How to Stake Your Winter Bear with NFTX
Earn ETH, sell your bear without a buyer, and fractional ownership!
Yesterday the Winter Bears core team purchased 20 bears from OpenSea to launch a NFTX vault.
Yes, you can now stake your Winter Bear to earn ETH!
Today we’re going to dive into just what that means, how to do it, and what other benefits this vault unlocks.
Why Launch NFTX Staking?
The NFTX vault unlocks five incredible features for the Winter Bears:
- stake your Winter Bear to earn ETH
- sell your Winter Bear without a buyer
- buy a Winter Bear without a seller
- swap one Winter Bear for another
- own a half a Winter Bear, a third, or any other fraction, so that no one is priced out of the community
- using the NFTX vault costs gas
- the yield stakers earn is dependent on trading activity, the more people who swap $BEAR token, the more stakers earn
- when you deposit a Winter Bear into the vault, anyone can come along and buy it, only deposit a Winter Bear you are happy to say goodbye to
- 1 Winter Bear = 1 $BEAR token, regardless of rarity. As such the vault is suitable only for floor bears.
- Staking requires equal amounts of $BEAR and $ETH. Staking one whole bear will require whatever the current price is in ETH as well. You get both back!
Introducing $BEAR token
NFTX allows users to deposit a Winter Bear NFT into a vault and receive 1 $BEAR token. This token is a fungible ERC-20, which means it can be swapped easily, split into fractions, and ‘staked’ to earn ETH.
All the Winter Bears in the vault are available for anybody to come along and buy, but the only way to get one is by getting hold of 1 $BEAR token and redeeming it.
You can buy $BEAR token with ETH from the Sushiswap decentralized exchange, and this trading activity is where the yield stakers earn comes from. Swapping $BEAR for ETH and vice versa comes with a small fee that is distributed to all stakers.
These are the Winter Bears currently deposited in the vault. It costs 1 $BEAR token to redeem a random bear from the vault. Choosing which one you want costs 1.05 $BEAR.
How to Stake Your Winter Bear in three easy steps
- Head to https://nftx.io/vault/0xfd2087bf08ac28749a605bb3a9b8bcda3a3151b6
- Connect your wallet in the top right
- Hit ‘Mint and Stake’ to deposit your bear and ETH
- Sign the transactions prompted by your wallet
This will turn your Winter Bear NFT into 1 $BEAR token, and then stake that $BEAR token for you. As you can see, staking one bear will currently give me 3.71% of all the fees generated, which works out at a yearly yield (APR) pf 5.01%. This figure will change based on:
a) how many other bears are staked,
b) how much trading activity there is.
The more we trade, the more we earn!
If you don’t have a Winter Bear and want to get some exposure within your budget, you no longer need to buy a whole NFT.
Simply go to the Sushiswap $BEAR pool and trade ETH to get as much $BEAR token as you’d like!
Right now 1 ETH will allow me to buy 1.68 $BEAR token.
$BEAR token price trades independently from the OpenSea floor. If you spot a difference between the Winter Bears for sale on OpenSea and the price offered on Sushiswap that’s an opportunity to buy or sell between the two and make a profit!
This is called arbitrage, and when people do this it brings the $BEAR token price back inline with the OpenSea floor.
$BEAR and PieDAO
The NFTX vault is the first step towards Art Club’s partnership with PieDAO, where our community will be paid to manage their NFT index.
That’s because the PieDAO product will be made up of NFTX tokens, which can be redeemed for real NFTs!
Now that we have a bear token, Winter Bears can be included in the index! The more people who stake their bear, the bigger percentage allocation $BEAR can be given in the index!
We’re thrilled to bring this upgrade to our community. Thank you so much to everyone who’s got involved with Winter Bears, you are all truly wonderful!
Don’t forget, the community Town Hall will be taking place in one hour!
Head over to the Discord audio channel to get involved.