Demystifying $fStatic

Overview

For the past fifteen (15) days investors such as myself investing in the Charge DeFi ecosystem have been able to farm $fStatic rewards tokens for the upcoming FTM chain launch. If you don’t know what $xStatic is please check out my article on the subject which highlights how $xStatic is used to earn your $fStatic rewards.

Even after these fifteen days, questions and confusion around what $fStatic is, what you can do with it, and how much of it you can earn remain for many investors. Follow along with me as I walk you through these topics and hopefully when we are done all of your questions will have been answered.

What is $fStatic

The $fStatic is a BSC token that is used as a placeholder (IOU) for FTM chain $Static tokens ($FTMStatic) which will be airdropped to investors on 28 March 2022. Until that time there is no official marketplace for the tokens. You cannot sell them through PancakeSwap or any other DEX. Investors are, however, free to negotiate an acceptable price for the tokens and make a direct, or assisted, exchange.

When Charge DeFi launches on FTM the $FTMStatic token will begin with a face value of 10 USDC. For those wondering how the initial value will be established, it is something that anyone can do if they are the first to provide liquidity on a given token pairing. We can thus assume that Charge DeFi will create an initial Liquidity Pool (LP) which will set the initial value. This will most certainly be done before investors receive their allocation of $FTMStatic.

After the initial LP has been created by the Charge DeFi team and investors have received their airdropped $FTMStatic tokens public trading officially begins. Although it will now be possible to go to a DEX, SpookySwap is my guess, to sell your $FTMStatic it is not really recommended. Liquidity at the start will be VERY low so sells will have a significant impact on price, buys will as well, as such $FTMStatic buys and sells will be VERY volatile in until significantly more liquidity has been provided. Investors will likely be better off pairing with existing $USDC and then farming for rewards.

There is no utility for the BSC $fStatic tokens once the airdrop of $FTMStatic has been completed. You can keep them in your wallet or send them to a burner wallet if you like. Perhaps someone will make it possible to exchange them for an NFT to commemorate the event but nothing like that is planned to my knowledge from anyone on the Charge DeFi team.

How Do I Earn $fStatic

You will need $xStatic. Once you have your $xStatic you can deposit them into the xStatic (Membership) farm. That farm shows a few pieces of information that tend to confuse people so please follow along.

The Total xStatic Locked is pretty clear; it represents the total quantity of $xStatic tokens currently deposited in the vault. The next two items: Current APR (Pool Average) and Daily (Pool Average) is where people tend to get caught up. These numbers are based on the total value locked (TVL) of the assets that were deposited for the $xStatic tokens.

Depending on which assets were exchanged for $xStatic an investor may have received tokens in a 1:1 ($Static tokens) or 4:1 (LP tokens) ratio. An investor who exchanged $Static for $xStatic will earn significantly less $fStatic than someone who deposited the same dollar amount of $Static-$BUSD LP tokens.

A farm’s APR represents the interest, or income, that being generated based on the value of the assets deposited. Since $xStatic doesn’t directly have a value associated with it the values shown for APR are based on the average value of the deposited items.

When it comes to your $fStatic earnings the actual dollar value of what investors exchanged for $xStatic does not matter. The metric that matters is the percentage of the pool your $xStatic deposits comprise.

What is an $xStatic Worth

How do we determine the average value of an $xStatic? We take a look at the Membership page and consider the TVL of the various assets. We then divide the sum of the TVLs for both asset classes and divide that by the quantity of $xStatic. This calculation yields a present average value of an $xStatic as $0.1408. This is a result of $2,876,743.41 TVL divided by 20,430,365.25 $xStatic tokens.

Great How Much $fStatic Can I Earn

You will need to know the amount of $fStatic emitted in a given day. Be aware that the number of BSC blocks in a given day is not fixed. It does vary a little so the daily emissions of $fStatic each day is also a little variable.

To figure out how much $fStatic you can earn with a given dollar value you can figure out how much $xStatic you will get based on assets deposited, $Static, or $Static-$BUSD LPs. Remember that the LPs are more valuable to the project and thus you are rewarded with more $xStatic as a result. Once you know how much $xStatic you will have you can then determine your percentage of the rewards pool. Knowing your percentage of the rewards pool and the total amount of $fStatic emitted during a day you can calculate your daily earnings. Remember, however, that $xStatic deposits are unlikely to stay the same throughout an entire day so your earnings will likely be lower than what you calculate. The following table shows what you might earn given a $1000 investment at the time of my writing this article.

Feel free to view or copy the spreadsheet I used to create the above table. I will update the spreadsheet again once we get details for the second $xStatic farm which is scheduled to start on 19 March.

Disclaimer

All content is provided for informational and entertainment purposes only. Investors should do their own research and make sure they understand the risks of their investment before committing funds. Cryptocurrency is a high risk asset class with high levels of volatility. Loss of principal is possible.

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Grompy

Grompy

Dad, husband, crypto, real estate, stock, and technology enthusiast