hey everybody i am hoping for some answers here today, i am not 100% sure if i have this correct but the way i read it, it sounds like the ADA rewarded to people staking their $INDY is ADA earned from the staking rewards from the ADA used as collaterol to mint an iAsset?
is this correct?
if so, does that mean people minting iAssets via ADA wont actually receive their ADA staking rewards?
if not, where does the ADA awardee to $indy holders come from?
oe do i have the whole situation misunderstood and $INDY stakers earn $INDY?
looking forward to hearing from someone,
cheers, Josh
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So the $INDY token pays out ADA that is made from fees in the Protocol. Such as 2% withdrawal fees for collateral and 2% liquidation fees.
If you have ADA in the protocol you will get ADA from regular staking from your wallet. If you put the asset you mint into a stability pool. You will then receive $INDY as rewards. Along with ADA from Liquidations.
Remember when someone is liquidated those in the stability pool take the hit and are rewarded with collateral. So if you get 100 ADA from liquidations. Most of it will go to buying back the burned iUSD or iBTC to close your collateral position.
This is not a big deal if ADA goes up in price compared to the iasset you hold. Because you can buy back at a cheaper price.
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awesome thank you very much!! few follow on questions, i have iBtc and iUsd (minted not purchased) in the stability pool, will i still recieve my ADA staking rewards ?
and my understanding of your ‘collaterol liquidation explanation’ is that there is no benefit in hugely over collaterolising an iBTC position if you plan on depositing it into the stability pool as everybody in the pool takes the hit anyway?
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If you look at your wallet like ETRNL you will see your collateral listed is the total staked in your wallet.
Now if you mean to receive $INDY. You will see it after the EPOCH is over. Hit your wallet in the top right corner on the indigo website. You should see your rewards after you hit rewards.
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