# Protocol ## What’s the normal/most simple procedure 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 "basic approach" method is detailed below. Also, take some profits along the way. Don't get too greedy. **If GLDM is above peg:** 1. Acquire SGLDM and stake in the Mint to earn GLDM rewards every epoch 2. Zap GLDM into GLDM/PAXG LP then stake or simply single stake GLDM in the Vault to earn more SGLDM 3. Stake earned SGLDM in the Mint **If GLDM is hovering at peg:** 1. Acquire PAXG then use 50% of it to acquire GLDM 2. Create a GLDM/PAXG LP in Uniswap then stake in Vault to earn SGLDM rewards 3. Stake SGLDM rewards in the Mint to earn more GLDM 4. a. Zap GLDM into GLDM/PAXG LP or simply single stake GLDM in the Vault to earn more SGLDM 5. b. Acquire BGLDM (bonds) in the Foundry and stake in Vault to earn SGLDM (only available if GLDM peg falls below 1.01) **If GLDM is below Peg:** 1. Acquire PAXG and use 100% of it to acquire GLDM 2. Use 50% of GLDM to acquire BGLDM (bonds) in the Foundry (Check first to see if there are bonds available in the Foundry, if there are none, head to the Olympus section and use 50% of PAXG to acquire BGLDM) 3. Stake both GLDM and BGLDM in the Vault to earn SGLDM rewards 4. Sell 50% of earned SGLDM to acquire more GLDM or BGLDM and stake other 50% in the Mint ## When can I swap $GLDM for $BGLDM? You can swap your bond tokens for the base $GLDM token when the following two criteria are met: 1. $GLDM TWAP is above peg, and: 2. There is enough in the treasury to cover the redemption. $BGLDM TWAP (time-weighted average price) is based on $GLDM price TWAP from the previous epoch as it ends. This means that $GLDM TWAP is real-time and $BGLDM TWAP is not. In other words, you can redeem $BGLDM for a bonus when the previous epoch's TWAP > 1.1. ## What is 50/50? 50/50 is the method best suited to provide stability for both the platform and your underlying investment. By boosting liquidity, the 50/50 strategy reduces price volatility and helps $GLDM stay above the peg for longer to keep the Mint printing. This, in turn, attracts new investors and keeps the ecosystem growing. 1. When you claim your $GLDM rewards in the Mint, sell 50% of them for PAXG. 2. When you go to provide GLDM-PAXG LP, stake the entirety of your remaining GLDM with the PAXG you've just purchased. ## Are the Mint rewards pro-rated by time? ***(i.e. if I stake three hours before the end of an epoch vs five hours before the end of an epoch, do I get different rewards?)*** No, it's determined by how much you have staked at the time of printing (i.e. end of one epoch and start of the other). It doesn't matter if you stake 3 hours before or 30 seconds before the emissions occur. ## If GLDM continues climbing above the price of the peg, will that influence how long the debt epoch lasts? Depending on the price of GoldMint, the Mint print will have to adjust to provide a buffer for any unclaimed BGLDM. As the price of GLDM climbs above the peg, more GLDM needs to be distributed to the treasury to account for BGLDM bonus redemption. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://goldmintfi.gitbook.io/whitepaper/frequently-asked-questions/protocol.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.