Introduction to Beta Staking: Unlocking the Potential of Your ALEO Tokens

In the rapidly evolving world of blockchain and decentralized finance (DeFi), maximizing the utility and rewards from your digital assets is paramount. Beta Staking emerges as a pioneering decentralized protocol designed to empower users to stake their Aleo Credits seamlessly, earn rewards, and participate actively in the Aleo blockchain network.

What is Beta Staking?

Beta Staking is a decentralized protocol that allows users to stake their Aleo Credits on the Aleo blockchain network effortlessly. By staking through Beta Staking, users not only earn Beta rewards but also receive stALEO tokens as proof of their stake. These stALEO tokens are liquid and can be used across various DeFi platforms, providing both liquidity and the opportunity to compound earnings without interrupting the staking rewards.

How Does Beta Staking Work?

Beta Staking simplifies the staking process into three straightforward steps:

1. Stake Your Tokens: Begin by staking any amount of your ALEO tokens through the Beta Staking protocol.
2. Receive stALEO Tokens: Upon staking, you receive stALEO tokens equivalent to the amount staked, based on the current exchange rate. These tokens start accruing rewards in real-time.
3. Utilize in DeFi: Use your stALEO tokens across different DeFi platforms to further compound your daily staking rewards, enhancing your earning potential.

When you stake ALEO Credits, Beta Staking aggregates and deposits them into official Aleo staking nodes. This not only facilitates participation in the network’s operation but also enables you to receive Proof-of-Stake (PoS) rewards from official nodes. When you decide to withdraw your stake, simply burn the corresponding amount of stALEO tokens to initiate the withdrawal process, retrieving both your principal and accumulated rewards.

Why Choose Beta Staking?

Beta Staking offers a multitude of benefits that make it an attractive option for ALEO token holders:

• Optimized Rewards: The protocol continuously monitors node performance, security, and yield, dynamically selecting the optimal staking nodes to maximize your returns.
• Liquidity and Flexibility: With stALEO tokens, you maintain liquidity of your staked assets, allowing you to trade or participate in other DeFi activities without halting your staking rewards.
• Future Benefits: Beta Staking plans to introduce additional perks, such as platform governance rights, distribution of a portion of the rewards, and access to platform credits for more privileges.

How Are Rewards Distributed?

All staked ALEO Credits are pooled together in a unified pool. The PoS rewards received daily are injected back into this pool. Each staker holds a proportionate share of the pool, and rewards are distributed based on these shares. This means that your earnings grow in alignment with your stake relative to the total pool.

Staking and Redemption Rules

To optimize earnings and minimize network gas costs, Beta Staking batches the staking process. Instead of depositing each staked ALEO Credit immediately, the protocol accumulates a certain amount (e.g., every 12 hours or once 1,000 ALEO Credits are accumulated) before depositing them into the official nodes. This strategy ensures maximum utilization of funds.

When it comes to redemption:

• If there are ALEO Credits in the pool that are not yet staked, these are prioritized for redemption, allowing users to withdraw without impacting the rewards generated by staked tokens.
• The redemption process involves a waiting period due to Aleo’s official staking limitations, typically around 360 blocks or approximately 10 minutes.

Calculating APR and Exchange Rate

Annual Percentage Rate (APR):

Understanding how the APR is calculated is crucial for evaluating your potential returns. Here’s a detailed explanation:

APR Calculation Formula:

The APR is calculated using the following formula:

Where:

• Daily Rewards: Total ALEO Credits earned from PoS rewards distributed between yesterday at 08:00 UTC and today at 08:00 UTC.
• Average Daily Staked Amount: The average total amount of ALEO Credits staked in Beta Staking during that 24-hour period.
• 365: Number of days in a year to annualize the rate.
• 100%: Converts the decimal to a percentage.

stALEO to ALEO Exchange Rate:

• Dynamic Exchange Rate: The exchange rate between stALEO and ALEO Credits increases over time as staking rewards are accumulated.
• Initial Rate: Initially, staking 1 ALEO Credit grants you 1 stALEO token.
• Growth Over Time: As staking rewards are distributed, the total ALEO Credits in the pool increase, but the total stALEO tokens remain the same, causing the exchange rate to rise.
• Calculation:

How to Redeem Your ALEO Tokens

Redeeming your ALEO tokens is straightforward:

1. Burn stALEO Tokens:

• Initiate the redemption by burning the corresponding amount of stALEO tokens based on the current exchange rate.
• Calculation: Determine the amount of ALEO Credits you will receive:

2. Wait for Unstaking Period:

• Due to network protocols, there’s an unlocking period of about 360 blocks (approximately 10 minutes).

3. Claim Your ALEO Credits:

• Once the unlocking is complete, you can claim your ALEO Credits from the smart contract.

Note: As time progresses and the exchange rate increases, the same amount of stALEO can redeem more ALEO Credits, resulting in higher staking rewards.

Beta Staking Protocol Fees

Currently, Beta Staking does not charge any protocol fees during its initial stages. All PoS rewards are fully distributed to stakers. In the future, to support the platform’s sustainability:

• A 10% protocol fee on staking rewards is planned.
• The exact fee percentage and its allocation will be determined through community governance, ensuring transparency and fairness.
• Users are encouraged to participate in community discussions to share their suggestions and opinions on protocol fees.

Conclusion

Beta Staking offers an innovative and user-friendly approach to staking ALEO Credits, combining the benefits of optimized rewards, liquidity, and future growth opportunities. By choosing Beta Staking, you become part of a dynamic ecosystem that values user participation, security, and maximizing returns. Whether you’re new to staking or an experienced user, Beta Staking provides the tools and support to enhance your DeFi journey.

Join Beta Staking today and unlock the full potential of your ALEO tokens!

About Beta Staking

Beta Staking is a decentralized staking platform on the Aleo network that allows users to stake their ALEO credits, earn rewards, and contribute to the security and growth of the Aleo ecosystem. Our platform is designed to provide a seamless staking experience with fair reward distribution, enabling users to maximize their returns while participating in the future of decentralized finance.

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