The long-awaited Auto-Compounding feature is finally available for $SWAP stakers! The software has been pushed LIVE to the TrustSwap Long-Term Staking Portal (LTSP) where you can now set your 5-year stakes to Auto Compound and maximize your Staking Score over time. A higher Staking Score means higher APYs and larger allocations in the TrustSwap Launchpad.
What Is Compounding?
When you stake $SWAP, you earn rewards which are paid out in $SWAP and claimable at any time. Compounding means putting the rewards earned back into your stake to increase returns over time. Compounding can dramatically boost returns on long-term strategies, and the more often you Compound, the greater impact it can have.
Until recently, if you wanted to roll your claimable $SWAP staking rewards back into your stake, this could only be done manually with the Compound feature. But this requires additional time and attention, as well as gas fees that are charged for every transaction.
The new Auto-Compounding feature now does this for you automatically every 8 hours with no additional transaction fees or manual effort required. This means your rewards will automatically become part of your stake, so your Staking Score can continue to grow as your stake matures.
Why Auto-Compound?
Auto-Compounding can be a great benefit for those who want to max out their $SWAP Staking Scores as quickly as possible. This could be for increased Launchpad allocations or as part of a long-term $SWAP staking strategy.
You can now manage your 5-year $SWAP stakes more effectively with Auto-Compound or just ‘Set it and Forget it’ if you want to maximize the rewards on your 5-year stakes.
How To Set Up Auto Compounding
To set your 5-year $SWAP stakes to Auto-Compound, just follow these simple steps:
- Log into the Long Term Staking Portal with your staking wallet.
- Click the drop-down arrow to the right of your existing 5-year stake.
- Select “Enable Auto Compound”, sign the transaction, and you’re done! Your $SWAP rewards will start being added back into your stake starting with the next epoch (approximately every 8 hours).
Important Notes: This feature is only available for $SWAP stakes that are committed for the maximum duration of 5 years. If you want to enable Auto-Compound on a shorter stake, you will first need to extend it to 5 years and then enable Auto-Compound.
Compounding is triggered by the LTSP smart contract once every 8-hour ‘epoch’ (at 00:00:00, 08:00:00, 16:00:00 UTC) when the first transaction (add lock, update lock, unlock, claim) of that epoch occurs. Therefore it’s possible that compound doesn’t happen exactly at 8-hour intervals.
Turning Off Auto Compounding
To turn off Auto-Compounding, just go back to the stake and select “Disable Auto-Compound”. Sign the transaction, and your Auto-Compounding will end. You will then be able to manually claim or compound your accrued SWAP rewards as usual.
FAQs
Q. What is Compounding?
A. Compounding is the process of adding your available rewards back into your active stake.
Q. What is the difference between Compound and Auto-Compound?
A. Compound is manual and requires a user transaction every time. It adds the current claimable SWAP to the selected stake. Auto-Compound does this automatically every 8 hours without any additional transactions or gas fees.
Q. Who can use Compound and Auto-Compound?
A. Everybody can use Compound for any existing stake. The Auto-Compound option is only available for 5-year stakes. Any stake can be extended to 5 years to enable the Auto-Compound feature.
Q. Do I need to pay for gas fees when I use Compound or Auto-Compound?
A. Users need to pay gas fees for every manual Compound but only pay once each time they start or stop Auto-Compounding.
Q. Do current accumulated rewards get included in the new stake when enabling Auto-Compound?
A. Yes.
Q. Is Compound and Auto-Compound available for all chains?
A. Yes
Q. Does TrustSwap charge an extra fee if I use Compound or Auto-Compound?
A. No.
Q. Can I still claim my staking rewards when Auto-Compound is on?
A. No. Auto-Compound returns all staking rewards back into your stake.
Q. Does Auto-Compounding extend my staking duration?
A. No. The staking duration can always be extended up to 5 years, but this is not affected by the Auto-Compound function.
Additional Resources
Do you need help learning how to buy and stake $SWAP tokens? Check out this quick tutorial video.
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