What exactly does “principal protection” mean in AIA staking?
@DeAgentAI’s latest moves over the past couple of days: the $AIA /KRW trading pair has been added to Bithumb and is now live, while the official website has also launched principal-protected staking.
Listing on an exchange is easy to understand. What people really want to know is how such a high 50% return is calculated, and how the principal is protected.
Staking rules:
A few important points to understand:
▰ The protected amount is in USDC, not the original AIA
When you participate, you pay in USDC on BNB Chain. The system uses the real-time price to buy and stake AIA. The lock-up period is 12 months, and you can’t withdraw early.
At maturity, the platform will return the same amount of USDC as you initially paid, in accordance with the terms. You’ll receive AIA rewards during the lock-up period.
Here’s the key point: the AIA originally purchased and staked will not be returned. You don’t get both your USDC back and your original tokens at maturity. Also, you can’t stake AIA you already hold—you must purchase AIA through the program.
▰ 50% is a reward based on the amount of AIA, not an annualized return denominated in USDC
Suppose you pay 1,000 USDC and the system buys and stakes 10,000 AIA. If you choose the Ultra pool and receive 5,000 AIA in rewards over the full term, you’ll get 1,000 USDC back at maturity, in accordance with the terms.
The value of those 5,000 reward tokens depends on the token price.
So when you see “up to 50%,” it doesn’t mean you’re guaranteed to earn 500 USDC on a 1,000 USDC deposit over one year.
▰ Three pools, with different reward rates and start dates
1> Ultra: 50% in rewards over the full year, starting in month 3
2> Boost: 40% in rewards over the full year, starting in month 2
3> Fast: 35% in rewards over the full year, starting in month 1
Rewards are then distributed automatically in batches according to the rules.
All three pools have a 12-month lock-up. The only difference is when the first reward is distributed.
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Most important of all: principal protection is the platform’s commitment to return USDC in accordance with the terms. It does not mean there is no risk that the platform may fail to meet its obligations, or no smart contract risk.
Think carefully in advance about whether you can wait a year to access your funds, and whether you might need the money during that time.
Before staking, make sure you understand the rules and assess the risks before deciding whether you’re comfortable locking up this money for a year.
#AIAStaking
@DeAgentAI’s latest moves over the past couple of days: the $AIA /KRW trading pair has been added to Bithumb and is now live, while the official website has also launched principal-protected staking.
Listing on an exchange is easy to understand. What people really want to know is how such a high 50% return is calculated, and how the principal is protected.
Staking rules:
A few important points to understand:
▰ The protected amount is in USDC, not the original AIA
When you participate, you pay in USDC on BNB Chain. The system uses the real-time price to buy and stake AIA. The lock-up period is 12 months, and you can’t withdraw early.
At maturity, the platform will return the same amount of USDC as you initially paid, in accordance with the terms. You’ll receive AIA rewards during the lock-up period.
Here’s the key point: the AIA originally purchased and staked will not be returned. You don’t get both your USDC back and your original tokens at maturity. Also, you can’t stake AIA you already hold—you must purchase AIA through the program.
▰ 50% is a reward based on the amount of AIA, not an annualized return denominated in USDC
Suppose you pay 1,000 USDC and the system buys and stakes 10,000 AIA. If you choose the Ultra pool and receive 5,000 AIA in rewards over the full term, you’ll get 1,000 USDC back at maturity, in accordance with the terms.
The value of those 5,000 reward tokens depends on the token price.
So when you see “up to 50%,” it doesn’t mean you’re guaranteed to earn 500 USDC on a 1,000 USDC deposit over one year.
▰ Three pools, with different reward rates and start dates
1> Ultra: 50% in rewards over the full year, starting in month 3
2> Boost: 40% in rewards over the full year, starting in month 2
3> Fast: 35% in rewards over the full year, starting in month 1
Rewards are then distributed automatically in batches according to the rules.
All three pools have a 12-month lock-up. The only difference is when the first reward is distributed.
————————
Most important of all: principal protection is the platform’s commitment to return USDC in accordance with the terms. It does not mean there is no risk that the platform may fail to meet its obligations, or no smart contract risk.
Think carefully in advance about whether you can wait a year to access your funds, and whether you might need the money during that time.
Before staking, make sure you understand the rules and assess the risks before deciding whether you’re comfortable locking up this money for a year.
#AIAStaking