How to Stake PEM & Join DAO
Learn how to stake PEM step by step and receive vePEM in order to become part of PembRock’s Decentralized Autonomous Organization.
The DAO comes bundled with staking. If you want to have influence over the course of PembRock’s development and get a portion of its earnings, you need to lock your PEM.
The longer you keep PEM staked, the bigger your influence. For example:
- 1,000 PEM staked for 4 years ≈ approx. 1,000 voting power (VP)
- 1,000 PEM staked for 2 years ≈ approx. 500 VP
- 1,000 PEM staked for 1 year ≈ approx. 250 VP
Voting power is expressed in vePEM tokens that are available to you right after staking the original PEM. The more tokens you stake, the higher the voting power.
The most vital feature of the DAO is that 100% of protocol profits are shared among stakers based on their voting power. What does this mean, exactly?
Say Alice stakes 2,000 PEM for 4 years, while Bob stakes 1,000 PEM for 1 year. Together, their voting power is 2,250 vePEM.
Of this 2,250 vePEM, 2,000 belong to Alice, and only 250 belong to Bob (because he staked less and for a shorter period). So if a protocol generates 100 PEM in weekly rewards, Alice will get 88.88 PEM, and Bob just 11.12 PEM.
In a nutshell, there are two factors that determine how much of an impact you can make:
- 1.The amount of PEM you stake
- 2.The period for which you stake that amount
In this walkthrough guide, we will tell you how to:
- stake PEM and get vePEM;
- adjust amount and duration, if needed;
- take part in the DAO;
- claim and withdraw.
Step 2. Click on the Connect Wallet button;
Step 3. Grant limited rights to the PembRock app inside the NEAR wallet;
Step 4. After that, you’ll be redirected back to the Staking page. Enter the amount you want to stake and the period (you may see the volume of voting power you get under the End Date drop-down menu). At the protocol level, stakes are re-calculated on Thursdays, so if you make the lock on any other day, the final amount of vePEM you’ll receive may slightly differ from what’s displayed here.
Step 5. Press Confirm.
The VP is decreasing gradually, but you can adjust your position to counter that.
For example, you’ve put 1,000 PEM for 4 years and got 1,000 VP. In a year, you come back to see that you have only 750 VP left (because one year has passed and there are three more to go).
You can adjust the position by adding another 1,000 PEM and getting +750 VP. You’d then have 2,000 PEM staked for 3 years with a VP of 1,500. Additionally, you can also prolong your staking for 1 extra year; that way, you’d have 2,000 VP staked for 4 years.
Step 2. Your balance shows tokens that are in your wallet but haven’t been staked yet. That’s the maximum you can put here. Type in the amount you’d like to add to staking and press Confirm;
Step 3. After that, you can continue to prolong the lockup period. Please note that you cannot decrease it.
The very first vote held by the DAO is on the distribution of community rewards set to go out in November.
Lenders’ Rewards are the returns generated by those who deposit assets into lending pools. Borrowers’ Rewards are the returns generated by those who borrow assets from leveraged yield-farming pools.
The steps below are identical for both categories.
Step 2. Allocate your voting power among pools using the Vote column. The higher % you give, the bigger the reward it will earn.
Remember that all % should add up to 100. Don’t worry, though — in case you miscalculate, the borders will turn red, and the Voting power used will tell you by exactly how much you overvoted.
Step 3. Press Vote and confirm the transaction in the wallet.
If you change your mind, you can re-vote while the voting window is still open. When making changes, please keep in mind that you’ll have to type in % for all assets again, and not only those you want new values for.
To withdraw your PEM tokens once the lockup period is over or claim the PEM rewards accrued to date, visit the Staking section. You’ll see two corresponding boxes right next to each other (the buttons won’t be gray when available).