Platform Yield

The Checks Platform introduces an innovative staking feature known as Platform Yield, powered exclusively by the CHECK token. Unlike traditional staking pools, users mint Yield Checks by locking CHECK tokens into this special NFT Check type.

Overview

Each Yield Check contributes to the user's staking tier level, with rewards scaled proportionally to the total amount of CHECK tokens locked. Through this model, users earn a share of rewards derived from platform fees, marketplace royalties, and DeFi yield revenue.

This approach provides a more dynamic and rewarding experience for users compared to traditional staking, as it aligns their earnings directly with their level of participation in the platform.

Reward Structure

The higher the staking tier, the greater the holder's share of:

• Fee Distribution: A portion of all platform fees and marketplace royalties generated across the protocol is distributed to Yield Check holders.

• Farming & Lending Yields: Interest or farming rewards accrued from assets locked in NFT Checks—such as funds held in payment, vesting, or escrow contracts that have not yet been redeemed—are redistributed to Yield Check holders.

Unique Benefits

Because Yield Checks are structured as NFTs, they can be:

1. Freely traded on NFT marketplaces - meaning you can place your staking position for sale without having to unstake and lose yield.

2. Used as collateral in DeFi protocols that support NFT-based lending, allowing you to borrow against your locked CHECK tokens while still receiving yield.

This design unlocks liquidity for stakers by allowing them to sell their entire position as an NFT on the open market. This flexibility enables users to realize gains or switch strategies without having to wait through a traditional unbonding period.

How It Works

1. Lock CHECK: Users lock CHECK tokens to mint a Yield Check with an embedded token-bound account (ERC-6551). The locked tokens establish the user's staked position. Yield Checks have a tier-dependent maturity period (1-5 weeks) before earning rewards. Higher tiers enjoy shorter maturity periods.

2. Tier Assignment: A user's tier level is determined by their total staked CHECK tokens. Higher tiers receive larger reward shares and additional perks. Tiers 3-6 qualify for Enhanced Staking Benefits like NFT distributions and special token allocations. The top tiers 5-6 (President and Chairman) enjoy VIP Executive Benefits including zero platform fees and other special rewards.

3. Yield Distribution: Assets held in NFT Checks generate yield through DeFi strategies employed by the platform (Aave, Compound, etc.). A portion of this yield, along with platform fees and marketplace royalties, is distributed to Yield Check holders proportionally, based on their tier and stake amount after their maturity period has elapsed.

4. Ownership Flexibility: Yield Checks can be sold, transferred, or used as collateral on marketplaces like Paymart, OpenSea, or Rarible. Early unlocking of collateral incurs a small penalty fee. Some check types, like Vesting Checks, prohibit early unlocking to maintain financial integrity.

5. Reward Claims: Users can claim their tracked rewards through the Portfolio area, receiving distributions in stablecoins, native chain assets, or both. This diversified reward structure offers an advantage over traditional staking systems by providing rewards in established assets rather than solely in the platform's native token.

Benefits to the Protocol

• Deep Liquidity & Stickiness: CHECK tokens locked in Yield Checks remain out of circulation, boosting overall token stability and reducing sell pressure.

• Enhanced Utility: As more NFT Checks (such as payment, vesting, and escrow checks) hold funds, the protocol generates more yield. Yield Check stakers help secure and govern the protocol, and in return, they capture these additional earnings.

• Secondary Market Dynamism: Yield Checks create a robust secondary market. Users seeking immediate liquidity can sell their locked stakes, while buyers can acquire an established yield position without having to lock tokens themselves.

• Collateralization of Staked Positions: By treating staked CHECK tokens as transferable NFTs, the protocol fosters new composability. Projects can accept these Yield Checks as collateral for loans, knowing they represent a tangible stream of income from the protocol.

Example Scenario

• Alice mints her first Yield Check containing 5,000,000 CHECK tokens and advances to Tier 3 Gold status. Her Yield Check is subject to a 4-week maturity period, reflecting her tier level benefits.

• Over the next several months, the platform collects fees, marketplace royalties, and earns interest on all unredeemed NFT Checks.

• Once the maturity period ends, Alice's Yield Check starts earning a proportional share of the platform's collected fees, marketplace royalties, and yields. If she needs liquidity, she can sell her Yield Check—which includes her locked stake and future yield rights—on a marketplace.

• Bob purchases it, effectively inheriting Alice's staked position and starts earning yield for himself—no unbonding or re-staking needed.

This model elevates staking from a simple lock-up mechanism to a flexible, tradable, and even collateralizable instrument. By aligning all locked CHECK tokens with protocol-wide yield flows, it rewards participants for supporting the ecosystem, while enabling them to exit or leverage their stake at any time through secondary markets.