Rainbow staking is live
Rainbow announced that $RNBW staking is live in the iOS and Android apps, with tiered membership benefits and fee cashback paid as staked RNBW.
What is staking?
- You've probably heard the word "staking" thrown around a lot in crypto. Staking means putting your tokens to work in exchange for benefits.
- Instead of just holding $RNBW in your wallet, you commit it to the protocol — and the protocol rewards you for it. Think of it like a loyalty program, all happening onchain.
How does it work*?
- Stake your $RNBW in the iOS or Android apps.
- Receive up to 100% of fees back as staked RNBW.
- Unstake anytime. There’s no cool-off, lockups or waiting periods. Just pay a 10% exit penalty distributed to all other stakers.
Rainbow is moving towards a tiered membership system, staking RNBW is the first way to qualify. Initial tiers (staked RNBW amount) are as follows:
- Silver (5,000) → 25% fee cashback in RNBW.
- Gold (10,000) → 50% fee cashback in RNBW.
- Diamond (15,000) → 75% fee cashback in RNBW.
- Black (20,000) → 100% fee cashback in RNBW.
*This is Rainbow’s initial version of staking with additional membership benefits expected to be added in the coming months and quarters.
Management Commentary
“Share of wallet” continues to be the most important metric to indicate our progress becoming onchain Robinhood, one financial super app for all of a user’s onchain investing and finance needs. The number one reason we’ve historically heard from users about trading volume leaking elsewhere is due to fee consideration. We are working on a number of ways to test and iterate around fees. Staking is one of those first iterations.
Below are two ways we think about staking for our users.
- Peter Lynch's "One up on Wall Street" would say that if you love and use the Rainbow product, you're well informed to consider being an owner of the $RNBW token. Rainbow Rewards makes that the default experience in Rainbow by giving all users $RNBW cash back on every swap transaction. Staking leans into this concept one step further.
- Another way to think about staking is up to 100% of a users’ fees are being DCA'd into RNBW. Instead of Rainbow collecting swap fees, Rainbow is DCA’ing 100% of your swap fees into staked RNBW on your behalf. If you're long Rainbow / $RNBW, it's zero net fees to swap in the app (while accumulating more $RNBW from those who unstake from not being as long term aligned).