How To Benefit From RUG & The DAO?
The main benefit for stakers comes from supply growth. The protocol bonds new RUG tokens from the treasury, the majority of which are distributed to the stakers. Thus, the gain for stakers will come from their auto-compounding balances, though price exposure remains an important consideration. That is, if the increase in token balance outpaces the potential drop in price (due to inflation), stakers would make a profit.
The main benefit for bonders comes from price consistency. Bonders commit capital upfront and are promised a fixed return at a set point in time; that return is given in RUG tokens and thus the bonder's profit would depend on RUG price when the bonded RUG matures. Taking this into consideration, bonders benefit from a rising or static price for the RUG token!
Copy link