AI AGENTS
PREDICTIONS & YIELD
RWA & DIGITAL AWARDS
$LEGEND - The token
SPORTS ECOSYSTEM
Legend is in a privileged position to implement the Legend Staking vision. Our experience with sports-related web3 developments, along with our relationship with top-notch federations, give us the required expertise to run a Legend Staking project the public can trust.
Among the potential DeFi primitives to build upon, we focus initially on legend liquid staking. The remainder of this section describes the motivation behind this decision and details the overall solution, including the trade-offs we have made.
Liquid Staking is the most popular DeFi category in terms of Total Value Locked (TVL) Given that bootstrapping the protocol is our biggest challenge, we initially target this category with the aim to attract a portion of that TVL.
The Legend Liquid Staking protocol is an implementation of the Legend Staking vision. The following picture describes the main entities and flows.
The remainder of this document uses Ehereum as an example, but they apply to other EVM blockchains as well (L2, Polygon, Avalanche, Fantom, BSC, etc).
https://lh7-rt.googleusercontent.com/docsz/AD_4nXcTU5oo944hkEV5x6cqYbzsG8bRfMPelAeBF4b9iFdjP5ftcp1t6JPOcitVDY3qkLJA8O8UmVH8JUcmNAQGP8IyIFEo4XKU0421t1-Wrx8wEKOiYQv_myyz4pfbnmhzC_S4_GWRFRuCOZu-eHPhxguKtq0g?key=fpwk5fO5yYHgtu8Qa6emUQcb
Users stake ETH for a team (or player, but let’s go with the team example) on a Season Pool smart contract. We focus on binary pools consisting of two opposing teams -Real Madrid and FC Barcelona in this case-.
In exchange for the staked ETH, users get a liquid token representing their position in exchange. In this case, rmS24ETH for Real Madrid, and fcbS24ETH for FC Barcelona. This token accrues value over time. I.e. it should be redeemed for a greater amount of ETH in the future. How much value it accumulates depends on the details described below.
The user-staked ETH is deposited by the protocol in a liquid staking service. We assume Lido [3] Lido because it is the market leader and has multi-chain support (mainly Ethereum and Polygon). In exchange we receive stETH, which captures staking yield value, in order to build our rewards pool.
Users from the winning team receive the yield they accumulated during their position plus a fraction of the rewards from the losing team. How much depends on how their relative performance is measured.
Users from the losing team still receive some yield, but lower than what they had got if they simply staked on Lido themselves.
However, future versions of the protocol may conduct active funds management in order to increment the yield for all participants. In such a case, the protocol would participate in different DeFi activities (LPing, lending, yield farming) to gain additional rewards from the accumulated stETH. This is shown with dotted lines in the picture above.
When users redeem their Legend Liquid Staking tokens (rmS24ETH and fcbS24ETH in this example), the same operation is performed at the protocol level. The Season Pool smart contract will redeem the appropriate amount of stETH from Lido, and return the ETH (original amount plus accumulated rewards) back to the user.
The business model for Legend is based on taking a fee of the ETH deposited by users. These funds may be used to support company operations and/or accrue utility for the $LEGEND token, as described below:
This solution can be deployed in additional EVM chains by using Lido where supported, and blockchain-specific liquid staking alternatives otherwise.