Staking

Stake PARCHMENT to earn a share of the fees Parchment keeps, paid in USDC, plus PARCHMENT from early-exit penalties.

• No unstake lock. You can unstake at any time. Unstaking returns your PARCHMENT and any USDC already owed to you.
• Rewards are shared in proportion to stake.
• Each new USDC deposit to stakers is paid out gradually, over about 7 days. Staking just before a deposit does not capture it.
• PARCHMENT still in its lock or vest can earn USDC too, at half weight. See Yield on locked PARCHMENT.

Fee split

Fees Parchment keeps (after referral shares) and the 2% loss fee on losing trades are split between stakers and the treasury. The stakers' share depends on pool coverage: the pool's cash divided by its reserve (what it owes the queue, plus open profits, plus a safety cushion).

The share moves linearly between these points.

Surplus sweep

When the pool holds more than it needs, part of the excess is shared out:

• At most once an hour, and only while the payout queue is empty.
• It moves 1% of the cash above the target: 150% of the reserve, or $250k if that is higher. The target can never be set below 150%.
• Each sweep is also capped at 1% of the reserve.
• What it moves is split 50% to stakers, 35% to the treasury and 15% to growth.

Yield on locked PARCHMENT

PARCHMENT you earned from losses that is still held for you, locked, vesting, or vested and not yet released, earns a share of the stakers' USDC without being staked. It counts at 0.5x weight: 100 locked PARCHMENT earns like 50 staked PARCHMENT. Parchment's admin can change the weight, up to 1x.

• A mint counts once its UTC day is finalized (while it is Provisional, it does not).
• Your weight is updated when your balance is synced. Anyone can sync anyone. Parchment's keeper syncs after each change to your lock and vest, and the app adds a sync when you release or exit early. Until a sync, your previous weight keeps earning.
• When you release vested PARCHMENT to your wallet or exit early, that PARCHMENT stops earning locked yield. Stake it to keep earning.
• Locked yield is paid in USDC together with your staking rewards: claiming, staking and unstaking pay both.
• It does not earn PARCHMENT from early-exit penalties, and it pays no staking referral bonus.
• If Parchment's admin voids a mint, the admin can also return that owner's unpaid locked yield to stakers.

When it is on, the staking views show a Locked APR: the USDC part of the staking rate, at the locked weight (0.5x).

Early-exit penalties

When someone exits a PARCHMENT vest early, the penalty (from 50% down to 0%) goes to stakers in PARCHMENT. Each penalty is paid out gradually over 7 days, in proportion to stake at each moment.

Staking referrals

You can bind a staking referrer once, from your own address, before your first staking reward. When you are paid a reward, your referrer earns 10% of it and their referrer 1%. These bonuses are paid by the treasury out of its share. Your own reward is never reduced.