MUNCH is a project designed to reimagine how people control their assets. By giving users control over dynamic rewards and donations, we’re creating a customizable payment system that can be instantly reactive and better distribute portions of assets we are willing to transact.
As part of a major development on this concept, the MUNCH team has created a farm where you can stake assets, either through liquidity pool token staking or single asset staking, and control how you give and get back with MUNCH.
Staking enables MUNCH to increase security, reduce volatility, and enables token holders to earn rewards and donate to charity at the same time.
First, what is staking?
Staking is the process of locking up a number of tokens for a specified period of time in order to contribute to the security of a blockchain project and receive rewards.
MUNCH offers Single-Asset-Staking as well as Liquidity Pool staking. When staking, part of the rewards will be sent directly to charity, with the percentage sent decided by the holder — with a default of 10% of rewards being diverted to charity.
In liquidity pool staking, users add liquidity to a pool such as Uniswap, depositing two tokens — ETH and MUNCH . In return, they receive LP tokens.
What are LP tokens?
LP tokens are tokens received when you provide liquidity on Uniswap or Pancakeswap. Providing liquidity helps a token be less volatile. If you provide liquidity for MUNCH directly on Uniswap or Pancakeswap, you will be taxed on the MUNCH token transfers. However, our farming interface allows you to provide liquidity without being taxed, then to send your LP tokens to receive MUNCH tokens as rewards.
Staking rewards, time periods, minimums, and maximums
Liquidity Pool Staking
We are funding 1T tokens for farming, with a reward rate across chains of about 4.6B tokens a day. There is a minimum staking duration of one week and rewards accumulate on every block and can be claimed at any time after that.
The total rewards available currently amount to $400K USD (Time of pricing 23:00 CET 29/10/2021)
Single Asset Staking
What is Single Asset Staking?
Earn MUNCH tokens by sending and locking MUNCH tokens for a predefined duration.
You can use the MUNCH interface to decide how much you are willing to lock and for how long, and see the rewards you are receiving. To allow more holders to benefit from staking, rewards are only distributed during the lock period. To continue earning rewards, you need to renew your staking.
There are 3 different duration options: 45 days, 90 days, 180 days
The total max stake is defined as the number of tokens that can be stakes until all reward tokens from the rewards pool have been allocated to stakers.
45-day staking:
- Min Stake: 1B
- Max Stake: 250B
- Staking pool size: 3.3T tokens
- APY: 24%
- Rewards after 45 days: 2%
Please be aware that 45-day staking is only available on the BSC chain as ETH gas fees would render it non-viable.
90-day staking:
- Min: 15B
- Max: 150B
- Staking pool size: 3.3T tokens
- APY: 36%
- Rewards after 90 days: 9%
180-day staking:
- Min 10B
- Max: 150B
- Staking pool size: 2T tokens
- APY: 49%
- Rewards after 180 days: 24%
When staking, part of the rewards will be sent directly to charity, with the percentage sent decided by the holder — with a default of 10% of rewards being diverted to charity.
When the lock period ends for single asset staking, rewards stop accumulating. You need to go and manually withdraw your funds, which will also send you your rewards
You can stake your assets here.
Ask any questions you may have in our Telegram channel, here or consult our FAQs below.
FAQ
What is farming?
Yield farming, sometimes known as ‘liquidity mining’, is a way to generate rewards with cryptocurrency holdings by ‘locking up’ cryptocurrencies for a set period of time in order to earn rewards (effectively interest) on the tokens.
What is staking?
Yield farming can be paralleled with staking. However, staking works with users called liquidity providers (LP) that add funds to liquidity pools.
What type of staking does MUNCH offer?
We offer Single-Asset-Staking as well as Liquidity Pool staking.
Does staking affect the charitable donation model of MUNCH?
When staking, part of the rewards will be sent directly to charity, with the percentage sent decided by the holder — with a minimum of 10% of rewards being diverted to charity.
What is a liquidity pool?
A liquidity pool is a smart contract that contains funds. In return for providing liquidity to the pool, providers get rewards generated from fees generated by the underlying DeFi platform.
Does staking work cross-chain?
Yes, staking is offered on both chains
Can I choose specific causes to support?
No, for now the cause receiving the funds is the current community-chosen one at the time you claim your rewards
How can I change the amount to donate?
The percentage of your rewards going to charity can be changed at any time. This results in the withdrawal of the pending rewards, with the previously set percentage to be applied to them. The new percentage will apply to rewards accumulated from there.
Will I still receive redistribution on my tokens?
You will still receive redistribution for single asset staking.
However, with liquidity pool staking you will no longer receive the MUNCH distribution tokens In this case, the tokens are sent to Uniswap and it is not possible for these tokens to receive the distribution.
What happens at the end of the lock period?
When the lock period ends for single asset staking, rewards stop accumulating. You need to go and manually withdraw your funds, which will also send you your rewards
How much can I stake?
The amount available for staking varies on the type of staking and the staking period you choose. These amounts vary between a maximum of 1bn and 250bn MUNCH tokens.
How long can I stake for?
Munch offers 3 different duration options: 45 days, 90 days, and 180 days
Why should I stake?
The benefits of staking for the user are the higher rewards offered to stake assets. These rewards are designed to be higher than the normal reflection amounts offered by MUNCH.
Are there risks involved with farming or staking?
Staking is a way to earn higher rewards with MUNCH, in return for adding stability to the project. Staking does bring with it some risks, and it also ‘locks’ tokens for certain amounts of time, meaning you surrender some control of when you can sell, depending on the staking period you choose.
When adding liquidity to pools, there is a risk of ‘impermanent loss’. In the case of an ETH/MUNCH pool, the value of ETH has the potential to appreciate in value.
In this case, the automated market maker will adjust the ratio between the assets so the value of both remains constant. This is where impermanent loss can occur: with the disconnect between the value and the number of tokens deposited. If the asset rises in value steeply, it may have been more profitable to simply hold the token.
Impermanent loss can become permanent loss if the liquidity is removed from the pool when the impermanent loss is higher than the value of the fees they gained from staking, meaning the liquidity provider would have been better off holding their tokens rather than depositing them to the pool.
Eric Nguyen, CEO of Spores Research, and a former senior investment analyst of Elliott Management has articulated the crux of the issue.
“You are providing your capital and getting a return on them, but this is not without risks as some of the smaller DeFi projects have suffered exploits in the past. You should pick coins where you understand the fundamentals and believe in their long-term value because the yield might not be able to cover the decrease in their value.”
If you have more questions about MUNCH staking or want to understand staking in general better, you can contact the team on Telegram any time.
