Impact Staking: Pioneering a New Era of “Stake for Good” in Decentralized Finance #RWI

retreeb
3 min readApr 2, 2024

Retreeb introduces a groundbreaking solution for staking providers at the heart of decentralized finance (DeFi) investments, leading the charge in attracting investors seeking impactful DeFi solutions.

What is Impact Staking?

Impact Staking is a virtuous evolution of traditional staking, inspired by Retreeb’s innovative redistributive model for payment flows. Beyond being a mere technological advancement, it represents a shift towards the new Retreeb’s concept of “Staking For Good,” empowering staking products without compromising returns.

This model enables investors to choose providers who commit to diverting a portion of their profits to support charitable or environmental projects.

Retreeb, leveraging community input through its dedicated Dapp (Impact Launchpad), ensures transparency and collective engagement in project selection:

Impact Launchpad — Homepage

How does Impact Staking works?

Impact Staking seamlessly integrates with traditional staking mechanisms without the need for technical modifications or additional audits, introducing a unique financial return mechanism:

The iAPR

The iPAR combines the traditional APR with a “Giveback” component for social or environmental impact.

The iAPR formula is simple: iAPR = % APR (Rewards) + % Giveback (Impact)

Impact Staking scheme example

The iAPR combines the percentage APR designated for rewards with the percentage Giveback dedicated to impact. Although the standard APR for investors remains consistent, staking providers pledge to allocate a Giveback of between 3% and 5% of the regular APR, effectively creating a tangible impact.

Then, 80% of the Giveback is allocated to financing selected projects as selected by the partner and its community., with the remaining 20% covering Retreeb’s operational costs, including project sourcing, review, selection, and impact reporting.

The Advantages of Embracing Impact Staking

Impact Staking marks a significant shift in decentralized finance, aligning with the growing Impact DeFi movement. It i an opportunity for providers to meet the impact criteria of both institutional and private investors, thereby attracting more investments and expanding Total Value Locked (TVL).

Additionally, it enhancs the reputation of staking providers as pioneers of “WEB3 for Good,” distinguishing them from the traditional DeFi landscape.

*These are random numbers, it is simply a simulation of the iAPR integration on a provider’s platform.

Towards a More Virtuous Financial Future

Retreeb is not just proposing a new model; we’re setting a new standard for how the finance industry can contribute positively to our world. As we launch our Impact DeFi initiatives, we invite you to join us in this journey towards creating a more sustainable and equitable future.

Discover more about how you can be part of this transformative movement with Retreeb’s Impact DeFi here : www.retreeb.Io

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