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Why Staking?​

The concept of stBLEND within Vino is straightforward and very simple:

  • $stBLEND holders receive only $VINO tokens
  • $BLEND holders receive RWA yield from the assets backing $BLEND

The larger the proportion of users who stake, the greater the yield for users who simple hold $BLEND.

A simple example of this is let’s say:

  • The assets backing $BLEND are earning 10%
  • 50% of $BLEND is staked ($stBLEND)

This means that 50% of $BLEND holders are forgoing yield, meaning simple $BLEND holders are earning 2x the yield (20%), while the $stBLEND holders are earning $VINO tokens.

This mechanism self-regulates and finds market equilibrium.

  • Users stake because they want $VINO

  • This boosts the yield for $BLEND

  • $BLEND grows, leading $VINO to be valued higher

  • This leads to higher TVL and stronger network effects.

$VINO, the protocol's non-transferable governance token, is distributed in fixed-number every day pro-rata to stakers in the contract.