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Mainnet Staking is here!

Announcements
Education

2024-06-12

The moment you’ve all been waiting for has finally arrived! Mainnet staking is live as of June 14, 2024. 1-million CYBER generated during Season 2 of the CYBER Rewards Campaign is claimable by stakers.

Mainnet Staking is here!

This concludes a months-long staking campaign that generated more than $2,000,000 worth of rewards for Cyber community members from several third-party partners. Participating partners included Polyhedra and Space ID, which have already distributed rewards to CYBER stakers. Additionally, other partners like Phaver, Attic, and CARV created exclusive perks, such as whitelist spots or other community rewards, specifically for CYBER stakers who are also members of their communities. 

Together with these partner rewards, the 1,000,000 CYBER tokens claimable as of June 14, 2024, bring the total rewards to more than $10,000,000. These are just a glimpse of the exciting opportunities awaiting CYBER stakers with Cyber Mainnet Staking.

Before Mainnet: CYBER Season 2 Rewards Recap

During the last season of CYBER rewards, three distinct staking contracts were active across BNB Chain (BSC), OP Mainnet (OP), and Ethereum (ETH). In just the past three months, 4,500,000 CYBER was staked across these networks, with 1,000,000 CYBER in rewards generated. This is in addition to the partner community rewards and perks created during this campaign.

Another benefit offered to CYBER stakers on BSC, OP, and ETH was the chance to join early access to mainnet staking, which was available until June 3, 2024. This offered stakers the opportunity to receive bonus rewards and free migration, including gasless bridging to Cyber Mainnet. Those who took advantage of this will continue to generate rewards.

If you missed early access, don’t worry. The opportunity to earn even more rewards begins on June 14, 2024, with the launch of mainnet staking.

Upcoming Cyber Mainnet Staking Rewards

An initial 500,000 CYBER has been allocated to reward early mainnet stakers during the first three months of mainnet staking. 50,000 of these rewards are reserved for dual staking rewards through our partner, AltLayer. More details about dual staking and rewards will be announced on Monday, June 17, 2024, so stay tuned!

Moving forward, staking rewards each year will be determined through DAO governance and are subject to change. However, significant staking rewards are anticipated, with 5,500,000 CYBER allocated over the next several years to attract stakers with compelling rewards and ensure the long-term sustainability of network staking. Again, the exact rewards and distribution will be set through DAO governance. 

Why Stake on Cyber Mainnet?

Staking CYBER on Cyber Mainnet not only secures the network and boosts liquidity across the ecosystem, but also offers substantial benefits to CYBER stakers. 

For stakers:

  • Millions in Economic Rewards & Incentives: In the first quarter alone, 500,000 CYBER will be generated as rewards, corresponding to an initial APY of around 50-60%, given that approximately 75% of the 4,500,000 CYBER staked during the last campaign have already joined mainnet staking. The actual APY is subject to change and is expected to decrease as more holders stake CYBER on Cyber Mainnet, so staking early yields higher rewards. Going forward, quarterly rewards will be announced before the end of active rounds and ahead of the next. 
  • Governance: Staked CYBER, via derivative tokens cCYBER and stCYBER, grants holders the ability to submit and vote on governance proposals, directly influencing the ecosystem's future. To participate in governance, CYBER holders must stake their CYBER and hold cCYBER or stCYBER.
  • Additional Earnings Potential in the Future:  Looking ahead, CYBER will also be stakeable on EigenLayer AVS (Actively Validated Services), where stakers will be eligible to share the earnings generated from various infrastructure services they support. This introduces another opportunity for stakers to benefit from the growth and success of the Cyber ecosystem and receive additional financial rewards for their contributions.

How CYBER Mainnet Staking Works

As we transition to mainnet, CYBER holders have two primary staking options: the Cyber Vault and Cyber Staking Pool contracts. Both options distribute rewards programmatically based on predefined rules, with the total staking rewards shared between users of both the Cyber Vault and Cyber Staking Pool.

The Cyber Vault offers a user-friendly frontend interface, while the Staking Pool requires users to interact directly with smart contracts. The Cyber Vault simplifies the staking process by interacting with the Staking Pool on behalf of stakers, making it ideal for those seeking an easier, more automated staking experience. In the future, additional staking options may be introduced by parties other than the Cyber team. 

  1. Cyber Vault: This is an EIP-4626 Vault contract that simplifies and enhances accessibility for staking on Cyber Mainnet. It offers auto-compounding, no minimum stake requirements, and instant liquidity through cCYBER.
  2. Staking Pool: Designed for holders with at least 1,000 CYBER, this direct staking contract offers a more hands-on approach with some restrictions, such as not offering auto-compounding or instant liquidity. This option may suit those who are more technical and hold significant amounts of CYBER.

Together, these contracts provide robust staking options, making Cyber Mainnet staking accessible to a diverse range of users with varying needs. Both options issue tokens to stakers that represent their staked CYBER, enabling them to participate in governance while staking.

Users of the Cyber Vault receive cCYBER, which is transferable and benefits from auto-compounded rewards. Those using the Staking Pool receive non-transferable stCYBER and must manage their staking more directly, as this option does not offer auto-compounding benefits. Further details on the differences between these two options are provided below.

Cyber Vault vs. Staking Pool

The Cyber Vault operates similarly to stake management facilitators like Lido on Ethereum. It automates claiming and staking rewards, increasing the efficiency of staking. The Cyber Vault charges a 10% fee on rewards, which is used to fund the Cyber Treasury to support future rewards and to sustain ecosystem growth. This fee is comparable to most Staking-as-a-Service providers, including Lido, which also charges a 10% fee.

In contrast, the Staking Pool offers a more involved staking experience that requires manual interaction with smart contracts. Using the Staking Pool on Cyber Mainnet can be thought of as similar to direct staking on Ethereum which has additional requirements, including a minimum stake of 32 ETH and running a node. 

Holders of stCYBER and cCYBER typically face a 7-day unstaking period when unstaking their staked CYBER. However, because cCYBER is transferable, holders can immediately exit their staking position by swapping the asset on a DEX. In contrast, because stCYBER is non-transferable, therefore this immediate exit option is not available to its holders.

How to Stake on Cyber Mainnet

Joined During Early Access

The Cyber Vault is the default option for stakers. If you joined early access to mainnet staking, your CYBER is automatically bridged onto Cyber Mainnet and staked in the Cyber Vault. You benefited from auto-migration, zero gas fees, and a bonus multiplier for the rewards claimable on June 14.

Once mainnet staking officially begun, if you opted-in you received cCYBER, which immediately began earning new rewards in CYBER. Because the Vault claims rewards from the staking pool and stakes automatically, the exchange rate between CYBER and cCYBER changes, as does the voting power of cCYBER.

If you joined during early access and wish to withdraw, you have two options. You can either unstake your cCYBER and undergo the 7-day unstaking period, or you can swap your cCYBER for CYBER on a DEX to avoid the unstaking period. However, if you choose to swap cCYBER for CYBER, the amount of CYBER you receive will likely be lower than what you would receive by unstaking, depending on the exchange rate.

Did Not Join During Early Access

If you did not join early access to mainnet staking, you have two options: 

  • Continue staking on Cyber Mainnet for additional rewards, or,
  • Withdraw your CYBER onto the original network if you no longer wish to continue staking.

How to Continue Staking If You Did Not Join Early Access

If you missed joining early access to mainnet staking, you’re still eligible to earn a portion of the 500,000 CYBER being distributed over the next three months, as well as the staking rewards that will be distributed over the next several years. 

The process is similar to if you had joined early access, however, you need to bridge and stake yourself. The Vault Contract offers a frontend, making it a simple one-click process to bridge and stake onto Cyber Mainnet.

How to Withdraw If You Did Not Join Early Access

If you choose to withdraw on or after June 14, you will need to manually withdraw your CYBER from the withdrawal pool on the network where it was staked (Ethereum, OP Mainnet, or BNB Chain) and undergo a 7-day unstaking period. 

Claiming Season 2 Staking Rewards on Cyber Mainnet

Regardless of your participation in early access to mainnet staking, you will need to claim your Season 2 Staking Rewards starting on June 14, 2024. All rewards are distributed on Cyber Mainnet and can be claimed through the CYBER staking dashboard.

When claiming your rewards on Cyber Mainnet, you see two options: “Stake” or “Claim”.

  • Stake: This option automatically claims and stake your rewards through the Cyber Vault, increasing your cCYBER holdings and future rewards, including a share of the 500,000 CYBER allocated for the first three months of mainnet staking.
  • Claim: This option releases your CYBER rewards immediately on Cyber Mainnet without staking them.

If you choose to claim your CYBER on Cyber Mainnet, you have two further choices:

  • Provide liquidity on DEXs, like CyberSwap powered by iZUMi: By depositing your CYBER into pools on a DEX, including CYBER/WETH or cCYBER/CYBER, you earn rewards from transaction fees on the swaps and can accumulate points towards rewards from the teams operating the DEXs. More details about additional rewards will come from these teams – so keep your eyes peeled.
  • Choose not to participate further: If you do nothing, you stop earning rewards immediately.

Both staking your Season 2 Rewards and providing liquidity on CyberSwap are mutually beneficial actions that help secure Cyber, or enhance liquidity within the ecosystem, while also offering additional rewards in the short term. These activities align CYBER holders with the broader goals of Cyber ecosystem, furthering Cyber’s commitment to unite community, token holders, and developers in establishing the Layer 2 for Social.

The Next Chapter of CYBER Staking

CYBER Mainnet Staking marks a natural next chapter for CYBER holders. We've already distributed millions of dollars worth of CYBER during the first few months of our staking program, but this is just the beginning. More substantial rewards and benefits, including enhanced governance capabilities, are coming soon. The Cyber Vault and Staking Pool contracts are designed to make staking accessible to a broad range of CYBER holders, ensuring that everyone can participate. 

As we move forward, the launch of mainnet staking not only offers high returns – with an initial APY of 50 to 60% – but also grants direct influence over the ecosystem's development through governance tokens like cCYBER and stCYBER.

Stake early to maximize your returns and actively participate in shaping the future of Cyber's growing ecosystem. More opportunities will come from staking and dual staking in the future, but in the short term, we’re excited to distribute 500,000 CYBER in rewards over the next three months alone. 

Don’t miss out. START STAKING through the Cyber Vault interface. 

If you participated in Season 2 staking, don’t forget to stake or claim your rewards. Use them to generate even more rewards and support the Cyber ecosystem by staking through Cyber Vault, or providing liquidity on CyberSwap. Stake or claim your rewards today!

Legal Disclaimer

The information in this communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy any CYBER, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law.

* Updated June 14, 2024 to provide links to Cyber Vault, CyberSwap, and Season 2 Rewards Claim pages.