# Farming and Rewards ## How can I figure out what my future $GLDM rewards will be from the Mint? A simplified example for a *non-debt phase* says you have 1 $SGLDM staked out of 10 total $SGLDMs staked in Mint, so you will get 10% of the total $GLDM emissions. So, for this example we are assuming that there is a total circulating supply of 10,000 $GLDM, the current expansion rate is at 4%, and therefore 400 $GLDM will be emitted. You would get ((0.04 \* 10000) \* 0.8) \* (1/10) = 32 $GLDM. With current regulations, this is the distribution breakdown: 90% of printed $GLDM goes to $SGLDM stakers. 5% goes to DAO-fund. 5% goes to the devs. Formula to calculate your rewards: ((ExpansionRate \* CirculatingGLDMSupply) \* 0.8) \* (YourSGLDMStake/TotalSGLDMStaked) ## How long will it take for $SGLDM to pay itself off from $GLDM rewards, based on current prices? This will vary constantly as the APR in the Mint fluctuates, along with other variables such as the price of $GLDM. For a quick estimation, however, you can do the following: 1. Take the total APR shown in the Mint, and divide that by 365 to get the daily APR. (In this example, we will say the daily APR is 5%.) 2. Multiply that daily APR by the current market price of the total SGLDM you have staked to see what your daily rewards are. (In this example, we have 5 SGLDMs, each worth $50,000, for a total amount staked of $250,000. Your daily return is $250,000 \* .05, which comes out to $12,500/day.) 3. Take your initial buy-in price for SGLDMs, and divide it by your daily rewards. If you bought these 5 SGLDMs at a higher price of $70,000, for example, in the current market conditions you will recover your initial investment ($350,000) in 350,000/125 = 28 days. ## What is the formula to calculate the redemption bonus for $BGLDM? To encourage the redemption of $BGLDM for $GLDM when $GLDM's TWAP > 1.1, and in order to incentivize users to redeem at a higher price, $BGLDM redemption will be more profitable with a higher $GLDM TWAP value. The $BGLDM to $GLDM ratio will be 1:R, where R can be calculated in the formula as shown below: R = 1 + \[(GLDMtwapprice) - 1)\*coeff)] where coeff = 0.7 To further illustrate why the longer you hold $BGLDM the more profitable it is, let's take an initial $1000 investment into consideration. In this example, say this $1000 is used to buy $GLDM when $GLDM TWAP is 0.95 and then swapped for $BGLDM. If these $BGLDM are redeemed when: - $GLDM TWAP is 1.5, your investment would now be worth $1421. -$GLDM TWAP is 2, your investment would now be worth $1789. -$GLDM TWAP is 3, your investment would now be worth $2526. -$GLDM TWAP is 5, your investment would now be worth $4000. ## APR is much higher in the Mint than in the Vault for GLDM-USDC LP. Why not just invest everything there? The Vault APR is linear and prints 24/7, regardless of GoldMint's relation to the peg. Mint, on the other hand, prints only when GoldMint's TWAP is above 1.01. Therefore, it may not always be that an investor gets a higher return from the Mint than from the GLDM-PAXG pool. Because $GLDM follows the price of Gold, the GLDM-PAXG LP is akin to holding Gold in your wallet, except with the bonus of a high farming APR on top of it. In other words, if you're bullish on Gold's price action, the GLDM-PAXG LP is a way of holding exposure to that single asset while also reaping high APRs. ## Why is ‘at-peg’ (TWAP between 1.00 and 1.01) the best time to provide liquidity? When $GLDM is pegged or close to being pegged to Gold, it is more akin to having exposure to a single asset (single staking) than to your traditional LP'ing experience, where you would run the risk of impermanent loss if one of the tokens went up in value and the other did not. ## If I remove my $SGLDM from Mint without first collecting my $GLDM, will it be lost forever? No, it will still be there to collect whenever you need. ## If Gold goes up in value does $GLDM rise with it? Yes! Let's take an example: If Gold pumps in price, it won't 'outrun' $GLDM. The APR will vary in terms of its $USD value, but emissions won’t. This is something that wouldn't be possible with another pegged asset like a stable coin LP position, where the $USD value is directly tied to the emissions. If Gold rises in $USD value, $GLDM goes with it. Same if Gold falls in $USD value, $GLDM will be worthless in $USD, but it won’t affect the peg. 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