Caves (Pools)
(accessed via Staking > Caves (Pools))
Staking is similar to putting your money in a bank savings account, only with much higher returns.
When you stake cryptocurrency, you are depositing your tokens into one of the DEX’s smart contracts, and in exchange you receive reward tokens at a variable interest rate. Once earned you can harvest your rewards, which will then appear in your wallet. You may add or remove your staked tokens from the smart contract at any time.
NOTE: While staked in a smart contract your tokens will no longer appear in your wallet, but will be visible by connecting your wallet to the DEX.
How to Stake
Open the side menu and tap on Caves. Ensure your wallet is connected to the DEX (see Connecting Your Wallet).
Find the staking option you would like to invest in, and toggle it open via the chevron on the right side. Each option lists the token you will earn, the token you need to stake, and the APR of rewards you will receive.
Tap the + button.
Enter the amount of the token you would like to stake. Your wallet balance is listed on the right side of the plane. You can tap the Max button to stake it all.
Tap Confirm.
You will then be prompted by your wallet app to approve the transaction and the associated transaction fee (paid with Binance Smart Chain BNB).
Once approved, the transaction will be sent to the network for processing. Though this usually takes only about a minute, when the network is under high demand, transactions can take much longer to complete.
Once the transaction completes, the tokens will be removed from your wallet and will now be displayed as Staked on the DEX.
NOTE: When adding tokens to a cave you are already staked in, any available rewards will be harvested automatically as part of the transaction. There is no additional gas fee incurred for this action.
YouTube - How to stake your tokens?
How to Harvest
You can harvest your staking rewards at any time, though you must harvest the full amount.
Open the side menu and tap on Caves. Ensure your wallet is connected to the DEX (see Connecting Your Wallet).
Find the staking option containing the rewards you wish to harvest, and open it by tapping the chevron on the right side. Both the quantity of tokens and their value are displayed on the left.
Tap the Harvest button.
You will then be prompted by your wallet app to approve the transaction and the associated transaction fee (paid with Binance Smart Chain BNB).
Once approved, the transaction will be sent to the network for processing. Though this usually takes only about a minute, when the network is under high demand, transactions can take much longer.
When complete, the reward tokens will be removed from the smart contract and deposited in your wallet.
YouTube - How to harvest your earnings?
How to Unstake
You can remove all or part of your staked balance at any time, doing so will automatically harvest any outstanding rewards and send the total to your wallet.
Open the side menu and tap on Caves. Ensure your wallet is connected to the DEX (see Connecting Your Wallet).
Find the staking option you would like to unstake, and open it by tapping the chevron on the right side.
Tap the - button.
Enter the amount of the token you would like to unstake. Your total staked balance is listed on the right side of the pane. You can also tap the Max button if you intend to withdraw your full balance.
Tap Confirm.
You will then be prompted by your wallet app to approve the transaction and the associated transaction fee (paid with Binance Smart Chain BNB).
Once approved, the transaction will be sent to the network for processing. Though this usually takes only about a minute, when the network is under high demand, transactions can take much longer.
When complete, the staked tokens and all your rewards will be removed from the smart contract and deposited back in your wallet.
NOTE: When removing tokens from a cave you are already staked in, any available rewards will be harvested automatically as part of the transaction. There is no additional gas fee incurred for this action.
YouTube - How to unstake your staked tokens?
Features and Concepts
APR
APR stands for Annual Percentage Rate, and is the amount by which your principal would grow if you kept it invested for one year without any compounding.
APRs in caves are variable rates that constantly change based on the total amount of tokens staked to the pool, and the relative values of both your staked token and the reward token. APR is calculated with the below formula.
Compounding
Compounding refers to the process of reinvesting your rewards, this increases the amount of tokens you have staked continually, and therefore the value of the reward received. This can have a dramatic effect on your annual yields.
For Example: if you were to stake $1000 for one year in a cave with a 30% APR:
you'd receive $300 in rewards, without compounding.
you'd receive $349 in rewards, with daily compounding.
APY stands for Annual Percentage Yield and indicates our total expected yield at the end of one year, taking compounding into account. In the example above the APR in both cases is 30%, but the APYs are 30% and 34.9% respectively.
How frequently investments should be compounded is complicated on a DEX, by the need to pay transaction fees, and where the reward token is not the same as the staked token additional exchange fees. For smaller investments compounding too frequently can reduce the total annual reward.
Rewards
Rewards are tokens paid to investors at the completion of each block (approximately every 3 seconds), these rewards are similar to the interest received on conventional savings, but are instead paid for staking your tokens. The rewards may be more of the same token you have staked, or a completely different token.
The amount of reward you will receive is determined by the APR at the time of each reward distribution, and based on the value of your staked principal at that time.
To calculate the APR of the Caves staking rewards, we can use the following formula.
All rewards remain on the DEX, unstaked, until harvested.
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