Staking YOW

Single Stake Pools

Single-stake pools are where only one type of token is needed to stake. No LP token-making is required, but the concept is similar to making a liquidity token (LP) and staking that LP in a farm to earn other tokens.

By staking YOW, you immediately receive xYOW tokens as proof, which you can then stake in partner pools to earn other tokens.

In short, the cycle looks like this:

Buy/Farm YOW → Stake YOW in xYOW/buyback pool (receive xYOW as receipt) → Stake xYOW in partner pools to earn other protocols’ tokens → Provide LP in the partner protocol’s farm to earn more YOW → Repeat

BuyBack YOW Single Stake Pools

You can stake your YOW to earn more YOW. When you do so, you will receive a buyback YOW token, xYOW, to represent your share in the pool. xYOW operates similarly to xSUSHI and earns a percentage of trade fees to buy back YOW. Your balance of xYOW doesn’t change, but the ratio of xYOW to YOW grows over time as the pool buys more YOW.

With your xYOW, you can stake to earn other tokens in the pool list. The xYOW tokens that you’ve staked will continue to participate in the Buyback Pool and earn YOW. When you stake your YOW into xYOW and then into a pool listed, you are earning a sum of the APRs!

The UI on the website updates the xYOW ratio once a day at random times.

Example

• User A deposits 10 YOW and receives 10 xYOW (initial ratio 1:1).
• Trade fees buy back YOW, and now the pool has 20 YOW. With 10 xYOW supply, the ratio is 1 xYOW : 2 YOW. User A can redeem 10 xYOW for 20 YOW at any time.
• User B deposits 10 YOW. With the ratio at 1:2, they receive 5 xYOW. Now the pool total is 30 YOW and the total supply of xYOW is 15 (ratio preserved).

The ratio only changes as fees are used to buy back YOW and are sent to the pool, increasing the value of each xYOW. Every holder benefits equally as their share of YOW per xYOW increases.