Let’s discuss some Advanced staking strategies. So far from what I have gathered from all the testing rounds and discussions, this is how I feel the advanced staking layout is gonna be:
Let’s assume the following (My personal hypothetical figures) :
We are staking 1000 ZKP;
APY is 50%;
Lock in period is 30 days;
PRP (Panther reward points) is fixed at 10 PRP per 30 days of lock in;
PRP: ZKP ratio : 1:1;
Assume Panther V1 launches 60 days after Advanced staking launch;
Scenario 1 :
We stake our 1000 ZKP on day 1. So with an APY of 50% and 60 days of continuous staking, when Panther V1 launches we will have:
Staked ZKP: 1000 ZKP
Staking rewards: 83 zZKP
PRP : 20 PRP = 20 ZKP
TOTAL : 1103 ZKP (Assuming we convert PRP to ZKP and zZKP rewards to ZKP)
We stake our 1000 ZKP on day 1. After 30 days we decide to forfeit our PRP rewards and unstake our 1000 ZKP. So at the end of 30 days we have:
Staked ZKP : 1000 ZKP
Staking Rewards: 41.5 zZKP
PRP : 0
TOTAL : 1000 ZKP (+ 41.5 zZKP at V1 launch)
When V1 launches (30 days later as per our example) we can unstake our 41.5 zZKP and convert it to ZKP if we wish.
So basically, it makes sense to unstake before V1 launch ONLY if we depend on the 1000 ZKP that we staked on day 1 for some urgent financial need. It’s clear from the above example that if we continue to stake till the launch of V1, we will have both the zZKP rewards from APY as well as PRPs that we can convert to ZKP and compound in the future.
All that I have mentioned above is based on my PERSONAL RESEARCH! All the figures mentioned above are HYPOTHETICAL and of course NONE of this is Financial Advice!
In addition to what I have mentioned, a personal strategy to outsmart the system and play both sides would be to stake your ZKP capital in small portions. In the example above, I would stake the 1000 ZKP into say 2 portions of 500ZKP each. The only thing I’m losing here is the extra gas fee for the additional stake. If I do this, I will have the freedom to execute both the scenarios mentioned above at the end of 30 days (pull out 500 ZKP and let the other 500 ZKP ride till V1 launch).
Again, Not financial advice! DYOR!
I wonder if they will put everything on the same day and wait for version 1, and then they will all exchange PRP for ZKP together, will there be a dump on that day
Yeah, It’s a good idea to spread the staking to avoid lump sum withdrawal (in case of emergency) and losing out on PRP.
Personally I have no intentions of doing anything with my ZKP other than accumulating more for a very long time so I will stake it all and wait
Thanks for starting this topic Av8r. It’s good to start planning the strategy in advance. I completely agree with you and makes sense to hedge part of the your position, in case of emergency. My plan is to go all in, and slowly pulling some, for profit/re-allocation once price is above $1.
Do we know or have any idea (feel free to especulate) how much APY will be for other assets? (xrp, for example)
Thanks a lot! I am planning to stake all my ZKP as well till V1 launch to maximise on gains…maybe keep 10% aside (still staked) for price speculation…I am hoping for atleast a 25% APY for other zAssets once V1 is released…although it can’t be too high as the remaining ZKP supply will have to be distributed over several years (12 years if I’m not mistaken)…so hopefully even if the APY is lower…the market price of ZKP at that point should compensate adequately!
We have to keep in mind that only if the APY/Rewards are high enough will people be willing to stake their assets (ETH, Matic, etc as zAssets) in the MASP…and only if enough assets are staked will we have true Privacy…so it’s going to be a really interesting play for both sides! Really looking forward to those discussions in the DAO post V1 launch!
Completely agree. To bring people in, either the APY or ZKP price has to be high. If the project is successful, and exchanges starts to mint z assets, I think we will not need to worry price-wise.
How is number of PRP decided? And what are its benefits other than it being 1:1ZKP?
The ratio is NOT 1:1…I just used it for my example…the actual ratio is yet to be announced!
PRP is meant to incentivise continued staking…That’s all!