Guide #5: Mining
StrongBlock 101
Things you need to know before you start…. and more
Guide #5: Mining
What we typically call ‘staking tokens’ is called ‘Mining’ by StrongBlock. StrongBlock offers several different ‘pools’ in which you can participate in this process. StrongBlock offers both ‘single’ and ‘dual’ asset staking options.
Single Asset
With the ‘single-asset’ pool your $STRONG tokens are deposited into a pool and you begin earning $STRONG tokens as a reward. There is no required lock-up period, meaning you could literally withdraw them right away. There is also no risk of ‘impermanent loss’ due to changes of the token price. The yield of the pool is expressed as a APR, but keep in mind that it will fluctuate over time based upon both the amount of tokens available to earn as well as the number of participants in the pool
‘Dual-asset’ pools are commonly referred to as ‘liquidity pools’ and are essentially funds used by exchanges & market makers to facilitate a proper trading environment. These types of pools typically ARE subject to ‘impermanent loss’, so be sure you understand this concept before use them. The ‘liquidity’ pools typically will offer a premium APR compared to the standard $STRONG pool to compensate for the these differences.
Tip #1: You will need to pay a transaction fee both when you enter the pool, as well as when you exit the pool. So, keep this in mind when you are determining how long your funds will need to stay deposited to offset the costs. Obviously, the more tokens you mine, the more efficient the process is.
Tip #2: Once you are ‘Mining’ tokens, you then also have the option to use them in the ‘signal’ process, described in the next section…
Tip #3: Adding, or removing, any amount of tokens from a mining pool will also ‘auto-claim’ the rewards that have accrued so far. This can be a handy way to compound your mining earnings.
Tip#4: Un-mining. If you have used some or all of your mined tokens to signal, in order to un-mine, you first will need to un-signal at least that many tokens before un-signaling. Failing to do this will cause ‘crazy high gas’ fees.
