Stake CVY To Increase Rewards

Share Conviction and Add Skin-In-The-Game

Anyone can join Covey and compete to be the best investment analyst. We don’t ask for a brokerage connection, we don’t require money, and we don’t care where you are from. We care about your performance and we reward CVY tokens to the best.

Open communities have crazy benefits, we’re finding talented analysts that no one has ever heard of, soon we will be able to invest alongside side them, generating more wealth for all. But an open community at scale can have weak spots.

We don’t know how seriously you are taking this (i.e. conviction in Covey portfolio) and we can’t tell good actors from bad. Bad actors can create thousands of accounts increasing noise and reducing our ability to find and reward the best. They can create portfolios with massive leverage because there is no downside, increasing luck and reducing skill at the top. But we can’t let bad actors ruin our search for the best.

Introducing Staking on Covey, Launching Today.

The best analysts are rewarded CVY tokens, these tokens credentialize them, grant governance over our community, and earn discounts on any investment products built on our community data. Today they do one more thing.

Analysts can now stake (think lock up) their CVY tokens to increase the monthly and annual rewards by up to 50%. Covey’s Alpha Algorithm will now consider conviction as a metric when determining who is the best investment analyst.

Staking Adds A Metric For Conviction

Confidence in ones portfolio is incredibly difficult to measure. The metric that shows you are dumping all your cash from various accounts into one single portfolio is deeply personal and lost on most platforms. Hedge Fund managers often times share how much of the Funds’ portfolio is theirs or how much of their net worth is in the fund, showing investors a measure of their conviction in the fund. Staking offers our open community a metric for that, when conviction is high, stake more CVY, when low, reduce CVY staked.

Staking Adds Skin-In-The-Game

Our first tendency with a free open community that offers rewards is to find a way to game the system. Today there is no downside to adding 5x leverage to your portfolio and praying for a big market move in the month. We know that strategy may work on a monthly basis but will fail long term. Analysts bankruptcies need to have a strong disincentive. If an analysts goes bankrupt with CVY staked, we slash (take) their stake, returning it to the reward pool for future payouts. Bankruptcy is defined as a portfolio value below zero.

Staking Fights Spam

The ability to create a thousand accounts on Covey and win rewards is greatly reduced. Analysts now have to pick the account they believe will do best then stake CVY to it. Analysts who do not stake could earn CVY but they are at a disadvantage with payouts reduced by 50% for those who do not stake.

How Staking Works

The next time you log in to Covey you will see the box 👇 on your “TRADE” page. Make sure you are connected to MetaMask to stake your CVY.

1. Look to the top right of the box, to see how many CVY tokens are available to stake (meaning CVY balance on Polygon).
2. Input the amount you want to stake in the white box ☝️. It cannot exceed the amount available.
3. Click “STAKE FOR MAR/23”. That amount staked will take effect next month, staking closes at midnight UTC at the end of the month. Once past midnight, those tokens are locked until next month. You can elect to remove your stake at any point by hitting “UNSTAKE MAR/23”. You will receive your CVY back at the end of the current month if you do not go bankrupt in the current month.
4. In metamask confirm two transactions in a row, the first is an approval to transfer your CVY to our staking contract and the second is the actual transfer of the CVY to our staking contract.

More Detail on UNSTAKE

In between now and the start of the next month you can adjust your stake amount by clicking “STAKE” or “UNSTAKE”. When you UNSTAKE, that is an election to “remove my stake”, it doesn’t return the CVY to you until the end of the current month. Reason being, is if you are having a bad month and think you may go bankrupt, your first idea would be to UNSTAKE, but we can’t let you do that, so we wait until the end of the month to release the UNSTAKE back to you.

One Time Incentive To Stake in February

To reward our early adopters, Covey is going to match every CVY staked with one additional CVY at the end of February. Meaning if you stake 10 CVY by the end of February we will grant you 10 CVY. These rewards are coming out of the Covey IO Corp ownership of tokens to incentivize staking, they are not from grants or from future community payouts. We will only be doing this for the first month of staking.

Questions

Oof, show me instead of telling me?

Why doesn’t staking take effect in the current month?

Imagine you are having an amazing month, and you want to increase your CVY rewards, if we let you STAKE more CVY that wouldn’t be fair because you are staking after seeing your performance. So we consider your stake balance in the current month based on your amount staked at the end of the last month. Give us your conviction before we see your performance please!

What If My CVY Are On Ethereum, How Do I Stake Them?

Staking can only occur on Polygon to save you transaction fees. We admit, we should have been paying your CVY on polygon this whole time, we had hoped to keep staking and tokens exclusive to ethereum but the fees have not come down as much as we had hoped post the merge to Proof of Stake. To make up for it we are offering 1:1 matching to every CVY staked in February. Here is how to get transfer (bridge) CVY tokens from ethereum to polgyon:

1. Go to polygon bridge: https://wallet.polygon.technology/
2. Select ethereum to polygon
3. Select polygon plasma proof of stake
4. Click the token you want to add by searching for CVY (make sure toggle is on for the “bridged token list”)
5. Add CVY token
6. Enter an amount you want to bridge
7. Confirm in metamask
8. Wait 15–20 minutes

If I Don’t Stake Can I Still Participate in Monthly Rewards?

Yes, you can participate and earn tokens. You are at a disadvantage but we designed the Alpha Algo to be sure you can shine despite not having any CVY staked. Once you earn your first CVY be sure to stake and increase future rewards.

How Can I Lose CVY if I Stake?

You can only lose your CVY if you stake AND go bankrupt. Once you stake any CVY if you go bankrupt we take your CVY and add them to the future reward pool.