Staking tokens to earn rewards is one of the many ways the ApeSwap decentralized finance platform creates passive income for users. When a user "stakes" a token, the token goes from being in the custody of that user in their wallet, to being in the custody of the protocol's smart contract. The protocol, in return for this temporary commitment of capital, provides rewards in the form of additional tokens, either of the same type as the staked token, or of a different token.
ApeSwap's staking options are designed to maximize stakeholder earnings with minimal fees to the protocol. Through this approach, ApeSwap ensures that our users' resources are always our priority.
Single-asset Staking Pools are the simplest method of earning returns on your BANANA and GNANA. Users only need one type of token to utilize a Staking Pool, which offers returns in another token of choice.
Each Staking Pool has an input token, and a reward token. Within ApeSwap, the input token for every Staking Pool is either BANANA or GNANA. The reward tokens are either BANANA, or a token from an ApeSwap partner project.
For example: Consider the "Stake BANANA, Earn BANANA" staking pool. The input token for this pool is BANANA, and the reward token is also BANANA. This pool allows users to stake any amount of BANANA tokens from their wallet, and the user is paid additional BANANA tokens as a reward.
A few important things to note about ApeSwap's Staking Pools:
- 1.You can stake as many BANANA or GNANA tokens as you want.
- 2.You can unstake some or all of your tokens at any time.
- 3.Rewards are accumulated each block.
- 4.Rewards are not auto-compounded back to the Staking Pool.
- 5.You can harvest the rewards at any time, or add them back to the staking pool to increase your return.
On the Staking Pools page, you'll see an APR listed next to each pool. This is the amount of reward tokens that will accrue while your input tokens are staked, expressed as a percentage of the amount of staked input tokens, calculated at current rates.
Clicking on the calculator icon next above the APR will pull up a new window, showing the current rate of return based on how long you were to stake BANANA or GNANA in that pool.
NOTE: APRs are constantly changing as a result of fluctuations in token price, pool size, and other factors. Listed APRs and calculators only provide a real-time snapshot of those factors, and are subject to change daily. They DO NOT account for the effects of compounding (re-staking earned reward tokens back as input tokens).
If all other factors remain the same, the more input tokens you stake into a pool and/or the longer you leaved them staked, the more reward tokens you could earn.
Users can harvest reward tokens out of a Staking Pool at any time in one of two ways. Stakeholders can either withdraw them back to your wallet or compound them back into the Staking Pool.
Selecting "Harvest" will send the earned tokens back to your wallet without re-staking them into the pool. The staked balance will remain in the smart contract.
If you're using the single-asset BANANA-BANANA Staking Pool, you can compound rewards back into the smart contract. Selecting "Compound" will add the earned BANANA to your staked BANANA balance as additional input tokens, allowing you to earn more rewards.
Currently, compounding is only available for the BANANA-BANANA Staking Pool.
Users are allowed to remove liquidity from their pools at any time. To withdraw from a pool, press the Minus (-) button next to the Staked amount. You can select to withdraw either a portion of the staked amount, or the entire balance.
Staking Pool APRs are determined by three primary factors: the price of the input token (i.e., BANANA or GNANA), the price of the reward token, and the amount of input tokens in the pool. Let's look at how changes to these three factors affect the APR of a Staking Pool.
- If the price of the input token (BANANA) increases, the APR will decrease, because each input token is worth relatively fewer reward tokens.
- If the price of the input token decreases, the APR will increase, because each input token is worth relatively more reward tokens.
- If the price of the reward token increases, the APR will increase, because the total value of the reward tokens received for the same number of input tokens has increased.
- If the price of the reward token decreases, the APR will decrease, because the total value of the reward tokens received for the same number of input tokens has decreased.
- If the number of input tokens staked in a Staking Pool increases, the APR will decrease, because the same amount of reward tokens are distributed against more input tokens.
- If the number of input tokens staked in a Staking Pool decreases, the APR will increase, because the same amount of reward tokens are distributed against fewer input tokens.