Staked ADA from DeFi Smart Contract

Hey all,

I might have a technical question regarding the staked ADA from Smart Contracts.

Cardano enables the option to stake the ADA, which are locked in Smart Contracts. Wingriders offer ADA staking rewards in addition to the Fee and Farming rewards (tripple yield). See here the explanation: Staking & Smart Contracts. Welcome Riders! | by WingRiders | Medium

What happens with the ADA provided to Minswap liquidity pools?

Are the staking rewards distributed to the liquidity providers who take the high risk or is someone else getting the rewards?

What pool did you choose and why? Is there a possibility to apply as a SPO?

Thanks! :blush:

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The ADA is staked to this pool:

The rewards are distributed to yield farmers according to a point system:

I don’t know how this will change in the future but I am guessing that it would be subject to governance voting.

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Hi Sardonicus,

the article you cited for the $MIN point system only describes the reward distribution of farming rewards. I can’t find any word about ADA rewards from the staked ADA in the smart contract.

On the farming page I can see how the rewards are split, but what is with other liquidity pools where farming is not activated? Are the staking rewards from all pools on minswap distributed to the farming pools or is it distributed to all pools?

Also the ADA APR is not clear since the range is from nearly zero to 6-7%. If the MIN point system determines the ADA APR, then the APR range is strange and not clear.

For me this is an important topic, because Minswap currently has a TVL of about ~90 million ADA, which leads to 27k ADA staking rewards every epoch (considering a conservative Return on Stake of 4.4%). In my opinion there is no clarity what happens with these 27k - I can only see a pool with 100% fees. Where are these 27k going?

Thanks again!


Yes it describes the point system, the ADA part came later and was announced in the discord, and Twitter.

Only farming gains these ADA rewards.

The APR works like this: let’s say 125 000 ADA was gained from the staking then the next month it will be allocated to farms by point, 1 point is 1% of that total ADA and the APR depends on how many are farming. If more farmers join in the APR will go down because those total rewards are shared pro-rata. A pool can have less points and higher APR depending on how many are farming.

The pool has to have 100% margin because the rewards are redistributed.

Here is a tweet about it: