Get answers to the most frequently asked questions on Fomo Stake
What is staking?
At a very basic level “staking” means locking your crypto assets in a proof-of-stake blockchain for a certain period of time. These locked assets are used to achieve consensus, which is required to secure the network and ensure the validity of every new transaction to be written to the blockchain.
When we un-stake is the tax on rewards or whole staked amount?
If you withdraw within 48hrs from depositing, the tax is on the full staked amount.
What is LP?
When tokens are deposited into a crypto liquidity pool, the platform automatically generates a new token that represents the share the depositor owns of that pool. This is called a liquidity provider (LP) token, and it can be used for a multitude of functions both within its native platform and other decentralised finance apps.
How to stake LP tokens
First, head over to pancake swap V2, buy an equal amount of BNB and FOMO, Deposit them as liquidity on there. This will then give you LP tokens in place for providing liquidity, then come over to fomolab.app and deposit these LP tokens into a pool of your choice.
What happens when you withdraw early?
If you withdraw within the first 48hrs, you will be hit with a 4% Tax + the standard 2% tax on any profits.
Do I get taxed if I complete the locked state?
No, there is no tax, we just take a 2% fee on profits generated, which is re-distributed to the pool that you un-staked from.
How do you calculate APY?
Amount of tokens earned per hour per 100 $FOMO staked x 24 x 365
Why is the APY lower than expectation
APY rebalances. if everyone was to exit the pool now it would go back up to a significantly higher.
What is Impermanent loss?
As multiple tokens are required to provide liquidity, an overall loss can occur if any token loses value. This is known as impermanent loss because it is only realised if funds are withdrawn while the token prices are lower, but no longer affects you if token prices rebound.
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