Staking $PAD tokens is how the community gets to participate in launchpad projects on NearPad. In the article, we will walk you through the staking process, however, before we proceed, let’s talk about how staking tiers work.
PAD Tiers Explained
There are five tiers for staking $PAD. These tiers are:
Every pool has a base allocation of 1. However, there has been some misconception on how the multiplier works exactly. Specifically, it would appear that staking 1000 $PAD across five different wallet addresses nets more allocation than putting them in a single asset to qualify for tier 2. This is incorrect.
With every pool having a base allocation of 1, staking 1000 tokens in tier 1 gives you the base multiplier of 1. Therefore, staking it across 5 different wallets will give you a 5x multiplier. However, staking the 5000 $PADs in the tier 2 pool does the same thing as staking across five different wallet addresses, exposing you to the base multiplier of 1 and an additional multiplier of .375x. In other words, you get an additional .375x bonus on the 5x multiplier. The higher the tier, the more bonus you get alongside the multiple staking exposure.
Simplifying this further, we have:
With this out of the way, let’s walk you through how to stake
Staking $PAD Tokens
Prerequisite: Ensure your wallet is connected to Aurora Mainnet first. You can add it from https://chainlist.org/
- Go to https://app.nearpad.io/staking and click on Connect Wallet (if you’ve previously connected to the portal, your wallet will be automatically connected. Skipped to #4).
2. Select the wallet address you want to connect with in the Metamask popup window and click Next
3. Confirm the connection and click on Connect
4. Once connected, you will be able to see your wallet address and ETH amount.
5. Now, input the amount of $PAD tokens you want to stake. If you want to stake the entire amount in your wallet, just click on MAX
6. To proceed further, you will need to first approve the staking smart contract to interact with your $PAD tokens. Only after approval will you be able to stake. There are two options for approving; Unlimited Approval — illustrated by the infinity symbol, and Limited Approval — the Padlock symbol.
Limited approval is a one-off interaction meaning the contract will only be allowed to interact with the tokens for the amount specified and only once. This means if you want to stake more tokens down the line, you will have to approve it and pay gas fee. Unlimited removes this restriction. You wouldn’t be required to approve for subsequent staking.
Once you’ve selected the option you prefer, click on it. Metamask will pop up for you to pay gas fee to approve the interaction
7. After the transaction in #6 has been mined, you can now click on Stake to stake the token. Metamask will pop up once more to pay gas for executing this function. Once the transaction has been mined, your tokens will now be staked and the eligible tier will be shown in the User Tier header.
Unstaking your $PAD token is as simple as clicking Unstake. However, keep in mind that the first staking for $PAD token at any time has a 21 days lockup period where you cannot unstake the tokens. Increasing the stake position and claiming tokens for every IDO participation extends the lock in period by a week. Also, keep in mind that if you unstake your $PAD before first claiming the tokens for the IDO you participated in, you wouldn’t be able to claim the token unless you restake the $PAD token for the tier you participated
How to Participate in an IDO
To participate in an IDO once you’ve staked your tokens or tokens are already staked, do the following:
- Go to the IDO section for the project
- Click on Participate and pay gas fee
3. Once the transaction has been mined, Participate will change to Enrolled. If this change isn’t automatically reflected after transaction has been confirmed, refreshed the page.
4. Wait for the Enrollment period to elapse.
5. Participate in the IDO
How to Participate in IDO
Once the IDO is live, go to the IDO page — same page as you enrolled in — and:
- Click on one of the Padlock icon. The first icon is for limited approval, while the second is for unlimited.
- Metamask will pop up for you to pay gas for the transaction. Do so
- After the transaction has been mined, enter the amount you want to swap. Bear in mind that for limited approval, you can only enter the exact amount you approved.
- Click on Swap.
- If there is any unsold token after the first 24 hours of the IDO, an FCFS pool opens up for addresses that are either whitelisted or enrolled in the pool to participate. After the sales event has ended. You will now be able to claim your tokens. To do so, click on the Claim tab
6. Click on Claim
7. Pay for gas in Metamask and receive your tokens after the transaction’s been mind
Keep in mind that users allocation is calculated in real time, so every user can see their allocation at any moment during the enrollment phase