TLDR / Summary
Last updated
Last updated
Not everyone enjoys reading lengthy texts to grasp concepts and ideas. That's why we've opted to provide a concise summary of how Shark Protocol operates, utilizing a series of images and examples to illustrate the flow of processes within the protocol.
Example: In a price prediction game on Bitcoin ($BTC) with a target price set at $70,000, participants predict whether the price will be HIGHER or LOWER than $70,000 within a 5-minute timeframe. Bulls and Bears wager their amounts. Those with the correct prediction win the prize pool.
Note: $SHARK staking automatically opens positions on both sides of the game to make sure there are positions on both side of the game.
There is also a 2% fee taken by the protocol which is distributed to:
80% $SHARK stakers
10% $WHALE stakers
8% Racoon NFTs DAO
2% $RAC DAO
These fees are used to maintain the protocol and incentivize the $SHARK stakers as they are crucial to the operations.
$SHARK staking represents a native liquid staking mechanism. When you stake $SHARK, you receive $lsdSHARK, whose value appreciates over time with the addition/distribution of more $SHARK into the staking contract. You have the option to unbond your $SHARK using either the classic approach, which requires 10 days, or the instant approach, which completes within 15 seconds but incurs a 10% fee (distributed to $SHARK stakers).
$SHARK is added to the staking contract through:
Staking rewards every 24h
Shark Protocol fees
Shark Staking's prediction games won
In the below image, you can find how do all pieces interact with each other.
