We want to incentivize investors to HODL AAG as much as we can, and an excellent way to do that is by implementing an auto-compounding feature into our Staking Program that boosts APR over time.
To save you the effort of manually compounding your rewards by claiming and staking, our staking program gives you an additional APR on your Unclaimed Rewards – as long as you do not claim your $1AAG, you can earn benefit from auto-compounding (your unclaimed rewards generate more rewards). Let’s walk through an example:
You have staked $10000 in $1AAG tokens at a 120% APR.
After 1 week, you would have received $214.3 worth of $1AAG that you can claim.
If you do not claim these rewards, they are staked for a further 120% APR.
After 2 weeks, your initial $10000 generates $214.3 worth of $AAG, but your rewards have generated an additional $4.6 worth of $AAG.
Therefore, after 2 weeks, you have earned $433.2 in $AAG tokens as opposed to just $428.6 by doing nothing – since this value will grow exponentially over time, you should be able to see the beauty of auto-compounding
Rewards are unlocked after 1 week of staking, but make sure to not claim so you can benefit from more rewards!
HODL-To-Earn and APR Boost
We decided to go a step further and offer a time-weighted APR boost for your unclaimed rewards. This means that if you don’t withdraw your earned $1AAG tokens, you can get up to a 15% extra boost in APR. For example:
Base APR = 100%
After week 1 = 100.575923%
After week 2 = 101.153846%
After week 26 = 115%
So, the longer you keep your earned $1AAG tokens in the pool, the more you will earn!