Staking dividends
Staked SPAPER earns a pro-rata share of protocol fees and of LP surplus above the reserve line, paid in USDT.
Staking is the act of locking SPAPER in the PaperStaking contract to receive dividends. A dividend is a USDT distribution split across all staked SPAPER in proportion to each staker's balance. SPAPER is minted to the trader's wallet on a loss; it earns nothing until it is staked.
What stakers receive#
- Half of every 2% fee collected by the protocol, covering both win fees and LP-side fees on losses.
- LP surplus above the reserve line. The reserve line is the LP balance the protocol retains for paying winners (initially 5,000,000 USDT). Only the portion of LP cash above that line is distributed, and only while the payout queue is empty.
Dividends are distributed approximately every hour. If no SPAPER is staked at distribution time, the amount is carried into the next distribution. There is no token inflation: every dividend is USDT that the protocol has already collected.
Rules#
- Minimum stake: 1,000 SPAPER.
- No lock-up and no cooldown. Unstaking is possible at any time.
- Claiming moves accrued dividends to the trading balance, from which they can be traded or withdrawn.
- Stake, unstake and claim are signed in the wallet and submitted by the relayer. No gas is required.
Example#
Alice holds 9,800 SPAPER from an earlier liquidation and stakes all of it. The figures below are assumptions chosen for illustration: 980,000 SPAPER staked in total, 40 USDT of fees booked during the hour, and an LP balance of 5,100,000 USDT with an empty payout queue.
| Input | Rule | Result |
|---|---|---|
| Alice's stake | 9,800 ÷ 980,000 | 1% of the pool |
| Fees booked: 40 USDT | Stakers receive half | 20 USDT to the pool → 0.20 USDT to Alice |
| LP: 5,100,000 USDT | Surplus above the 5,000,000 line | 100,000 USDT to the pool → 1,000 USDT to Alice |
share = 9,800 / 980,000 = 1%
fees = 40 × 50% × 1% = 0.20 USDT
surplus = (5,100,000 − 5,000,000) × 1% = 1,000 USDT
claimable after this distribution = 1,000.20 USDT
← Scroll sideways for long formulas
Fee dividends accrue continuously with trading activity; LP surplus is distributed only when the LP exceeds the reserve line and no winner is waiting.
Where the fees go#
| Recipient | Share |
|---|---|
| SPAPER stakers (dividends) | 50% of fees |
| Dev share: invite rebates | 10% of invitees' fees |
Dev share:  SOLON buyback and burn | 20% of the dev share (10% of all fees) |
| Dev share: operations | Remainder |
The protocol charges 2% of realised wins, plus a 2% LP-side fee on losses while the payout queue is empty. SOLON buybacks are executed off-chain on a periodic schedule; execution records will be published.
Payout queue and reserve line#
While the payout queue is active, LP surplus is not distributed: queued winners are paid first. Fee dividends continue whenever fees are booked.
Only the 24-hour Timelock can change the reserve line. Money released by lowering it can only reach SPAPER stakers through this dividend path. Separately, the Timelock can upgrade contracts or repoint the staking address after 24 hours' notice; see Risks.