FAQ

Getting Started

1.“Generally speaking, what's the easiest flow to follow for compounding rewards?”

The following is NOT FINANCIAL ADVICE. It is for education and entertainment purposes only.

There are countless strategies, and which one you choose depends on your risk tolerance and short, medium, and long-term goals. That being said, the "plug-and-play" method is detailed below. Also, take some profits along the way. Don't get too greedy.

If $ROCKET is OVER the peg:

-Buy $ROCKET and pair it with $FTM to provide liquidity, and stake your ROCKET-FTM LP in the farm to earn $SROCKET rewards. -Take your $SROCKET rewards and stake them in the Factory to earn inflationary $ROCKET rewards. -Sell half of your earned $ROCKETfor $FTM, and compound it back into the ROCKET-FTM LP. -Profit!

If $ROCKET is UNDER the peg:

1.Buy or use your farmed ROCKET and exchange it for $RBOND. If you are LP'ing, you can break the LP to exchange $ROCKET for $RBOND, and use the remaining $FTM to buy $ROCKETto also exchange for $RBOND. Now you have a big fat bag of $RBOND, to exchange for $ROCKET at a bonus rate once it's above peg and you've also helped bring $ROCKETback above peg so that the Factory can resume printing.

2.Sell $RBOND for a redemption bonus once $ROCKET is back over peg (above 1.01 TWAP).

3.Profit.

2. "What is 50/50?"

50/50 is the method best suited to provide stability for both the platform and for your underlying investment. By boosting liquidity, the 50/50 strategy reduces price volatility, and helps $ROCKET stay above the peg for longer to keep the Factory printing. This, in turn, attracts new investors and keeps the ecosystem growing. 1)When you claim your $ROCKET rewards in the Factory, sell 50% of them for $FTM. 2)When you go to provide ROCKET-FTM LP, stake the entirety of your remaining ROCKET with the $FTM you've just purchased.

3."APR is much higher in the Boardroom than in the farm for ROCKET-FTM LP. Why would I not just invest everything there?"

The farm APR is linear and prints 24/7, regardless of ROCKET's relation to the peg. Factory, on the other hand, prints only when ROCKET's TWAP is above 1.01. Therefore, it may not always be that an investor gets a higher return from the Boardroom than from the ROCKET-FTM pool. Because $ROCKET follows the price of $FTM, the ROCKET-FTM LP is akin to holding $FTM in your wallet, except with the bonus of a high farming APR on top of it. In other words, if you're bullish on $FTM's price action, the ROCKET-FTM LP is a way of holding exposure to that single asset while also reaping high APRs.

Terms and Mechanisms

1. "What is an expansionary epoch?"

An expansionary epoch is the amount of $ROCKET that is printed by $SROCKET in order to increase the total circulating supply.

To simplify the explanation with a hypothetical example, let’s say an epoch is 3 days long and there are $100 dollars in the circulating supply.

If the money printer grows the supply by 10% of the existing circulating supply each day, at the end of the 3 days you'd have 100*1.1*1.1*1.1 = $133.

Then, let’s say the emissions decrease to 5% per day.

You’d then have have $133 *1.05 *1.05 *1.05 = $153 at the end of this second epoch.

2. “What is compounding in the context of ROCKET Finance?”

Earning a return on gains you've already made from previous periods is what is commonly referred to as compounding.

For example, consider a 3% daily APR on an initial investment of $100.

After 24 hours it would grow to $103.

After 365 days without compounding: $1195.

After 365 days, compounding once daily: $4,848,272.

Core Values

1. “I'm invested in the project for the long term, and I feel guilty taking profits. Am I still a team player if I move profits somewhere outside of the project?”

Never put all your funds in one basket, even if it's $ROCKET. Always take gains along the way. The ROCKET team views it as a success if, over time, everyone gets their initial investment back into their wallets and continues investing with the profits that come after that.