the GENS staking program.
- LP Fee — Fees to compensate the liquidity provider (LP) for providing their capital.
2. 20% of Smart Liquidity Vault Fees — There will be multiple AI-power algorithmic trading strategies that will actively manage LPs’ funds to achieve the highest yield possible. The initial vaults available will be created and actively managed by Genius Labs, which will charge two fees.
- Management Fee — Is a standard fee charged as a percentage of the TVL (Total Value Locked), which is the total market value of cryptocurrencies deposited into a smart contract. The management fee covers expenses involved with managing the portfolio such as operations and administrative costs. GENS stakers would receive 20% of these management fees.
- Performance Fee — A fee charged as a percentage of profits made by a Smart Liquidity Vault strategy. In other industries the performance fee percentage is much higher than the management fee. In addition, the performance fee is only charged on capital gains, not losses. The performance fee incentivizes the creators of Smart Liquidity Vaults to work hard so that their strategies can get high returns since the majority of their compensation should come from this fee, instead of the management fee. GENS stakers would receive 20% of the performance fees generated.
Note: The exact fee breakdown is being researched. This information will be made public once finalized.
Liquidity mining incentives — GENS stakers will also receive liquidity mining incentives as GENS tokens. Liquidity mining is when a DeFi protocol such as a DEX rewards users with its native token for participating in the protocol.
3. Genius NFTs — Genius Yield plans to sell Genius NFTs, or non-fungible tokens, in various categories and quantities in the future. Some Genius NFTs will only be available to GENS holders in the GENS staking program. Depending on the Genius NFT type, holders can access a 2–5% boost in APY through extra GENS staking rewards from liquidity mining for a specific time period.
4. Governance rights — The GENS staking program gives you governance rights over the protocol, which will eventually allow you to vote on Genius Improvement Proposals (GIPs) or submit your own GIP. GIPs, like Cardano Improvement Proposals, are formal proposals that update the functionality or a feature of the protocol. The implementation of GIPs will be decided by the GENS community, or those in the GENS staking program.
These governance rights will culminate into the creation of a DAO, or decentralized autonomous organization, for the Genius Yield platform. A DAO is an entity with no central leadership. DAOs are usually made up of thousands of holders of the token community who will collectively make decisions for the protocol. Funds in the DAO Treasury will eventually be controlled by GENS holders in the GENS staking program.
5. Advanced DEX features and premium Smart Liquidity Vaults — GENS stakers will get access to advanced trading features and premium Smart Liquidity Vaults that are not available to non-stakers.
6. Premium Genius Academy content — The Genius Academy will be an avenue where users, whether they are beginners or experts, can come to learn more about different topics related to cryptocurrency. GENS stakers will have access to premium educational content and can receive discounts on Genius Academy content. In addition, one of the teachers in the Genius Academy will be Dr. Lars Brünjes, the CTO of Genius Yield and Director of Education at IOHK. Dr. Brünjes has trained thousands of people through the Plutus Pioneer Program on how to write smart contract code to create dApps in Cardano’s programming language Plutus.
The GENS staking program has multiple benefits for a GENS holder. A passive 20% dividend, the ability to unlock Genius NFTs with special features such as APY boosters, voting rights over the protocol, and educational content through the Genius Academy. Interest for the GENS token remains high, as over 13,000 different wallet addresses are currently participating in the Genius Yield ISPO.
Are you ready to join the GENS staking program?