Game Plan
How to Maximize Profits & Yield
Whether staking or providing liquidity, knowing Reaper's economic phases is crucial for balancing returns & risk. Here are phase-specific strategies:
The Origin Event - The Early Bird Gets The Worm
During the origin phase, users can stake blue-chip assets and partner protocol tokens to earn $REAP tokens and bootstrap the protocol & liquidity. This is how you can build your $REAP positions without much risk. The Origin Event is designed for high rewards, with low risk. User's can also add liquidity to REAP/SCUSD, and earn $REAP faster, while strengthenin liquidty and building a foundation for the protocol.
Growth Phase (Expansion)
During this phase, multiple earning opportunities open up:
Scythe Farms: Stake liquidity pairs like REAP/SCUSD and SREAP/SCUSD to earn $sREAP rewards.
Hades: Stake $sREAP to earn $REAP at rates determined by market conditions and our team.
This is where different strategy comes into play, based on your own personal risk management and tolerance. After strategically running through different scenarios and through testing, we recommend the 50/25/25 strategy. Where 50% of your allocated resources to the protocol are in REAP/SCUSD in the Scythe farms, 25% is allocated to SREAP/SCUSD, also in the Scythe, and 25% in $SREAP single staking in Hades.
We strongly recommend taking profits regularly. We recommend selling at least 33% of your $sREAP emissions to balance personal gains with protocol health & sustainability. When $REAP is over-peg, sell some $REAP you earn from Hades. This is actually healthy and prevents oversupply and stabilizes the protocol. We recommend reinvesting $REAP rewards from Hades into the Scythe farms to reduce volatility exposure. If everyone participates, and follows the outlined strategies, we are fueled for success.
Shrinkage Phase (Contraction)
During shrinkage, $REAP falls below its peg, and protocol emissions weaken:
Hades will stop minting $REAP. You may want to reduce exposure to $sREAP staking temporarily.
*WARNING: $sREAP will be very illiquid during the shrinkage phase, only dip your toes in if you honestly believe in the protocol's recovery. If the shrinkage phase persists, rebalance holdings and take profits as needed.*
Stability Phase - Ideal Health & Sustainable Growth
When $REAP trades above 0.9 $scUSD but below 1.1 $scUSD, we are in stability and this is very healthy for the protocol. Emissions will remain ideal & consistent during this phase. Just be on high alert, monitor the market, since we could easily enter shrinkage or growth phases.
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