How does the Gravedigger work?

The Gravedigger allows users to stake their assets in exchange for LSD tokens, which are yield-bearing assets that accrue in value every epoch. This enables users to earn staking rewards while simultaneously leveraging the main chain token.

Step-by-Step Guide on Using the Gravedigger

Follow these steps to stake your assets on the Gravedigger platform and receive the LSD tokens:

  1. Connect your wallet: Go to the Gravedigger and connect your wallet (such as Station, Keplr, Metamask) to the platform.

  2. Stake the asset: navigate to the "Stake" section on the platform. Enter the amount of tokens you would like to stake and confirm the transaction. The Gravedigger charges no deposit fees for staking your tokens.

  3. Receive LSD asset: Once your tokens are staked, you will receive an equivalent amount of LSD tokens. These tokens accrue in value every epoch, allowing you to earn staking rewards.

  4. Utilize LSD tokens in DeFi protocols: With your LSD tokens, you can participate in various DeFi protocols within the ecosystem, such as lending, farming, and borrowing. This enables you to earn additional APY while continuing to receive staking rewards from your LSD tokens.

  5. Trade or farm LSD tokens: you can trade or farm your LSD tokens on multiple DeFi platforms, further increasing your potential returns.

  6. Using as collateral: LSD tokens can also be used as collateral assets on lending and borrowing platforms, allowing you to receive additional income.

  7. Unstake your LSD tokens: if you wish to unstake your LSD tokens, you can do so by navigating through the "Unstake" section and put the amount you wish to unstake. The Gravedigger charges no withdrawal fees for unstaking your LSD tokens using the slow burn method (the unbonding time depends on the chain).

Fee Structure

The Gravedigger has a transparent fee structure, ensuring that users are aware of the costs associated with using the platform:

  • Deposit Fees: 0% (no fees for staking LSD tokens)

  • Performance Fees: 10% (charged on the generated interest each time your assets are auto-compounded)

  • Withdrawal Fees: 0% (no fees for unstaking your LSD tokens using the slow burn method)

Governance and Fee Distribution

The Gravedigger's protocol governance is conducted through the choosen NFT Collection's DAO. Voting power is determined by the number of NFTs held by each participant. 70% of the fees generated are allocated to Liquidity Providers (LPs), while 20% of the fees are directed to the NFT Collection's DAO for eligible holders, the remaining 10% is for the platform. Since the Gravedigger born on Terra, the platform doesn't take any percentage fee, so Skeleton Punks, the NFT Collection choosen for the governance for Terra, gets the whole 30%.

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