Strategies
The Strategy determines what happens with the generated rewards in the Hives.
We are currently in the process of unifying the 3 strategies to just one.
First you should ask yourself the following questions:
- Do you want a safe or a riskier strategy? The higher the risk, the greater the potential profit.
- Would you rather get more GHNY tokens because you want to participate in the growth of Grizzly.fi?
In the Stablecoin Hives and the Mixed Hives, you can choose from the following 3 Strategies:
- Stable Strategy: All of your rewards are automatically re-invested into the two currencies of the hive, thus creating a daily compound effect. You don't get any GHNYs.
- Standard Strategy: The majority of your rewards are automatically re-invested into the Hive, thus creating a daily compound effect. Part of your rewards are compensated in GHNY.
- Grizzly Strategy: The majority of your rewards is paid out in GHNY and automatically staked in the Honeypot, thus creating the highest returns when the Honey Token rises in price.
In order to understand what the different Strategies exactly do, you should understand the two different types of Rewards. The Total APR, that is being generated by the decentralized exchange, consists of LP Rewards (also known as Fee Rewards) and the Blockrewards (also known as Farm Base APR). Following a quick explanation.
- LP Rewards: If you do Liquidity Mining without Grizzly.fi, you have to have equally much currencyA and currencyB and merge them together into an LP Token. This gives the decentralized Exchange the Liquidity to process Swaps. The transaction fees, paid by the trader that does the swap, flows into the LP Tokens. Therefore, the LP Rewards (also known as Fee Rewards) are automatically reinvested, without any influence by Grizzly.fi
- Blockrewards: The Blockrewards are the token that are minted aditionally by the decentralized exchange in order to further incentivize providing liquidity by increasing the total APR. If you do Liquidity Mining on pancakeswap, you get CAKEs. With those CAKEs Grizzly.fi can work; for example reinvest them or buy GHNY on the open market. With the different Strategies it is soley determined what happens with the Blockrewards.
As a rule of thumb you can say that the LP Rewards and Blockrewards are about the same. However, this can greatly deviate depending on the Hive and the Protocol.
This strategy is for Grizzlies who want to play it safe. It’s a great way to earn steady yields in any market situation. But don’t expect crazy profits from this strategy. You don’t get $GHNY either.
- 100% of the LP Rewards are automatically re-invested, thus giving the Grizzly the benefit of the compound effect.
- 94% of the Blockrewards are re-invested.
- 6% of the Blockrewards go to the Grizzly.fi Team so they can further develop the platform and create new innovative features.
Stable Strategy
This strategy is for Grizzlies who want to continuously increase their stable coin initial investment (principal) while also speculating on the growth of the Grizzly.fi platform and the GHNY token.
- 100% of the LP Rewards are automatically re-invested, thus giving the Grizzly the benefit of the compound effect.
- 50% of of the Blockrewards are re-invested.
- 50% of the Blockrewards flow into the Dynamic Honey Creation (DHC) and are overcompensated with freshly minted $GHNY tokens.
Standard Strategy
In this strategy, the rewards from liquidity mining is split and you get both reinvestment into the Hive and new honey tokens. This strategy is a bit more risky because the honey token can go up or down in value.
The 50% of the revenue that you get replaced with Honey tokens is then used to pay the rewards of the stakers in the staking pool.
This strategy is for the smart Grizzlies who understand that it is very beneficial, to farm as much $GHNY as possible, especially in the early stage of the project.
- 100% of the LP Rewards are automatically re-invested, thus giving the Grizzly the benefit of the compound effect.
- 50% of the Blockrewards are being used to buy $GHNY on the open market, thus creating constant buy-side pressure and increasing the price of the token.
- 50% of the Blockrewards flow into the Dynamic Honey Creation (DHC) and are overcompensated with freshly minted $GHNY tokens.
The key characteristic here is that all of the Blockrewards are distributed in $GHNY. This $GHNY is then automatically staked in the Honeypot where additional $GHNY and $BNB are paid out as rewards.
Grizzly Strategy
Last modified 9h ago