Legend Staking is an innovative concept that combines traditional DeFi primitives with a gamified experience linked to real-world event outcomes. In this document, we detail how Legend provides the implementation of this approach through liquid staking in PoS blockchains whose yield is bound to sports results; therefore adding an exciting competitive layer to the staking process. In addition, we describe how this approach fits within the Legend ecosystem and how it is used to accrue utility for $LEGEND.

Overview

Legend Staking merges the worlds of Decentralized Finance (DeFi) and real-world events to create a more engaging and interactive financial experience. By integrating gamification elements into various DeFi primitives, Legend Staking allows users to enhance their financial activities with an added layer of excitement tied to the outcomes of events such as sports matches, esports tournaments, and other competitive happenings.

At its core, Legend Staking transforms traditional DeFi operations by linking the yields and rewards from these activities to the performance of real-world teams, players, or events. This approach not only offers users the opportunity to earn financial returns but also engages them on a personal level by allowing them to be rewarded based on the success of their favorite teams or events.

Enhanced primitives

This gamification concept can be applied to a variety of DeFi primitives, including -but not limited to- the following:

Native Staking	Validators in Proof of Stake (PoS) blockchains may choose to stake the native currency in nodes where reward rates are dynamically adjusted according to an external sports event.
Liquid Staking	Like the former, but increasing the liquidity of the users’ stakes and allowing their use in additional DeFi protocols for extra yield.
Liquidity Provision	Liquidity providers can choose pools associated with specific teams or events. The rewards from providing liquidity are adjusted based on the performance of the selected team. For example, if a user's chosen team wins a match, their share of the trading fees could be increased proportionally.
Lend & Borrow	Interest rates for lending or borrowing can be dynamically adjusted based on the outcomes of real-world events. For instance, lenders who support a winning team might receive higher interest rates, while borrowers associated with losing teams might face adjusted borrowing costs.

💡Where does the extra yield come from?

A long position on actor A is a short position on actor B; being A and B teams, players or any other real-world entities which can be somehow measured one against the other in order to determine their relative performance.

Therefore, if A outperforms B, the yield generated by users supporting B is partially delivered to users supporting A. Additional yield may be generated by active management of users’ funds at the protocol or project level.

Expected benefits

Increased Engagement: By tying financial rewards to events that users are passionate about, Legend Staking enhances user engagement and encourages active participation.
Additional Yield Sources: Users can diversify their DeFi strategies by incorporating real-world event outcomes, potentially leading to higher or more dynamic returns.
Community Building: Aligning financial incentives with sports and events fosters a sense of community among users who share common interests.
Innovative Financial Products: Introducing gamification opens the door to novel financial instruments that blend entertainment with investment.