A reminder about staking
Dear community, we eagerly look forward to starting this journey with you! But first, we would like to share some essential information about staking.
Supply and Timeline
Staking will last 5 months with 3 halving cycles taking place at 10, 30, and 70 days post-launch.
For the first ten days, 0.1138 Nova will be minted per block, or approximately 740 Nova per day. The first 24 hours, however, will have a 2x bonus on Nova rewards, with .2276 minted per block, or 1480 per day.
10% of this will be directed to the team. The total supply of Nova at the end of the 5 months staking period will match Komet at 30,000.
Reminder of Nova’s Purpose
Nova is intended as a utility for long term users of our financial strategy collective (FSC). We are, of course, aware that short-term yield hunters will try to exploit Nova. As such, we have designed Nova staking to appeal to long term users and combat the yield hunters: an attractive initial APR, a sustainable APR for the entire staking duration, high unstaking fees, minimal excess runaway inflation, and low initial liquidity for the NOVA/ETH pair.
Some observers may note that low liquidity is a negative thing. We, however, view it as a positive: it is another deterrent against dumping. To emphasize again: we are not a farm and dump project. If you are not interested in reaping the benefits of NOVA, please do not stake. We are committed to building a novel, powerful, and accessible way of interacting with the DeFi universe. Hollow farm and dump schemes with no substance behind them are not in line with our values and mission.
APR*
As a special thanks to long-term users, we will be seeding our NOVA/ETH pool with an APR of 1,000% for the first 24 hours!
Ready to stake? Here’s how to do it:
How to add liquidity?
To start earning NOVA you will have to add liquidity to the KOMET/ETH pool on Uniswap.
1/ Add liquidity by following this link: https://info.uniswap.org/pair/0x577349ecd462a369ab71908a260ae1e2d8982b74
2/ Select “+ Add liquidity” button on the KOMET/ETH pair page
3/ When you add liquidity you have to enter 50%/50% share of KOMET and ETH of KOMET and ETH. Do not worry, Uniswap will automatically fill the other input box with an equivalent amount.
4/ Then, select “Approve KOMET” button and wait for the transaction.
5/ Lastly, you will have a window with the amount of KOMET/ETH LP tokens you will receive. Confirm your action by selecting “Supply” and “Confirm supply” buttons.
6/Well done, you have just added liquidity to the pool and received you KOMET/ETH LP tokens. Now, get back to app.komet.finance to start staking.
Important reminders to stakers
During the first 24 hours of staking, several very important details must be well-understood:
- Stakers will receive a 2x staking bonus on their NOVA!
- As we incentivize users to long term commitment to Nova and the FSC itself, we have implemented graduated fees on unstaking. These fees will initially be very high — 30%. However, they will decrease by 0.5% (each day) for two months, until a minimum fee of 1% is reached.
- Withdrawal of Nova will not be allowed during the first 24 hours of staking in order to prevent any scams and fake Uniswap pools.
Future Changes
As mentioned earlier, the current plan is for Nova staking to last for 5 months. However, since Nova is a governance token, the minting schedule can be voted to be extended once the 5 months staking period ends. This is in line with our mission of developing a decentralized FSC.
We did not want to commit to an excessively long staking schedule, given the uncertainty surrounding both the DeFi space as a whole and our future development timelines. Giving Nova holders the option to extend staking later provides a balanced sense of flexibility.
Our APR calculation uses the following assumptions at the time of writing:
KOMET Price: $120
NOVA Price: $21
Total Value of KOMET/ETH LP: $1,200,00
Please note that APR is subject to many factors.
This includes and is not limited to:
- KOMET price (APR decreases as KOMET price goes up since it increases the value of your KOMET/ ETH LP)
- ETH price (APR decreases as ETH price goes up since it increases the value of your KOMET/ETHLP)
- NOVA price (APR increases as price of Nova goes up since the value of your staking rewards increase)
- Your share of the KOMET/ETH pool (APR increases as your share of the pool, since you own a bigger part of the pool)
- PlasmaPower (APR increases as PlasmaPower goes up)
- Withdrawal fee (APR will be lower if you choose to unstake)
- Liquidity and slippage of the NOVA/ETH LP (APR decreases as liquidity in the pool falls, creating higher slippages)
