Why Stake bCircles?

When the user buys or sells PIP tokens, 2% from the 4.5% tax will go to staking rewards.

IMAGINE the following scenario:

  1. When the user buys sCircle and/or bCircle using BNB

    • It is a buy transaction

    • 2% goes to staking rewards

  2. When the user buys sCircle or bCircle using staking rewards (compounding)

    • It is a sell transaction

    • 2% goes to staking rewards

  3. When the user cashes out his or her staking rewards for BNB

    • It is a sell transaction

    • 2% goes to staking rewards

Weekly % is calculated by total weekly accumulated staking rewards divided by Total Value Locked.

The price of sCircle is calculated by the price of the LP (PIP/pBNB). A bCircle represents the value of 5 sCircles.

Total Value Locked is calculated by the total number of bCircles staked.

There is also a minimum amount of 4000 PIP tokens allocated to weekly staking rewards. If the total 2% does not meet this minimum, the project (Pi Protocol) will generously add in the difference. If the total 2% exceeded this minimum, the full amount will be distributed.

The more bCircles are bought and staked, the more liquidity will be locked, and the faster we can activate the Price Floor Sweeper when 2 minimum requirements are met (Not to be Disclosed).

Now, this is the true beauty of this ecosystem.

The APR and weekly displayed on Pi Protocol is not the user’s exact APR % because it is due to the time of staking. It is simply the APR % and Weekly % based on the current time of staking. Time of staking means the time when the user stakes.

Let's ASSUME the following simple scenario:

  • The user buys a bCircle for $200 and the current Weekly is 5%

  • The user receives 5% * $200 = $10 in PIP tokens

  • Fast forward to 6 months later, a bCircle is $800 and the Weekly % is only 2%

  • The user receives 2% * $800 = $16 in PIP tokens

  • The user only invested or paid $200 to buy the bCircle so the user’s actual % is $16/$200 = 8%, not the 2% that is on the website

The simple scenario above does not include the accumulated rewards that the user received for the last 6 months.

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