FAQ's
Frequently Asked Questions from the Community
Token Questions
What is BOOFI? BOOFI is the Avalanche native token of Boo Finance. Contract address: 0xb00f1ad977a949a3ccc389ca1d1282a2946963b0
What is zBOOFI? zBOOFI (zombified BOOFI) is staked BOOFI. It represents a claim to a portion of the staking pool. zBOOFI is an interest-bearing token so its value is always increasing relative to BOOFI. Contract address: 0x67712c62d1deaebdef7401e59a9e34422e2ea87c
What is an interest-bearing token? Most staked tokens are actually interest-bearing tokens. This means that simply by owning them, they are rising in value or gaining interest. In the case of zBOOFI, it is always increasing in BOOFI-denominated value.
Haunted House Questions
What is the Haunted House? The Haunted House is the name of the Contract that governs all of the Boo Finance products. Currently, it is comprised of the Cauldron, Stake, the Well of Souls, Battle, and Boo Council.
What is the Cauldron? The cauldron is an innovative all-in-one solution for yield farming. Regardless of what you deposit (LP, staked tokens, and/or single tokens) or where it comes from (Trader Joe, Benqi, Pangolin, etc), Boo Finance uses them to optimize your returns. Brewers receive zBOOFI as a reward for brewing in the Cauldron. There are no fees associated with staking or unstaking assets in the Cauldron, and no lock-up periods.
Why is zBOOFI a better reward? By receiving zBOOFI instead of BOOFI, brewers are actually receiving an interest-bearing token with its own interest rate. Not only are you getting rewards, but your rewards are also growing. Also since your rewards are staked when you receive them, they start gaining interest from the second they are distributed to you, not just when they're harvested.
What is the Stake? The Stake is simply where you stake and unstake your BOOFI. When you stake your BOOFI, they are placed into the staking pool contract (0x67712c62d1deaebdef7401e59a9e34422e2ea87c). The zBOOFI you receive in return represents your claim to a share of that staking pool. There is no Impermanent Loss associated with staking in the Stake. Note: There is no fee to stake, but there is a Dynamic Withdrawal Fee to unstake.
What is the Dynamic Withdrawal Fee? The Dynamic Withdrawal Fee is a fee incurred when you unstake your BOOFI. It ranges from 1% to 25% of the value you are unstaking. It is calculated based on the percentage of supply that has been unstaked in a rolling 3 day period. As unstaking activity increases, so does the fee. As unstaking activity decreases, so does the fee. This helps to stabilize token price and rewards by encouraging scaling out over time vs mass dumping.
What is Impermanent Loss? Impermanent Loss is something you can experience when participating in a Liquidity Pool. In a liquidity pool that maintains a 50:50 value, as the value of one asset increases or decreases relative to the other, some of that asset is sold or bought to maintain that 50:50 value. Impermanent Loss is the difference between the value you have when you withdraw after pooling liquidity (LPing) vs holding the two tokens independently. Impermanent Loss has a scary name, but is better thought of as the cost of risk management or the cost of participating in an auto-balancing index fund of two assets.
What can zBOOFI be used for? Currently, zBOOFI can be held in your wallet to collect passive rewards. It can also be staked in the Well of Souls to gain additional rewards on top of those shown in the Stake. We are working on additional use cases like collateral for loans and governance for the BOO Council!
What does the APR on the Stake page mean? The APR on the Stake page represents the expected annual increase in value based on the last 7 days worth of data. To get your value increase for the last 7 days, you can divide this number by 52 and you will get a number close to your gain (It's close because there aren't EXACTLY 52 weeks in a year).
I've been staking my BOOFI for a week, why hasn't my zBOOFI balance gone up? As noted on the Stake page, zBOOFI gains PASSIVE rewards. You only realize those rewards when you unstake from zBOOFI back to BOOFI. Example: Suppose you staked 1000 BOOFI on Day 1. 6 months later, you unstake. If the APR has averaged 100% over that time, when you unstake, you will have 1500 BOOFI. That assumes no fee.
What about the Dynamic Withdrawal Fee? Great point! Suppose the DWF is 4.5% when you withdraw. The contract would apply a 4.5% fee to the 1500 BOOFI being withdrawn from the staking pool. 1500 * 0.045 = 67.5 BOOFI as a fee. After the fee, you would receive back a total of 1432.5 BOOFI.
What happens to those 67.5 BOOFI? Those BOOFI get distributed to all zBOOFI holders. It makes each zBOOFI you hold worth just a little more BOOFI.
What is the Well of Souls? The Well of Souls is the end game of the Haunted House. Ghosts can stake their zBOOFI in the Well of Souls to earn additional BOOFI rewards. Unlike the Stake where your BOOFI rewards are passive and you realize your rewards at unstake, these BOOFI rewards are available to Harvest at any point. Harvesting BOOFI rewards places you onto the Top Necromancers List!
What is the Top Necromancers List? The Top Necromancers List is a leaderboard of all the BOOFI harvesters in the Well of Souls. After you have harvested at least 0.01 BOOFI, you will be placed on to the Top Necromancers and given a rank. Harvest more to climb up the ranks!
What do I get for being a Top Necromancer? Aside from the recognition and glory, additional rewards and prizes will be given. Instead of just airdropping tokens and rewards to anyone holding tokens, advantage is given to anyone who uses our platform and more advantage is given to those who use it the most! The possibilities are endless.
How do you determine who gets rewards? There are limitless options. We can choose anything from Top 1000 gain evenly to Top 5 get one amount, Top 100 get a different amount, and Top 421 get another. We could even do all even ranks get a prize if we went really bizarre. Giveaways can be done through the Top Necromancers as well. Suppose everyone gets 1 entry for being a Top Necromancer. Then everyone in the Top 1000 gets another. And then the Top 121 get 2 more. And The Top Necromancer gets 1 more. Again, the limit is only in our creativity!
APR and Rewards Questions
There are rewards all over the place! Where do all the APRs come from? All of the rewards are intertwined! This means to get the most rewards, you need to use ALL of the Haunted House dApps! Let's start simply and then get deeper. Refer to the chart below for a visual representation of all of the token flow in the Haunted House.
Where does The Cauldron APR come from? The Cauldron APR is purely from token emissions. These are set so that they will beat competitive farms. The Cauldron APR represents the value of zBOOFI rewards you are getting based on the tokens you have deposited in the Cauldron. It's calculated based on three different APRs.
Emissions APR - This represents the value of the zBOOFI rewards given directly to the user based on the tokens deposited into the Cauldron. This is the APR a user would compare their rewards to over the course of less than a day because zBOOFI has not had a chance to grow.
Growth APR - This represents the amount that zBOOFI grows over time. This is the same APR from the Stake page.
Composite APR - This represents the value of the zBOOFI Emissions APR growing at the zBOOFI Growth APR. This is the value displayed to demonstrate the true power of receiving interest-bearing rewards. This is determined using a Uniform Series Compound Amount Equation.
If Composite APR compounds, isn't that APY? No. APY assumes that you harvest and restake your reward once daily. Composite APR yields the same return whether you harvest daily, weekly, monthly, or even once per year. That's the power of interest-bearing rewards!
So what is the APY then? The APY is calculated from the Emissions APR harvested once per day and restaked back in the cauldron. This number is difficult to accurately predict because for LP, this could involve unstaking, converting to two different tokens, then restaking which could cost more in gas than your reward. You gain more rewards by leaving it as zBOOFI and staking in the Well of Souls.
If the Cauldron rewards are from token emissions, where do my LP rewards go? They go to many places. Refer to the chart above for a visual depiction of the flow. When you stake an LP in the Cauldron, Boo Finance takes that LP and uses it to find the maximum yield from it. The LP is then staked wherever we can get the best yield (Trader Joe, Benqi, Banker Joe, Curve, etc). Every time there is a cauldron deposit, withdrawal, or harvest for that token, rewards from that LP are harvested (referred to as “Cauldron Contract Rewards”). A majority of those rewards are then converted in the open market to BOOFI. The rewards that are not converted are sent to the treasury. Those BOOFI that are converted are distributed to a couple places. Some go to the staking pool, some go to the treasury, and the remainder (a vast majority) go to the Well of Souls.
Where does the Stake APR (zBOOFI Growth APR) come from? The Stake APR represents the APR of zBOOFI relative to BOOFI. It is based on the amount of BOOFI being distributed back to the staking pool. This comes from the Dynamic Withdrawal Fee and from a small portion of the Cauldron Contract Rewards. This APR does not increase the quantity of zBOOFI you have, just the value of the zBOOFI relative to BOOFI.
Where does the Well of Souls APR come from? The APR in the Well of Souls represents the amount of the BOOFI rewards you get with respect to how much zBOOFI you have staked in the Well of Souls. It is representative of the liquidity weighted average of the cauldron-generated rewards that are converted to BOOFI. This APR will fluctuate with the yields across the Avalanche Ecosystem.
Miscellaneous Questions
What can I do with BOOFI? Currently, you can pool BOOFI with other assets like AVAX on exchanges like Trader Joe. Those LP tokens can be brewed in the Cauldron for massive zBOOFI rewards! These rewards accrue over time. You can also stake them in the Stake for zBOOFI immediately.
What can I do with zBOOFI? Currently, you can either hold zBOOFI in your wallet or you can stake it in the Well of Souls for additional BOOFI rewards. We are working on more use cases for it such as collateral for loans and governance in the BOO Council.
What's the best way to use Boo Finance? We recommend using as many of the elements in the Haunted House as possible. Many ghosts have found they prefer 25-50% staked in the Stake with the remainder in BOOFI/AVAX LP brewing in the Cauldron. This gives ghosts a solid starter balance of zBOOFI so they can get onto the Top Necromancers List quickly but also capitalize on the best rewards in the Caudron where they can grow their zBOOFI balance over time.
If I stake my zBOOFI in the Well of Souls, do I still get the Stake APR? Yes! Even though it is staked in the Well of Souls, your zBOOFI is still gaining passive BOOFI rewards! You're also getting harvestable BOOFI rewards on top of that! Simply add the Stake APR from the stake page to the Well of Souls APR to get your combined APR.
Does Boo Finance have a treasury? Yes. A small portion of the Cauldron Contract Rewards goes towards funding this treasury. What will the treasury be used for? In the beginning, it will be used to provide liquidity for BOOFI on exchanges until the community has established sufficient BOOFI liquidity. It will also be used for partnerships, giveaways, and Top Necromancer Rewards.
Who controls the treasury? Currently, the treasury is controlled by the Boo Finance team. After the Boo Council is established, the zBOOFI holders will have control of the treasury and can determine through voting what will be done with the treasury.
Did the team get a pre-mine or special allocation? The team does not have any pre-mine or special allocation. The token was fairly launched on the Penguin Finance Launchpad. Any BOOFI the team acquired was through participation in the IDO or bought on the open market like any other person.
I staked more but my rewards disappeared! Where did they go? All of our deposits and withdrawals also harvest rewards at the same time. Your rewards should be safely in your wallet.
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