Staking & Rewards
Staking in the JamFi Ecosystem
Staking in JamFi is a central mechanism that aligns users with the protocol and supports long-term stability. By locking $JAMI or liquidity tokens such as jamiUSDC and jamiUSDT, participants provide security to the ecosystem while earning passive rewards. Unlike simple farming models, staking here is not an external add-on but an integrated part of JamFi’s architecture, making it a cornerstone of the protocol’s growth strategy.
At the economic level, staking ensures that value generated in the protocol flows back to committed participants. Rewards are fueled by lending fees, liquidation income, and treasury operations, which are shared with stakers. This design not only incentivizes participation but also embeds staking into JamFi’s sustainability model. The more activity the platform generates, the stronger the staking yield, tying user rewards directly to ecosystem performance.
In addition to yield, stakers enjoy a range of privileges that extend across the JamFi ecosystem. Active stakers receive boosted APY on lending markets, reduced transaction fees, priority governance rights, and exclusive access to institutional-grade liquidity pools. Moreover, JamFi integrates staking with its card program: users who lock $JAMI and use JamFi’s virtual or physical cards unlock extra bonuses such as higher cashback rates, lower FX fees, and premium card tiers. This creates a bridge between on-chain participation and real-world financial benefits, rewarding those who actively support the ecosystem both digitally and in everyday spending.
Staking Models
JamFi offers two primary staking models:
$JAMI Token
Users can lock $JAMI tokens for flexible or fixed terms. Flexible staking allows withdrawals at any time with variable yield, while fixed-term staking provides higher rewards in exchange for longer lock-up periods. Rewards are distributed in $JAMI and may include fee-sharing from protocol revenues.
Liquidity Token
Liquidity providers who hold jamiUSDC or jamiUSDT can stake their tokens to earn additional yield on top of lending interest. This dual-income model incentivizes users to both supply liquidity and participate in governance. By staking liquidity tokens, depositors support the long-term stability of lending pools, while receiving extra rewards from the protocol’s treasur
Reward Distribution
Rewards for JamFi stakers are designed to reflect the overall performance of the protocol and to ensure that those who secure the ecosystem also share in its success. The largest source of revenue comes from the interest margin generated in lending markets: borrowers pay higher rates than depositors receive, and part of this spread is directed into the staking pool. This ensures that as lending activity grows, so too do staking rewards.
In addition, stakers benefit from several secondary streams. A portion of liquidation fees is redistributed to staking participants, creating a direct link between system stability and user rewards. Service charges collected on cross-border payments, card operations, and premium features are also allocated to the staking pool. Finally, treasury operations such as $JAMI buybacks add another layer of value capture, allowing long-term token appreciation to reinforce the staking yield.
Rewards accrue continuously and are distributed proportionally to each staker’s share in the pool. To achieve fairness and efficiency, JamFi uses an index-based accounting model similar to its lending markets. Each staker’s balance is scaled by a global reward index that grows over time. As the index increases, user rewards accumulate automatically without the need for manual updates. This model ensures precise and gas-efficient reward calculations even with a large and growing user base.
For long-term participants, staking creates a compounding effect. The combination of lending margins, liquidation income, protocol service fees, and treasury operations means that staking yields are not tied to a single revenue source but instead reflect the health of the entire ecosystem. This makes JamFi staking both a source of predictable passive income and a direct indicator of protocol performance.
Governance and Utility
Staking is directly tied to governance. The more $JAMI a user stakes, the greater their voting power in the DAO. This ensures that governance decisions are made by long-term aligned participants who have committed capital to the protocol. Voting rights extend to all key parameters: interest rate curves, LTV ratios, collateral listings, fee structures, and treasury allocations.
Additionally, stakers enjoy utility benefits across the ecosystem. These include boosted yields in lending pools, reduced transaction fees, and preferential access to premium products such as JamFi cards with higher cashback tiers. By staking, users unlock a holistic package of financial advantages that extend beyond passive rewards.
Risks and Safeguards
While staking is designed to be secure, it carries inherent risks. In extreme scenarios, such as severe under-collateralization or unexpected liquidity crises, part of the staking pool may be used as a backstop to protect lenders. This mechanism ensures the solvency of the system, similar to how leading DeFi protocols implement Safety Modules.
To mitigate risk, JamFi employs strict monitoring and transparent governance. Parameters such as maximum slashing percentage, treasury coverage, and emergency withdrawal options are determined by DAO and enforced by smart contracts. This creates a balanced system where users can earn rewards with clear visibility of potential risks.
Technical Implementation
The staking contracts are built on Ethereum L2 for efficiency and low transaction costs. Rewards are tracked via a reward index, ensuring precise and scalable accounting.
uint256 public rewardIndex;
mapping(address => uint256) public userIndex;
mapping(address => uint256) public stakedBalance;
mapping(address => uint256) public accruedRewards;
function updateRewards(address user) internal {
uint256 delta = rewardIndex - userIndex[user];
if (delta > 0) {
accruedRewards[user] += stakedBalance[user] * delta / 1e18;
userIndex[user] = rewardIndex;
}
}This model ensures that rewards accumulate automatically for each staker as the global reward index grows. When users claim, their accrued balance is transferred without recalculating all past events.
Future of Staking in JamFi
Staking in JamFi is designed as an evolving mechanism that grows together with the protocol. In its current form, it provides users with yield, governance rights, and ecosystem privileges. But over time it will expand into a multi-layered system that goes beyond traditional DeFi staking. The goal is to make staking not only a source of rewards, but also a fundamental part of JamFi’s security and liquidity design.
One of the key directions is the introduction of liquid staking, where locked $JAMI can be represented by transferable tokens that remain usable in DeFi strategies while continuing to earn rewards. Another focus is the integration of insurance functions, where staked assets can serve as a safety buffer to protect lending markets in extreme scenarios. These features add resilience and make staking directly relevant to the protocol’s stability rather than being a passive product.
In the longer term, JamFi will bring staking into its multi-chain framework, allowing participants to commit assets on one chain while receiving unified benefits across all supported networks. This transforms staking from a single-feature tool into a comprehensive system that powers governance, underpins liquidity, and extends protocol security — ultimately turning it into one of the pillars of the JamFi ecosystem.
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