Staking: Overview [273.75% APR]
Investors can lock BUFFI tokens in a state such that they no longer earn dividends from the BUFFI exchange contract but instead will earn a flat 0.75% per day on their capital. Anything earned from this interest rate can be withdrawn to your wallet without a fee but should you wish to take out your capital, a fee will be applied. Because the interest rate isn’t compounded automatically the base APR is 273.75% (365 * 0.75%), but the APY could be much higher by compounding interest daily.
There is no minimum deposit for staking but if you wish to take that value back later, it will have a percent taken off it. The contract will account for all of the interest accrued across all investors as well as the entire liquidate-able amount and provide a surplus percent. To guarantee that you will break even, the surplus percentage upon investing needs to be more than 10%, from here you just need to leave your capital to gather interest for 13 days (10 / 0.75) and you will be able to withdraw everything you initially deposited.
All tokens earned via interest can either be reinvested back into your capital or withdrawn directly to your wallet. There is no fee for withdrawing or reinvesting your BUFFI profits.
At any point you can liquidate all of your capital and withdraw it to your wallet. There is a 10% liquidation fee and as such you will only receive 90% of your capital investment back.
Staking: The Catch
Because this contract is essentially printing free BUFFI for investors, it is possible that the contract will not be able to afford to pay everyone out. The surplus is an indicator of this and if it falls below 0%, it means the contract is no longer solvent.
Due to the liquidation fee and the fact that holding tokens earns dividends, the contract should be able to maintain at least a 10% surplus for a lot longer than other contracts of this nature but just beware of the risk and keep an eye on the surplus.