❓FREQUENTLY ASKED QUESTIONS
1. What is an expansionary epoch?
An expansionary epoch is the amount of CRS that is printed by DIA in order to increase the total circulating supply.
2. What happens if I interact with the ARK in any way?
Any interaction with the ARK will reset both timers. That's 3 epochs to claim your CRS rewards, and 4 epochs to unstake your DIA.
3. Why is APR in ARK low?
Unlike previous algo projects, SYNERGY focuses on making the protocol strong, and maintaining it's stability in the long run. When APR is lower in the ARK than in the LPs, we aim to encourage users to add liquidity rather than staking single tokens. This will keep SYNERGY stable in the long run. However, it's important to note that the ARK’s APR will be good enough for stakers.
Best strategy to follow
Please note that the following is not financial advice. There are countless strategies, and the one you choose depends on your risk tolerance and short, medium and long-term goals.
The following is NOT FINANCIAL ADVICE. It is for education and entertainment purposes only.
There are countless strategies, and which one you choose depends on your risk tolerance and short, medium, and long-term goals.
Don’t forget to take profits along the way. Don’t get greedy!
If $CRS is OVER the peg:
Buy $CRS and pair it with $BUSD to provide liquidity, and stake your CRS-BUSD LP in the farm to earn $DIA rewards.
Take your $DIA rewards and stake them in the ARK to earn inflationary $CRS rewards.
Sell 50% of your earned $CRS for $BUSD, and compound 90% of it back into the CRS-BUSD LP. = The rest is pure BUSD profit!
If you want to grow your position overtime, use our AUTOCOMPOUNDER
If $CRS is UNDER the peg:
Buy $CRS
Use AUTO COMPOUNDER
Deposit to CRS BURNING VAULT
Our LMS and paper hands will bring the peg back soon!
1. APR is much higher in the ARK than in the farm for CRS-BUSD LP. Why would I not just invest everything there?
The farm APR is linear and prints 24/7, regardless of CRS's relation to the peg. ARK, on the other hand, prints only when CRS's TWAP is above 1. Therefore, it may not always be that an investor gets a higher return from the ARK than from the CRS-BUSD pool.
Terms and Mechanisms
1. What is an expansionary epoch?
An expansionary epoch is the amount of $CRS that is printed by $DIA in order to increase the total circulating supply.
To simplify the explanation with a hypothetical example, let’s say an epoch is 3 days long and there are $100 dollars in the circulating supply.
If the money printer grows the supply by 10% of the existing circulating supply each day, at the end of the 3 days you'd have 100*1.1*1.1*1.1 = $133.
Then, let’s say the emissions decrease to 5% per day.
You’d then have have $133 *1.05 *1.05 *1.05 = $153 at the end of this second epoch.
2. What is compounding in the context of SYNERGY?
Earning a return on gains you've already made from previous periods is what is commonly referred to as compounding.
For example, consider a constant 3% daily APR and constant price of CRS on an initial investment of $100.
After 24 hours it would grow to $103.
After 365 days without compounding: $1195.
After 365 days, compounding once daily: $4,848,272.
Core Values
1. I'm invested in the project for the long term, and I feel guilty taking profits. Am I still a team player if I move profits somewhere outside of the project?
Never put all your funds in one basket, even if it's $CRS. Always take gains along the way. The SYNERGY team views it as a success if, over time, everyone gets their initial investment back into their wallets and continues investing with the profits that come after that.
ARK
1. What happens if I interact with the ARK in any way?
Any interaction with the ARK will reset both timers. That's 4 epochs (24 hours) to withdraw your CRS rewards, and 6 epochs to unstake your DIA (36 hours).
2. Are the ARK rewards pro-rated by time? Eg if I stake three hours before the end of an epoch vs five hours before the end of an epoch, do I get different rewards?
No, it's determined by how much you have staked at the time of printing (i.e. the end of one epoch and start of the other). It doesn't matter if you stake 3 hours before or 30 seconds before the emissions occur.
3. If I remove my $DIA from ARK without first collecting my $CRS, will it be lost forever?
No, it will still be there to collect whenever you need.
FARM
1.What will happen when circulating supply = Total supply? Will emissions stop?
Yes. Once the max supply of $DIA (100K) is reached, emissions stop. This is going to be in a year from when the $DIA farms start. $DIA will always print $CRS in the ARK, though, as long as $CRS is above peg.
REWARDS
1. How can I figure out what my future $CRS rewards will be from the ARK?
Here is a simplified example for a non-debt phase: If you have 1 $DIA staked out of 10 total $DIA staked in ARK, you will get 10% of the total $CRS emissions. So, for this example we are assuming that there is a total circulating supply of 10,000 $CRS, the current expansion rate is for example at 4%, and therefore 400 $CRS will be emitted. You would get ((0.04 * 10000) * 0.8) * (1/10) = 32 $CRS.
2. How long will it take for DIA to pay itself off from $CRS rewards, based on current prices?
This will vary constantly as the APR in the DIA fluctuates, along with other variables such as the price of $CRS. For a quick estimation, however, you can do the following:
1) Take the total APR shown in the ARK, and divide that by 365 to get the daily APR. (In this example, we will say the daily APR is 5%.)
2) Multiply that daily APR by the current market price of the total DIA you have staked to see what your daily rewards are.(In this example, we have 5 DIA, each worth $500, for a total amount staked of $2500. Your daily return is $2500 * .05, which comes out to $125/day.)
3) Take your initial buy-in price for DIA and divide it by your daily rewards. If you bought these 5 DIA at a higher price of $700, for example, in the current market conditions you will recover your initial investment ($3500) in 3500/125 = 28 days.
3. Does a higher TVL mean a higher APR?
The more TVL in the pool, the less APR (there's more people getting the same piece of the pie), but the higher the price of the reward (the pie) the higher the APR (better quality of pie). In other words, although the same rewards are diluted across more investors, if those rewards have a higher dollar value because of the increase in TVL, then they can actually lead to a higher APR as well.
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