1.“Generally speaking, what's the easiest flow to follow for compounding rewards?”
The following is NOT FINANCIAL ADVICE. It is for education and entertainment purposes only.
There are countless strategies, and which one you choose depends on your risk tolerance and short, medium, and long-term goals. That being said, the "plug-and-play" method is detailed below. Also, take some profits along the way. Don't get too greedy.
If $UNITE is OVER the peg:
-Buy $UNITE and pair it with $ONE to provide liquidity, and stake your UNITE-ONE LP in the farm to earn $USHARE rewards.
-Take your $USHARE rewards and stake them in the Boardroom to earn inflationary $UNITE rewards.
-Sell half of your earned $UNITE for $ONE, and compound it back into the UNITE-ONE LP.
If $UNITE is UNDER the peg:
1.Buy UNITE and exchange it for UBOND. If you are LP'ing, you can break the LP to exchange $UNITE for $UBOND, and use the remaining $ONEB to buy $UNITE to also exchange for $UBOND. Now you have a big fat bag of $UBOND, and you've also helped bring $UNITE back above peg so that the Boardroom can resume printing.
2.Sell $UBOND for a redemption bonus once $UNITE is back over peg (above 1.1 TWAP).
2. "What is 50/50?"
50/50 is the method best suited to provide stability for both the platform and for your underlying investment. By boosting liquidity, the 50/50 strategy reduces price volatility, and helps $UNITE stay above the peg for longer to keep the Boardroom printing. This, in turn, attracts new investors and keeps the ecosystem growing.
1)When you claim your $UNITE rewards in the Boardroom, sell 50% of them for $ONE.
2)When you go to provide UNITE-ONE LP, stake the entirety of your remaining UNITE with the $ONE you've just purchased.
3.“There's so many auto-compounding vaults, what should I do?”
We are in the process of getting setup with auto compounding vaults. The following advice will apply once we have them setup.
If you are in a $UNITE-ONE LP auto-compounding vault like Beefy Finance, you are creating buy pressure on $UNITE. If you are in a $USHARE-ONE LP auto-compounding vault and you also hold $USHARE elsewhere, the auto-compounding vault will be suppressing its price since it is continuously selling $USHARE.
4. "APR is much higher in the Boardroom than in the farm for UNITE-ONE LP. Why would I not just invest everything there?"
The farm APR is linear and prints 24/7, regardless of Unite's relation to the peg. Boardroom, on the other hand, prints only when UNITE's TWAP is above 1.01. Therefore, it may not always be that an investor gets a higher return from the Boardroom than from the UNITE-ONE pool.
Because $UNITE follows the price of $ONE, the UNITE-ONE LP is akin to holding $ONE in your wallet, except with the bonus of a high farming APR on top of it. In other words, if you're bullish on $ONE's price action, the UNITE-ONE LP is a way of holding exposure to that single asset while also reaping high APRs.
Terms and Mechanisms
1. "What is an expansionary epoch?"
An expansionary epoch is the amount of $UNITE that is printed by $USHARE in order to increase the total circulating supply.
To simplify the explanation with a hypothetical example, let’s say an epoch is 3 days long and there are $100 dollars in the circulating supply.
If the money printer grows the supply by 10% of the existing circulating supply each day, at the end of the 3 days you'd have 100*1.1*1.1*1.1 = $133.
Then, let’s say the emissions decrease to 5% per day.
You’d then have have $133 *1.05 *1.05 *1.05 = $153 at the end of this second epoch.
2. “What is compounding in the context of Unite Finance?”
Earning a return on gains you've already made from previous periods is what is commonly referred to as compounding.
For example, consider a 3% daily APR on an initial investment of $100.
After 24 hours it would grow to $103.
After 365 days without compounding: $1195.
After 365 days, compounding once daily: $4,848,272.
1. “I'm invested in the project for the long term, and I feel guilty taking profits. Am I still a team player if I move profits somewhere outside of the project?”
Never put all your funds in one basket, even if it's $UNITE. Always take gains along the way. The UNITE team views it as a success if, over time, everyone gets their initial investment back into their wallets and continues investing with the profits that come after that.