CashCow Staking DApp
Staking? What’s that?
From a cryptographic technical point of view, Staking is the node validation mechanism used by PoS (Proof of Stake) networks (blockchain). It consists of the process of keeping funds locked in a cryptocurrency wallet or smart contract for an indefinite time. Its objective is to act as a backup for the operations of a blockchain network, validating said operations, providing it with security. The validators randomly choose the cryptocurrencies that will participate in each transaction and are benefited with a proportional part of the corresponding transaction fees. The more cryptocurrency units you have blocked, the greater the probability also to be chosen in the operations = the greater probability of profit.
However, in the world of Decentralized Finance (DeFi) the term staking is also used to refer to the simple act of depositing tokens in a smart contract to obtain some type of reward in return. The system is very similar, it requires depositing tokens in exchange for a percentage “n%” for the benefit of another security that may even be a different token. The tokens that one can generally deposit for staking can be individual tokens, participation tokens in a liquidity pool (LP Tokens) or non-fungible tokens (NFTs).
In the particular case of the CashCow Protocol staking platform, we will use the term staking from the point of view of DeFi, and the deposit of COW and MILK tokens, and of participation tokens in liquidity pools (LP Tokens) of the COW-BUSD and MILK-BUSD pairs.
💰 Staking CashCow
In the second stage of our Roadmap, we set ourselves the objective of developing a DApp in which holders of COW can stake their COW to be rewarded with MILK.
This feature includes:
- MILK Token contract
- Contract Staking Contract (Masterchef)
- DApp User Interface
So we plan 4 types of pools where the investor will earn MILK token:
- COW-BUSD Pool LP Pancakeswap (40% of MilkPerBlock )
- MILK-BUSD Pool LP by Pancakeswap (20% of MilkPerBlock)
- Pool of Token COW (30% of MilkPerBlock)
- Pool of Token MILK (10% of MilkPerBlock)
You can select either Farm or MilkBar from the menu on the left margin.
🥛 Why the token Milk — MILK?
The Milk Token is the token with the following uses:
- Reward users Staking of CashCow.
- Reward users who deposit in any of the 4 Staking pools.
- Reward users of the CashCow Farm Game.
- Minting of Farm Game NFTs.
- In-game currency (Token in-game).
MILK tokenomics are totally different compared to CashCow Token.
Since CashCow can produce infinite milk, MILK will have an infinite supply, but will have a burning mechanism in which part of the MILK used in the NFT Market will be withdrawn from circulation.
The issuance rate will start at 90 MilkPerBlock at the beginning of the Staking DApp launch and will be halved (45 MilkPerBlock) after 30 days. The issuance rate will remain at 45 MilkPerBlock assigned to all pools.
In the future, a game pool will be created to coin MILK that will be produced by the NFT cows, but this will not affect the staking pool’s broadcast schedule.
The MILK token is scheduled to launch on October 24, 2021 along with the Staking DApp.
How is the CashCow Staking DApp used?
Here we provide a video tutorial that explains everything: https://www.youtube.com/watch?v=kf_e0bK84IY
- Note: Don’t forget to follow our YouTube channel so that you are the day of more information.
🤔 FAQ — Tips
In addition to getting MILK through Staking, will I be able to buy MILK in PanCake Swap?
- Yes, you can buy MILK
When I deposit COW in a Staking pool, will I stop receiving the 4% reflection compensation?
- Yes, because the 4% reflection is distributed among the holders, and being a holder means having COW in your wallet, not in a Staking pool.
- But keep in mind that you will be winning #MILK, which also has value.
* As soon as you add your COW back to your wallet, you will once again receive the proportional part of 4%.
- If you do not put all your COW in Staking, you will continue to receive your share in the corresponding proportion of what you have left.
When depositing or withdrawing COW from the Staking DApp, will the 10% commission be deducted for each of the transactions?
- Yes, that is the characteristic of the Token COW. Both when depositing and withdrawing from the Staking pools, the transaction fee of 10% will be discounted. So, depositing and withdrawing in total will charge you 19%.
- Don’t worry, for that reason the Staking pools with COW have the highest rewards in MILK of the Staking Dapp (40% or 30% of the MilkPerBlock).
- Even keep in mind that the percentage of each pool will be divided proportionally by the amount invested among all the investors in that pool, therefore, if there were few investors in one of the COW pools, the rewards would be greater.
- You must calculate based on your earnings of MILK when you have obtained enough to offset the commission of both transactions.
- Tip: Taking into account the 10% commission when buying COW, the 19% commission for entering and exiting the Staking and another 10% when withdrawing funds when you want to get out of COW this will take you approximately 35% commissions, although not You can have an accurate forecast of when it will start to be profitable because it will depend on the revaluation of COW and MILK in the future plus reflection, we roughly calculate that, with Staking, for every 100 USD of investment, you will have profitable ALL the commissions when you get 35 USD in MILK (Buy + Enter and exit Staking + Withdraw funds to another token).
- * To this we must add that while you hold, you are earning COW thanks to the 4% reflection, in addition to the value of the token that must increase in relation to the purchase. So that 35 USD is an upward estimate, you could write off with less. From there, it’s your earnings
Should I pay another type of commission in Staking?
- In the COW ones, no. Since you are contributing 10%.
- Only in the MILK pool there will be a deposit fee of 2%, which will be used to burn MILK and thus reduce the current.
I am a well positioned holder and I have options to be a member of type: Legendary, Rare or Uncommon… When withdrawing COW from Staking, will I lose positions?
- Yes, but the ranking will not be reviewed yet. So you can invest in the Staking pool and then when positioning day approaches, withdraw it back to your wallet to add tokens.
- You don’t have to invest all the COW. You can calculate how much COW you can leave in your wallet to ensure you are among the 10,000 (Uncommon); 1000 (Rare) or 100 (Legendary) first holders.
- In any case, a few days before making decisions, we will notify our community of the date on which the positioning will be reviewed so that you can make your decision.
What are the risks associated with investing in the CashCow DApp Staking platform?
This type of investment, on any platform, carries its risks. In the crypto world nothing is 100% secure. Among the possible:
- Devaluation of assets.
- Permanent losses.
- Make a deposit and withdraw it without first recovering the cost of commissions.
What is an LP Token?
The Token Liquidity Provider (LP Token) is a fundamental concept in the DeFi space. The term refers to the ease with which one asset can be converted into another. In traditional finance, cash is considered the most liquid asset, because it can be easily exchanged for gold, stocks, bonds, and other assets.
Ok, and I know what the LP Token is, but do I need to do it in all cases and how do I add liquidity in PancakeSwap?
You will need LP Token liquidity only if you opt for Farm type staking: COW-BUSD or MILK-BUSD in order to convert it into MILK. You won’t need it for MILKBAR options.
This is done in PancakeSwap. You must access the “Liquidity” section and create the corresponding “Add Liquidity”. First you will need to have both tokens including the BUSD in your wallet, because the LP Token is generated in pairs, so you will have to block the same value of COW-BUSD or MILK-BUSD in addition to paying the corresponding commissions set by the PancakeSwap platform when you add liquidity and also when accepting contracts. Once done, you can go to the CashCow DApp and put the MILK into production.
What happens to what I deposit in the LP Token, do I lose it?
No. The LP Token is a deposit, not a payment, the Tokens used can be withdrawn in full to your wallet at any time along with the profits generated. Obviously, it is inadvisable to do it every little time, it is better to wait until you obtain sufficient benefits from the resulting token to cover the expenses generated with the commissions, in addition to the benefits that you want to obtain, this is done to get a profit.
How long you keep the deposit is up to you. You can be days, weeks, months or years.
Of course, remember that, when you move COW, you will pay the 10% commission, this must be calculated within your expectations, as we explained in a previous section.
What are APR, APY, and ROI? How is it calculated?
Both the APR, the APY and the ROI will be clearly indicated in each of the options chosen from the DApp.
APY and APR
In the financial world basically, we could say that the APY (Annual Percentage Yield) takes into account compound interest, and that the APR (Annual Percentage Rate) does not.
But the differences go further …
The APR reflects the true cost of a loan or other debt. For this reason, the main interested in knowing it is the borrower, who wants to apply for a loan.
The APY reflects the actual return on an investment. For this reason, the main interested in knowing it is the investor.
Both APR and APY can be used to value investments and loans.
The calculation formula for both includes the interest rate.
The difference is that the APR also includes the rest of the commissions and other costs of the contract, while the APY shows the impact of compound interest on your investment (and, therefore, the true return).
The ROI (Return on Investment), which indicates the percentage of return in relation to the time in which the investment is recovered.
Let’s see an example (simulation with fictitious data for didactic purposes, in the DApp the values will be the real ones) for a MILK-BUSD Staking:
In this assumption, the APR for the FARM MILK-BUSD LP would give a value of 1,334.81%. By clicking on the calculator icon that appears in front of that value, the system will provide us with the ROI and APY information, which tells us that in one day we will return 3.66% of the investment, in 7 days 28.59% and in 30 days 193.74%. If we keep the deposit for a year, considering manual compound interest once a day, the estimate is very high. It must be borne in mind that these percentages vary constantly depending on the number of users that enter and exit this Staking. Thus, it is not a fixed data in time.
If you have any questions, do not hesitate to ask in our groups and social networks:
▪️ [EN] cashcowprotocol.medium.com
▪️ [SP] cashcowprotocol-en.medium.com
▪️ [EN] twitter.com/CashCowProtocol
▪️ [SP] twitter.com/CashCow_ES
▪️ Announcement Channel [EN] t.me/cashcowprotocol_channel
▪️ Chat Group [EN] t.me/cashcowprotocol
▪️ Chat Group [EN] t.me/cashcowprotocol_en
▪️ Global: discord.com/invite/3kFU9vCjs7
▪️ [EN] instagram.com/cashcowprotocol
Our best wishes, the CashCow Protocol team.