Liquid Staking - myPLUME

What Is myPLUME

myPLUME is the premier liquid staking product for the PLUME token, built on Frax's frxETH and Plume staking contracts. It uses a one-token system, myPLUME, which gives users the ability to tap into DeFi while also earning staking rewards.

How It Works

When holding PLUME, users can deposit it to mint myPLUME, a yield-bearing asset loosely pegged to PLUME. As long as they're holding it, users will be accruing staking rewards, which they can then claim in the "Claim" section of Mystic. This allows you to earn staking rewards without running your own validator, while also using your myPLUME tokens in DeFi.

About myPLUME

In practice, when you stake PLUME to get myPLUME, your tokens are given to Mystic's choice validator. The respective staking rewards you get from staking, given in PLUME, are kept in the Plume Staking Contract, which we then retrieve and send to users when they claim.

The myPLUME peg is defined as 1% of the exchange rate on each side - 1.01 to .9900.

To ensure fairness, reward distribution is done linearly. This means that rewards are attributed according to the time each user has spent holding myPLUME.

The Buffer

Most PLUME deposited on Mystic is staked on the Plume blockchain. However, a small amount (2%) is kept as a safety fund / buffer instead of being staked. This both facilitates faster withdrawals and overcollateralizes myPLUME to cover slashing events/unforeseen penalties.

Withdrawing myPLUME

MyPLUME can be withdrawn directly for PLUME in one of three ways:

• Via Mystic's PLUME Buffer - if what you are withdrawing is within buffer capacity, you can always withdraw your myPLUME for PLUME instantly.

• Via AMMs - swap your myPLUME for PLUME directly on an ecosystem DEX such as Rooster Protocol or Ambient Finance.

• Via validator unstaking - you first unstake from the validator with Mystic and, after a time buffer, you can then withdraw your holdings. This time buffer safeguards you against frontrunning, MEV, and other arbitrage externalities.

Fees

myPLUME fees are as follows:

• Minting = 0%

• Yield Fee = 10%

• Validator Unstaking Withdrawal = 0.03%

• Instant Withdrawal (through Buffer) = 0.15%