LP staking

Provide liquidity to the protocol's designated Balancer pool, take the BPT (Balancer Pool Token) receipt, stake the BPT in LPStaking, and earn FEE and RD rewards.

What you're providing liquidity for

The protocol designates one Balancer pool as the canonical RD/USD liquidity venue. That pool is also what the MarketOracle reads to feed the controller. So LP'ing there is doing two jobs at once:

• Providing tradable depth on the RD market (helps the controller stay accurate).
• Earning the protocol's LP rewards.

The exact pool address (and what's paired with RD, typically a major stablecoin) is on Deployed addresses.

The deal

You stake your BPT in the LPStaking contract. The contract accrues two reward streams to you:

• FEE rewards: issued by LpIssuance, a per-second emission curve. The total amount is fixed at deployment; the curve tapers off over the program duration.
• RD rewards: sourced from direct RD transfers into the contract (a portion of borrow fees routed through GlobalFeeRouter, or one-off treasury top-ups). Your share is your stake / total staked.

Both streams use a standard reward-per-share index:

F_FEE_global = ∫ (FEE_stream_rate / total_staked) dt
F_RD_global  = (RD_inflows_per_share since last update)
my_pending_FEE = my_stake × (F_FEE_global − snapshot_FEE)
my_pending_RD  = my_stake × (F_RD_global  − snapshot_RD)

Stake more, earn more. Unstake any time, there's no lockup.

Entry points

• stake(amount): pulls BPT from your wallet, updates your snapshot. You must have approved the contract first.
• unstake(amount): returns BPT to you, settles your pending FEE + RD rewards in the same call.
• claimRewards(): settles pending FEE + RD without changing your stake.

There's no lockup, no tier, no kickback. It's a flat staking pool.

Risks

LP staking has two distinct risk surfaces:

• Impermanent loss on the Balancer pool. If RD's market price diverges meaningfully from its paired asset, you're holding less of the appreciating side than if you'd just held the tokens. This is a standard AMM risk; not specific to RAI Dollar.
• Reward stream taper. FEE emissions decay over time per LpIssuance. Earlier LPs typically capture a larger share of the lifetime FEE emission than late entrants.

There's also the operational dependency: the protocol's MarketOracle reads this same pool. If the pool is shallow or imbalanced, the oracle price can drift from real market, which affects the controller. As an LP, you have a small alignment-of-interest with keeping the pool healthy.

When LP staking pays best

• Early in the FEE emission curve. Same as any DeFi farming program: emission is highest at the start.
• When you can stay through the program. Unstaking and re-staking doesn't accelerate rewards; staying staked maximizes accrual.
• When the pool is shallow relative to its emission rate. Bigger share of constant emissions.

It pays worst when the pool is crowded with stakers chasing a small remaining emission tail, or when impermanent loss is eating more than the rewards.

Difference vs. the other earning paths

Path	What you stake	What you earn	Lockup
Stability Pool	RD	Branch collateral + FEE	None (but liquidation exposure)
FEE staking	FEE	RD + branch collateral	7d / 30d / 90d tiers
FLX staking	FLX	FEE (1-year linear stream)	None
LP staking	Balancer BPT	FEE + RD	None

All four are independent. The protocol doesn't double-count: a token can only be in one role at a time.