Passive yield with sOADA
Mint > Stake > Earn
Last updated
Mint > Stake > Earn
Last updated
Earning yield with sOADA is very simple. It does not require active management, and users will earn greater yield than the base staking rate.
The first step to earning with sOADA is minting OADA. The minimum amount that can be deposited at a time is 100 ADA. There is a 1 ADA transaction fee added whenever you mint OADA. For this reason, it is generally better to mint one large amount rather than multiple small amounts.
After you have minted your OADA, it is time to stake it. Unlike minting, there is no minimum amount when staking. However, users should be aware of the maximum staking capacity. There is a 2 ADA fee for staking OADA, similar to minting. The percentage shown above the UI displays the APY of the previous epoch. Yield is not fixed and is likely to change over time.
Users should be aware of the max capacity on the staking vault. If the cap is full, stakers will either have to wait until later, or they can add their funds to the staking queue and they will automatically be staked once the queue opens up. Funds enter from the queue in order they were deposited. The queue does not lock your funds, so you are free to exit the queue at any time.
With your sOADA in your wallet, you are free to use it as you would any other CNT. Integrations with lending markets and other DeFi products are currently being explored. sOADA is particularly attractive for this use case because it is a yield bearing token. However, even if you do nothing with it in your wallet you will still be earning better yields than you would from staking ADA.
Yield is auto-compounding and can be tracked in the unstake tab. The difference between the figure in the box at the bottom and "Amount" box is a rough approximation of your net profit (this will only be technically accurate if the conversion ratio of OADA:sOADA at time of staking was exactly 1:1)
Eventually you will decide it is time to exit your position. The first step is unstaking your sOADA. Users are free to unstake their sOADA whenever they like, but there is a 2 ADA fee to unstake, similar to staking and minting as discussed above. The amount shown in the bottom box is the total OADA you will receive after the fee is subtracted.
With your newly unstake OADA, you will head to the Splash OADA/ADA stableswap. This pool is configured to have very deep liquidity. You can see even with a very large position the slippage is very low. Worth noting: the pools liquidity will always be deepest at the beginning of each new epoch so that will likely be the cheapest time to swap.
Confirm the transaction and you are finished.
Mint > Stake > Earn
