[Proposal] Liquid Staking for $ME — Instant Swap to SOL or Any Token

Product Improvement Impact Program
1

Abstract
Staking $ME locks your tokens until a fixed redemption date and boosts your activity score on Magic Eden for greater reward distribution. The downside is you cannot access your $ME until that date. This proposal adds a Liquid Staking Swap feature where you can temporarily swap your staked $ME for SOL or other tokens at a small discount, then swap back before redemption to keep your staking position. If you fail to swap back in time, the staked $ME is forfeited.

Motivation
Many users want to stake $ME to boost their rewards multiplier but also want some flexibility if they need liquidity before their redemption date. Right now, the only option is to wait, which can be frustrating in urgent situations. Liquid Staking Swap gives stakers a way to unlock temporary liquidity without losing their staking multiplier or having to sell $ME permanently.

How it Works

  1. Stake $ME and choose your redemption date as usual.

  2. If you need liquidity before then, click the Swap Early button in the staking dashboard.

  3. Receive SOL or another supported token instantly from a liquidity pool at a small haircut (for example 2 to 5 percent).

  4. Before your redemption date, swap back the equivalent $ME into your staked position.

  5. If you do not swap back in time, your staked $ME is forfeited to the pool.

Why This Benefits Everyone

  • Keep your staking multiplier while getting short term liquidity

  • More users encouraged to stake since they are not completely locked out of their funds

  • Haircut fees support liquidity providers and ecosystem rewards

  • Reduces pressure to sell $ME in secondary markets just to raise short term funds

Risks and Safeguards

  • Forgetting to swap back is mitigated by countdown timers, reminders and alerts

  • Liquidity pool protection through dynamic haircut fees

  • Smart contract complexity handled with independent audits before launch

Success Metrics

  • 15 to 20 percent increase in total staked $ME within 3 months

  • At least 10 percent of stakers using the swap function

  • Haircut fee revenue covers liquidity incentives

Let me know any other concerns and let’s discuss it.

1 Like
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Additionally this potentially helps people who lost their wallet to unstake ahead of time and send away funds to a safe wallet if they do multiple transactions all at once.

Honestly I think that with choice of flexibility, we could see a rise in max stakers just because they know if all goes to shit, they could atleast unstake something from the rainy day fund.

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Funny I have a similar trial proposal to put forward but my thoughts was that lenders would gain the borrowers staking power equivalent to whatever was lent out plus APY of course until the loan is paid once paid the borrower would regain their staking power back or if defaulted when the staked $ME is off lockdown would go to the lender. That way people can’t abuse the system by borrowing against their stake and then double dipping for higher staking power and not everyone is going to want to borrow and loose their SP.

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Interesting that could definitely be something to consider in a p2p lending borrowing environment, but depends on the approach ME team feels like taking, I was hoping more of a liquidity pool owned/operated by the foundation/market makers.

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good way to open up liq for $ME stakers and a way to increase the amount staked especially if they dont pay back on the loan.

1 Like