Aqua Protocol - Borrowing on TON (EN) (Telegram)
FAQ: Explanation of Reward Distribution and AquaXP Strategy
1. Concern: "The reward distribution seems unfair. Those who put in less effort get more than AquaXP stakers. What’s the point of staking on JVaulT if I can sell AquaXP, add liquidity on Dedust, and earn more rewards?"
Answer:
It's important to consider that constantly selling AquaXP and reinvesting in liquidity provides short-term earnings but limits your ability to accumulate AquaXP and benefit from its long-term value. This approach can also lead to frequent price drops for AquaXP, negatively affecting both your APR and the overall stability of rewards for all participants. Staking on JVaulT is designed for those looking to grow and hold AquaXP for the long term, rather than seeking only short-term profit.
2. Why stake on JVaulT if liquidity provision on Dedust brings higher returns?
Liquidity providers in the AquaUSD-USDT pair indeed receive higher returns due to their role in maintaining protocol liquidity. Meanwhile, staking AquaXP is a way to support and accumulate long-term assets, especially valuable for those who believe in the protocol’s future growth and token value. As Aqua Protocol expands, we expect both TVL and the project’s valuation to grow, increasing the value of AquaXP and our AQUA token. We're just at the beginning of this journey.
Recommended Strategy:
A balanced approach that combines providing liquidity on Dedust and staking rewards on JVaulT can maximize your rewards without exerting selling pressure on AquaXP. This supports sustainable growth and allows you to build up future allocations of AQUA tokens at an early stage in our project.
FAQ: Explanation of Reward Distribution and AquaXP Strategy
1. Concern: "The reward distribution seems unfair. Those who put in less effort get more than AquaXP stakers. What’s the point of staking on JVaulT if I can sell AquaXP, add liquidity on Dedust, and earn more rewards?"
Answer:
It's important to consider that constantly selling AquaXP and reinvesting in liquidity provides short-term earnings but limits your ability to accumulate AquaXP and benefit from its long-term value. This approach can also lead to frequent price drops for AquaXP, negatively affecting both your APR and the overall stability of rewards for all participants. Staking on JVaulT is designed for those looking to grow and hold AquaXP for the long term, rather than seeking only short-term profit.
2. Why stake on JVaulT if liquidity provision on Dedust brings higher returns?
Liquidity providers in the AquaUSD-USDT pair indeed receive higher returns due to their role in maintaining protocol liquidity. Meanwhile, staking AquaXP is a way to support and accumulate long-term assets, especially valuable for those who believe in the protocol’s future growth and token value. As Aqua Protocol expands, we expect both TVL and the project’s valuation to grow, increasing the value of AquaXP and our AQUA token. We're just at the beginning of this journey.
Recommended Strategy:
A balanced approach that combines providing liquidity on Dedust and staking rewards on JVaulT can maximize your rewards without exerting selling pressure on AquaXP. This supports sustainable growth and allows you to build up future allocations of AQUA tokens at an early stage in our project.