SLOTH.Finance: Essential FAQ
#DeFi protocols like Sloth can be a bit overwhelming to understand for even hardcore crypto-loving folk like those crazy yield farmers. To make things clearer (so we can get down to breeding some cute $SLOTH all day), here are 12 questions with answers that will hopefully make you a buff on $SLOTH.
Q1: How is Sloth’s Fixed 3678% APY guaranteed?
A: Sloth.Finance is a social experiment, and based on the interest yielding smart contract, users will be given at least 1% interest gain on their capital deposited. When compounding 1% to the power of 365, we reach the wild annual percentage yield (APY) of 3,678% (37.78 minus the principal 1).
Q2: Why is there a 6% withdrawal loss across all staking contracts? Where does the loss go?
A: The mechanism is built in to discourage farming exploitation, and the collected sum from the incurred loss goes back to the pool to reward all patient Sloth Breeders.
Q3: Why are there only three pools to stake? How does the single asset liquidity provider work?
A: We chose to start with pools of YFV, WBTC, and SUSHI as first three experiments. In the near future, we will open to community proposals and decide on the new staking pool(s) based on governance voting procedures.
Rather than having users add liquidity on Uniswap to retrieve the required Liquidity Provider (LP) token to stake into the designated pools, we have simplified the entire process and enabled users to get staking started with Single Asset.
This means that you’ll only need either Sloth or WBTC for the Sloth-WBTC staking pool to start breeding, lowering the barrier of entry for all.
Q4: Why am I not earning $SLOTH for providing liquidity to the ETH-SLOTH Uniswap Pool?
A: The current strategy focuses on deepening the liquidity across selected tokens to stake, and we’ve chosen to select from the ones with vibrant communities in hopes that they join our effort to breed more Cute Baby Sloths.
Q5: When am I getting my $SLOTH staking rewards?
A: Please note that all staking contracts have a time lock of 36 hours and 6% withdrawal loss. $Sloth Rewards are given everyday at UTC±00:00
Q6: Why is there a time lock on pulling out my liquidity?
A: When staking into the Sloth breeding contracts, breeders must be aware of a 36-hour time lock upon initiation. This is in order to help facilitate the necessary stability required by the community and build confidence.
Q7: Who is the lead developer? And how do I know this is not another rug pull?
A: The team consists of experienced Solidity programmers and veteran blockchain professionals. To ensure the interests of all Sloth breeders involved, a 36 hour time lock has been mandated on the admin keys.
This means that Sloth Master has a 36 hour time lock for any admin interactions with the contract. Sloth breeders will always be well informed in advance and this is verifiable on-chain.
Q8: Why is the entire team anonymous and should they be trusted?
A: The spirit of DeFi is that you only need to trust the contract, not the people. Sloth.Finance has been coded open-source and is verifiable on ETHERSCAN, Those who want to participate can and should learn more about it first. In code we trust. Also view for yourself at https://github.com/sloth-finance
Q9: Where can I buy $Sloth?
A: $SlOTH can be purchased on Uniswap or via the purchase interface for ETH-SLOTH at sloth.finance
Q10: What is the Uniswap token address?
A: The Uniswap token address is: 0xc09d3dbd8f1c5f70f5a624935dff180af6fb51c7
View the Etherscan contract here: https://etherscan.io/token/0xc09d3dbd8f1c5f70f5a624935dff180af6fb51c7
Q11: Will the price of Sloth go up?
A: We do not offer financial advice or speculate on pricing matters, however we can share the following: As we attract more Sloth breeders on board, we will have deeper liquidity across the DeFi space and populate more Cute Baby Sloths to this universe.
If there are more buyers than sellers, the price of SLOTH will rise according to the market mechanism, and vice versa.
Q12: Is the supply of sloth tokens deflationary? If yes, is the current supply of 25,164 going to decrease or will it go higher before deflation kicks in? How high then?
A: $Sloth LP tokens grow by 1% each day at 00:00 UTC. That’s why Day 1 there were 25,000 and day 2 we now have 25,250. $Sloth deflation occurs during the withdrawal loss.
When you withdraw, you lose the LP tokens. Every LP token has 50% sloth and 50% other token. The 50% sloth get burnt proportionally when withdrawn, while the other 50% goes back to the pool to reward other breeding users. We haven’t decided on a capped supply for the time being, but as you can see, the market mechanism is pretty balanced.
Q13: When we withdraw LP, how is the 6% loss executed? Is it 3% pooled asset and 3% $Sloth burned?
A: All contracts that can be staked have a 6% withdrawal loss. When you withdraw, you lose 6% of your deposited sum and in that 6%, which is in the form of Uniswap LP tokens, half of them (3%) is Sloth that will be burnt forever
Q14: What should I keep in mind?
A: As always in crypto, please do your own research and due diligence and act responsibly with your finances, taking into account the unique risks associated with new technologies like DeFi before you take any actions.
While we’ve all heard the legendary success stories, we don’t often enough hear the horror stories in the crypto space about people losing everything. Please don’t join this club. Take the time to understand what you’re getting into.
Remember, the $SLOTH token carries no intrinsic financial value- it is purely up to its community to weigh its value through supply and demand. Read more in the Disclaimer section of our previous article.
Did we miss anything? Have any more questions?
Let us know via these community channels (and sign up!) and other essential links below:
- Website: sloth.finance
- Twitter: https://twitter.com/slothfinance
- Telegram: @slothfinance
- Discord: https://discord.gg/sqqAMm
- Token Address: 0xc09d3DbD8F1C5F70F5a624935dFF180AF6FB51C7
- Github: https://github.com/sloth-finance
