Description:
It is necessary to have an FAQ section for newcomers.
Argument:
What is the collateral for xINV & other tokens?
Market Collateral factor
ETH 60%
DOLA 60%
xSUSHI 60%
WBTC 60%
YFI 60%
xINV 50%
How often do we receive xINV rewards?
xINV accrues INV rewards every block,. this is immediately deposited into the xINV contract. This means that the supply of xINV increases more slowly than INV, allowing users to exchange their xINV for more INV as time passes.
Enter the xINV market using the "Enable" button next to it.
Enter the amount of INV to supply. This will trigger two transactions: one to approve the xINV contract to transfer the INV and another one to perform the transfer.
Enter the amount of INV to withdraw. Note that this number increases over time due to accruing interest.
Press withdraw. This will start the 14 day escrow.
A new dialog box will appear below the "Withdraw" button indicating when the locked period ends. Press "Confirm" after the period is over to finalize withdrawal.
Can rewards be unstaked immediately?
No. In order to incentivize longer staking, the withdrawal time is currently 14 days.
During the 14 day wait of withdrawal do I still earn rewards
No.
Are the Anchor rewards empty?
Yes. An Anchor upgrade to pull rewards directly from the treasury is in the works and is currently pending review. This upgrade will need to be deployed after approval. Afterwards an on-chain proposal will follow to perform the upgrade.
Is the DeFi Pulse TVL Correct?
Yes, this has been updated to show xINV now
Why is liquidity so low?
Not as many people are providing liquidity via LP tokens. We are looking into a dutch auction for LP tokens, or alternatively increasing incentive to provide liquidity.
What is difference between APR and APY?
Rate = how much interest you earn on your collateral, e.g. you deposit ETH you get 1.15% on that (so your ETH increases).
Reward APY = how much INV interest you earn. This is the number shown in the middle of Anchor, i.e. your "Claimable rewards".
Risk of liquidation
Users are at risk of liquidation if their collateral is unable to cover their loans. User that only supply and never borrow are never at risk of liquidation.
Example
Time = T
INV = 1,000 USD
ETH = 4,000 USD
User X deposits 50 INV = 50,000$ collateral.
xINV collateral factor = 50%, thus user has 25,000 USD borrowing credit.
User borrows 6.25 ETH = 25,000 USD.
... some time passes.
Time = T + x
INV = 800 USD
ETH = 5,000 USD
User X's collateral is still 50 INV. It's now worth 50 x 800 USD = 40,000 USD.
User X's loan is 6.25 ETH. It's now worth 6.25 x 5,000 USD = 31,250 USD.
40,000 > 31,250. User is not at risk of liquidation.
... more time passes.
Time = T + x + y
INV = 800 USD
ETH = 7,000 USD
User X's collateral is still 50 INV. It's still worth 40,000 USD>
User X's loan is still 6.25 ETH. It's now worth 6.25 x 7,000 USD = 43,750 USD.
40,000 < 43,750. User can be liquidated.
This is just a simple liquidation example. Note that users should also account for interest accrual.
Why do I not have 1:1 xINV after stake?
The ratio at which xINV is minted is determinted by the amount of INV within the contract and the total supply of xINV. Due to accruing interest, this ratio is constantly changing.
Description: It is necessary to have an FAQ section for newcomers.
Argument:
What is the collateral for xINV & other tokens? Market Collateral factor ETH 60% DOLA 60% xSUSHI 60% WBTC 60% YFI 60% xINV 50%
How often do we receive xINV rewards? xINV accrues INV rewards every block,. this is immediately deposited into the xINV contract. This means that the supply of xINV increases more slowly than INV, allowing users to exchange their xINV for more INV as time passes.
How do I stake xINV?
How do I unstake xINV?
Can rewards be unstaked immediately? No. In order to incentivize longer staking, the withdrawal time is currently 14 days.
During the 14 day wait of withdrawal do I still earn rewards No.
Are the Anchor rewards empty? Yes. An Anchor upgrade to pull rewards directly from the treasury is in the works and is currently pending review. This upgrade will need to be deployed after approval. Afterwards an on-chain proposal will follow to perform the upgrade.
Is the DeFi Pulse TVL Correct? Yes, this has been updated to show xINV now
Why is liquidity so low? Not as many people are providing liquidity via LP tokens. We are looking into a dutch auction for LP tokens, or alternatively increasing incentive to provide liquidity.
What is difference between APR and APY? Rate = how much interest you earn on your collateral, e.g. you deposit ETH you get 1.15% on that (so your ETH increases). Reward APY = how much INV interest you earn. This is the number shown in the middle of Anchor, i.e. your "Claimable rewards".
Risk of liquidation Users are at risk of liquidation if their collateral is unable to cover their loans. User that only supply and never borrow are never at risk of liquidation. Example
Time = T INV = 1,000 USD ETH = 4,000 USD
User X deposits 50 INV = 50,000$ collateral. xINV collateral factor = 50%, thus user has 25,000 USD borrowing credit. User borrows 6.25 ETH = 25,000 USD.
... some time passes.
Time = T + x INV = 800 USD ETH = 5,000 USD
User X's collateral is still 50 INV. It's now worth 50 x 800 USD = 40,000 USD. User X's loan is 6.25 ETH. It's now worth 6.25 x 5,000 USD = 31,250 USD. 40,000 > 31,250. User is not at risk of liquidation.
... more time passes.
Time = T + x + y INV = 800 USD ETH = 7,000 USD
User X's collateral is still 50 INV. It's still worth 40,000 USD> User X's loan is still 6.25 ETH. It's now worth 6.25 x 7,000 USD = 43,750 USD. 40,000 < 43,750. User can be liquidated.
This is just a simple liquidation example. Note that users should also account for interest accrual.
Source: @AdamBNW-INV