When Myōbu first launched, its vision was to revolutionize the ERC-20 scene with ground-breaking reflection tokenomics. To create a more equitable environment, we have replaced reflections with an even more powerful tool from the DeFi space: staking. There is one important difference to traditional staking protocols. We reward in $ETH, not in our native $MYOBU token.
By Staking $MYOBU, Holders Can Earn Passive Income In $ETH
The benefits of rewarding $ETH, rather than $MYOBU, is to guarantee lack of inflation and to prevent sell pressure when stakers claim their rewards. In fact, claimed rewards can be used to buy more $MYOBU, compounding your rewards and increasing the stable price point. Here is everything you need to know about staking with us, from time frames to rewards, LP pools, and future use cases.
Staking: Your Options And How They Work
Our staking contract was written to allow you to stake according to your risk tolerance. Staking $MYOBU is taxless on our dApp. Do not manually add liquidity through UniSwap. This will be taxed. To add and stake LP, do so through our staking dApp directly. This will allow tax-free LP add/removes for staking. While staking inherently has some risks, the rewards you can earn tend to outweigh them. We will have two different types of staking available at launch:
- Locked Single Asset Staking
- LP (or liquidity-provider) Staking
Our first option is locked single asset staking. By choosing to lock $MYOBU tokens into the staking pool for a set amount of time, you can earn $ETH rewards. The minimum time lock we allow is one week, which would earn you the standard rate. Staking your Myōbu for a maximum of 52 weeks will earn 3 times the rewards.
Second, we have LP staking. Myōbu’s LP staking pool will allow community members with both $MYOBU and our chosen paired tokens (e.g., $WETH, $USDC) to earn substantial rewards. While engaging in LP staking carries some downsides — such as impermanent loss — the larger APY (annual percentage yield) can offset this on a risk-adjusted basis.
Staking in cryptocurrencies has a unique risk-reward calculation. Please do your own research about staking and ask our team any questions before you decide to stake. The Myōbu team members are not financial advisors and we recommend that you discuss with a professional if staking is right for you.
More About Time Locks, Weight Boosts, And $ETH Rewards
The locked staking pool features a scaling reward system, with a 1x to 3x multiplier based on how long you stake, ranging from 1 week to 1 year (e.g., staking for 6 months will result in a 2x multiplier). On top of staking tokens, you can utilize a Myōbu NFT (mintable in the future) to further boost earnings potential. For example, if you have two NFTs that are each assigned a 10% boost, you can stake them together for 20% more rewards — if they are staked alongside your tokens.
Please note that staking your NFTs does not result in a global rewards boost. NFT boosts apply only to the pool they are staked in, e.g., NFTs staked in the LP pool would not provide a bonus to the locked pool, nor the other way around.
The $ETH rewards are funded by the tax income from buy and sell transactions of the token. The more trading volume we have, the higher our APY for the staking contract. Considering our marketing plans, upcoming games, CEX listings, and cross-chain bridging, we expect APYs to remain attractive.
Let’s look at two examples that show how $ETH rewards could function:
Example A: Staking 1 billion tokens for one week
Assumptions: $200k volume, 5% buy and 9% sell tax, 60% of volume are buys, 10% of all tokens staked by the community for a week, and 50% of taxes go toward staking rewards.
Reward after 1 month: $2,009 in $ETH
Example B: Staking 1 billion tokens for one year
Assumptions: same as above
Reward after 1 month: $5,908 in $ETH
Actual rewards earned may be more or less than these examples. Two of the biggest influences on APY are volume traded per day and total number of tokens staked. E.g., if more people stake more $MYOBU, then the $ETH rewards are spread thinner across each person’s holding. Note that these estimates do not include the period of time where Myōbu is guaranteeing a minimum APY return (see below). Also, these are averages between both staking pools. Based on the same assumptions, monthly rewards may be much higher during this “augmented” staking period.
Initial “Augmented” Staking Launch
To initiate staking, Myōbu is augmenting the rewards upfront to ensure a minimum guaranteed APY at a certain level. This is a special limited-time bonus to incentivize and reward the early adopters of staking in our community. First, staking will be funded by the buy and sell taxes, initially with 50% of that going to the staking APY. Second, while we wait for Project Hikari and the other products, volume and thus taxes can be highly variable, so Myōbu will ensure that the minimum total APY will be 300% for the first day of staking, 150% for the first week of staking, and 100% for the first month.
This augmented staking is restricted to $300k worth of tokens being staked, with APYs adjusted accordingly. The augmented APY may continue longer depending on interest. Note, these are minimum APY, so real APY may be higher, especially due to recent higher trading volumes. To be clear, all tokens, no matter how many are staked, will receive the APY from the 50% of taxes which could exceed the minimums set by Myōbu staking augmentation.
The Future Of Myōbu Staking
Every thriving DeFi ecosystem strives to develop new ways for its community to earn and grow. Myōbu is committed to providing new ways to earn, like increasing the number of possible LP pairs, while also adding new features and utility where possible. One of the future functionalities the team has been exploring is a way for a certain staking amount to earn you exclusive access to new NFTs or in-game features.
While features like this are just in the planning phase, we will be sure to update the community when we know more. Some of this information may be a lot to digest, but we are here to help.
How Staking Helps Myōbu
Staking will provide Myōbu with the price stability and liquidity needed to build our leading GameFi ecosystem. This means the community can hold $MYOBU tokens with confidence as the Myōbu metaverse continues to be developed, while also helping us to attract some of the top talents in game development: artists, developers, and more.
We are dedicated to staying transparent with the community about our planned games by providing updates on things like artwork and game logic. Project Hikari gameplay is already being tested and the strategy and game balance are being refined. Please continue to follow our Twitter feed to see the new art coming out regularly.
With the additional stability from staking, development can ramp up even further, bringing us closer to our goal of being the future of GameFi. We hope that you’re as excited as we are to launch the next stage of the Myōbu experience.
If you have any questions, please reach out through our official channels.