Myōbu Staking: FAQ
We have recently released our staking contract for our users. Rewarding the Myōbu community by allowing it to earn passive income in $ETH is unique in Decentralized Finance (DeFi). Read more about the reasons here: Myōbu Introduces Staking
In this FAQ you find essential questions and answers about our staking contract.
What is staking?
Staking involves “locking up” a portion of your tokens for a period of time in order to help increase price stability and provide liquidity for Myōbu. This improves the Myōbu ecosystem and helps lay a solid foundation for GameFi and Metaverse elements. During the staking lock period, the staker is unable to sell or swap their tokens. In exchange for this service, the staker receives rewards proportionate to the number of tokens and length of time that they have staked.
How is Myōbu staking different from staking with other tokens?
Myōbu provides staking rewards in $ETH. Stakers can claim their rewards at any time and have an option to use the $ETH to buy and stake more $MYOBU. Myōbu staking is very flexible, allowing the staker to determine their own lock time and the number of tokens that they desire to stake.
Why $ETH rewards instead of token rewards?
Rewarding in the native token creates selling pressure (people selling $MYOBU and lowering the price) from people wanting to cash out their rewards. With $ETH rewards, people will be able to claim their $ETH without creating selling pressure for $MYOBU, or they can reinvest from our UI with a zapping/reinvest function, creating buys for $MYOBU and increasing the price.
What is the difference between locked single asset staking and LP (or liquidity-provider) staking?
By choosing locked single asset staking, users lock their $MYOBU tokens for a set amount of time in order to earn $ETH rewards. The minimum time lock is one week, which would earn you the standard rate. Staking your $MYOBU for a maximum of 52 weeks will earn 3 times the rewards.
LP staking allows users with both $MYOBU and our chosen paired tokens (e.g., $WETH, $USDC) to earn substantial rewards, higher than locked single asset staking. 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.
What wallet apps work with staking?
The Myōbu dApp (decentralized application), which facilitates staking through a user interface, has been successfully tested with MetaMask, Coinbase Wallet app, and Trust Wallet. Other wallet apps that can interface with dApps, Wallet Connect, or similar web3 standard protocols may also be able to utilize the Myōbu staking user interface. More advanced crypto enthusiasts can interact with the contract directly if desired.
Can I keep my $MYOBU on Hotbit and stake?
No, $MYOBU on Hotbit or other centralized exchanges cannot be staked. The $MYOBU token must be transferred from the centralized exchanges to independent wallets, like MetaMask or Coinbase Wallet app.
What does “time-locked” mean?
When you stake with $MYOBU, you choose how long your tokens are locked. The longer you lock or “stake” your tokens, the larger your rewards. While your tokens are staked, they cannot be unlocked, and you will not be able to sell, swap, or transfer them. During the locked period, your tokens will not be present in your wallet, but you can see them via the user interface or on the staking contract itself.
What if I want to unlock early?
You cannot unlock early. However, you decide how long they are locked when you initiate staking.
Can I stake to multiple pools from a single wallet?
Yes. Each wallet can stake tokens in as many or few of the pools that are available. For example, from one wallet, you can stake both individual $MYOBU tokens as well as $MYOBU-$ETH pairs in the liquidity pool.
Can I stake for multiple timelocks from a single wallet?
No, each pool in each wallet can only have a single timelock. For example, you cannot stake 20M $MYOBU for 1 week and 20M $MYOBU for 1 year in the same wallet. However, each pool has its own timelock for a given wallet. So, for example, you could stake 20M $MYOBU for 1 week and $MYOBU-$ETH LP for 1 year from the same wallet.
Can I add more $MYOBU to a pool that is currently staked?
Yes, however, the lock time needs to be the same or longer as the current lock time.
Why should we stake LP via the Myōbu staking dApp instead of on Uniswap?
Staking LP with the Myōbu dApp is tax-free, unlike on Uniswap.
Is the APY shown on the user interface a guaranteed amount?
No, APY is dependent on many things, particularly the trading volume, the number of total tokens staked, and the length of time of staking. APY is estimated to provide some guidance, but it is not guaranteed.
How often can I claim $ETH rewards and how often are my rewards updated?
Rewards are updated live and $ETH can be claimed at any time (before or after your staking lock period). $ETH rewards can be claimed multiple times during staking, but there is a gas fee for claiming the rewards. When you claim your rewards, you have the choice to take the $ETH directly into your wallet, or you may reinvest and increase your staking holdings to earn even more $ETH.
What happens when the time lock expires? If I don’t re-stake will I still earn rewards?
When your lock time expires, you may extend or relock your tokens, or simply withdraw them back to your wallet. When you withdraw, any remaining $ETH rewards are automatically given to you as well. You will still earn rewards even after your lock time expires, however, unless you extend or relock your tokens, rewards will stop accumulating after the next time you interact with the staking contract. For example, after two weeks, the tokens that you staked for 1 week initially will still be earning rewards, but as soon as you claim your rewards, no new rewards will continue to accumulate. To continue getting rewards at that point, you need to extend or relock your tokens.
Are there limits or caps on rewards?
Are there fees or taxes for staking?
The only fees are gas fees. There are no taxes taken from staking.
How is staking funded?
Staking is funded in part by the buy and sell taxes.
If you have any questions, please reach out through our official channels.