Say if I have 100 crv tokens. if I just lock them ... @curvefi

Asked 1077 days ago
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Say if I have 100 crv tokens. if I just lock them for 1 year, I will just get 25 vecrv tokens now, and if I lock for 4 years I will get 100 vecrv tokens now. And staking rewards are distributed to vecrv holders, so more vecrv means more rewards, meaning 100 vecrv will gain 4x staking rewards than 25 vecrv in the next year. But in a year I am able to sell my 100 crv if I just lock for 1 year but am only able to sell my crv in 4 years if I lock for 4 years. And yearn provides all these options in their website and it is auto-compound

asked 1077 days ago

1 Answers

Yes, it is true that if you lock your CRV tokens for four years, you will get four times more VECRV tokens than if you lock for one year. This means that you will be able to receive four times more staking rewards than if you only lock for one year. However, it is important to take into account that you will not be able to sell your CRV tokens until the four-year lock period is over. This means that you will not be able to take advantage of any potential price increases in the CRV token during that period. Yearn provides auto-compounding options which allow you to automatically reinvest your staking rewards into additional VECRV tokens. This means that you can increase your VECRV holdings over time, even if you are unable to sell your CRV tokens due to the four-year lock period. This allows you to maximize your staking rewards over time, while still taking advantage of any potential price increases in the CRV token.
answered 1077 days ago
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Like in this case
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answered 1077 days ago

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