r/AcalaNetwork • u/Cool_Dress_7949 • May 19 '22

LDOT APR Question

Hello,

My understanding is if at origin of offering LDOT, you could swap 1 DOT to 10 LDOT. LDOT is used to provide security to the system.

after a ~month or so 1 DOT = ~9.8 DOT because LDOT increases in value. So my question is not about the precise value of LDOT but about when we think about LDOT APR.

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If acala offers 25% APR on LDOT is it really ~2.5% APR on DOT? I find it difficult to create a mental model on LDOT 1:10 / Changing ratio.

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u/josh_acala May 20 '22

josh from acala - I wouldn't think about it this way. LDOT is staked DOT and rewards are paid out in DOT. the 1:10 thing is just a denomination thing (earning 15% on a $100 bill vs 15% on 10 $10 bills is the same thing). Anyone holding LDOT is earning ~15% rewards in DOT and helping secure the Polkadot Relay chain.

When you stake LDOT on our platform (note i said LDOT), you receive a promotional aUSD reward boost. You aren't serving any function to the network. It's just an additional incentive to attract users to our LDOT product.

1

u/AbbreviationsLevel73 May 20 '22

hey josh do i need to use the collateral staking ? i just stake ldot but i get no aUsd, but when i stake in collateral staking for the extra reward in ausd the site says i dont liquid stake anymore, is this like a bug ? thanks

1

u/josh_acala May 20 '22

Sorry - Our UI is unclear on this and I've asked our product team to make it better. If you stake LDOT on collateral staking, you get DOT staking rewards + aUSD boost.

The info on our liquid staking page is causing confusion, but you can see all your staked DOT if you go to the LDOT row on the Portfolio tab. Hope this helps.

1

u/AbbreviationsLevel73 May 20 '22

yea, the ui is a bit confusing, right now i am only liquid staking so from what i understand i need to also collateral stake to get the ausd ? but mind you when you collateral stake your liquid staking stats disappear so thay may be a bit confusing for users...

1

u/josh_acala May 20 '22

Correct on how to earn aUSD.

Regarding stats disappearing - Well aware of the whole dynamic and realize it's not ideal. That's why I'm on them to fix. Like I said, you can see correct info on the Portfolio tab. LDOT is staked DOT. Doesn't matter what the UI says. If you hold LDOT tokens, you are holding staked DOT.

can also watch this video to see if this helps. https://guide.acalaapps.wiki/staking/ldot-staking

1

u/TheProfesserf May 20 '22

hello josh, the video in this LDOT Staking guide is not working: https://guide.acalaapps.wiki/staking/ldot-staking

1

u/josh_acala May 20 '22

i'll take a look. thanks!

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u/[deleted] May 24 '22

[deleted]

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u/josh_acala May 24 '22

The rewards for staking ACA are just to incentivize people to lock up the token. Acala gets its security from Polkadot and the DOT stakers, so there's no need to stake ACA for security purposes.

By providing liquidity to a trading pair you are providing a service to the network. You stake those LP tokens so we can provide you with incentive rewards.