So all in all you will receive the following rewards from staking :ġ) A weekly percentage of the contracts supply of Rare paid in RareĢ) A weekly percentage of the contracts supply of Staker fees paid in xDaiģ) A constant percentage of the 0.25% trading fees on Honeyswap paid in both Rare & xDai. This share is also paid in the same percentage of your stake against the pool size allowing you to earn that percentage of the total fee balance in the app at the time of claim. In addition to this, you will also earn a share of the staking fees acquired through our app at the end of your stake. The minimum term is an estimated 7 days or 1 week (every 119,000 blocks to be precise). To qualify for your share our app requires you to lock up the special tokens awarded to you from Honeyswap also known as “LP Tokens” over some time or “Term” as we call it. This weekly amount of rare that is available to claim each week is known as a “Rare Dividend”.
#Rarify spot plus
The reward percentage is calculated at claim time and determined by the size of your current share of liquidity pooled relative to the total current pool size plus any liquidity bonuses you may have active. Staking RewardsĮvery day, one new Rare Coin is sent to the Stakers App where active Stakers can claim their share of RARE. Of course, you could leave it there, but you would be missing out on your weekly share of Rare rewarded exclusively to the LP providers staking in our app. After doing this you will start to earn your proportionate share of the 0.25% trading fees to the total supply of liquidity supplied to the pool. Now, what you are actually staking in our app is not rare/xdai but the tokens Honeyswap rewards you with that represent how much liquidity you supplied to the Honeyswap rare/xdai pool. When you do this, Honeyswap rewards you Tokens that represent your share of the pool. In the case of rare staking, to earn rewards in the app, you are required to lend an equal supply of Rare to xDai in terms of value which is then added to the Rare/xDai pool on Honeyswap. Now before we get to the rewards, now that you know a bit more about what liquidity providers are, let’s cover exactly what you need to provide to earn rewards in our Rare Staker app. In fact, even pools on honeyswap that are quite exposed to impermanent loss can be profitable thanks to the trading fees & in our case additional staking rewards and staking fees! Well, impermanent loss can still be counteracted by trading fees & additional crypto payouts. So why do liquidity providers still provide liquidity if they’re exposed to potential losses? In this case, there’s a smaller risk of impermanent loss for liquidity providers (LPs). Stablecoins or different wrapped versions of a coin, for example, will stay in a relatively contained price range.
Pools that contain assets that remain in a relatively small price range will be less exposed to impermanent loss.
In this case, the loss means less dollar value at the time of withdrawal than at the time of deposit. The bigger this change is, the more you are exposed to impermanent loss. What this means is when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. You may have heard the term “Impermanent loss”. Of course, there are risks you should know before staking. This also appeals to the savvy crypto investors who just want to lock in and earn while they sleep. Someone might want to do this as a more casual approach to earning with their assets without needing to manually trade the price every week. We call these people who loan or offer their assets up “Liquidity Providers” Or “LPs” for short. That reward can be in the form of another asset, the underlying asset, or a share of fees perhaps. “Staking” is a term used by the DeFi (Decentralized Finance) community to describe locking one or more of your crypto assets up for some time to earn a reward for you lending it out.
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