LP staking
Provide liquidity to the protocol's designated Balancer pool, take the BPT (Balancer Pool Token) receipt, stake the BPT in the protocol's LP staking contract, and earn FEE and RD rewards.
LPStaking earns two streams — FEE and RD. Withdrawing returns your BPT and settles both.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 protocol's market oracle 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 LP staking contract. The contract accrues two reward streams to you:
- FEE rewards: issued by 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 the global fee router, or one-off treasury top-ups). Your share is your stake / total staked.
Both streams use a standard reward-per-share index (formula in the developer reference). Stake more, earn more. Unstake any time, there's no lockup.
The RD share responds to LP depth
The RD stream's size is set the same way the Stability Pool's interest share is: a PI controller on LP utilization — the RD Balancer pool's liquidity (a TWAL from the MarketOracle) as a fraction of RD total supply. When LP depth is below its 8% target the router routes more of the interest to LP stakers; when it's above, it routes less. Bounded 10%–60%, with a 50% bias near target.
The full LP-vs-FEE split is in Fees.
Staking
Deposit your BPT (after approving it), withdraw part or all of it whenever you like — a withdrawal settles your pending FEE + RD in the same call — or claim rewards without changing your stake. There's no lockup, no tier, no kickback; it's a flat staking pool.
Developer reference: Earning.
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. Earlier LPs typically capture a larger share of the lifetime FEE emission than late entrants.
There's also the operational dependency: the protocol's market oracle 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 only | 7d / 30d / 60d 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.