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Here are some Frequently Asked Questions (FAQs) about veARKEN:
1. What is veARKEN?
veARKEN is an escrowed governance token in the Arken Finance ecosystem. It is not a typical tradable token, but it provides holders with benefits such as profit sharing and the ability to participate in future protocol features and governance.
2. How can I obtain veARKEN ?
You can only receive veARKEN by converting ARKEN tokens in exchange for veARKEN. The conversion process is at a 1:1 ratio.
3. Can I trade or transfer veARKEN ?
No, veARKEN tokens cannot be traded, transferred, or used by any other means than staking on Arken Finance.
4. What are the benefits of holding veARKEN ?
veARKEN holders can enjoy benefits such as profit sharing and participating in the future protocol feature and governance. They can stake their veARKEN to earn rewards from the platform's profit sharing for each Epoch.
5. How does the staking process work ?
You can stake your veARKEN to earn platform profit sharing in the form of USDC. The longer the lock period chosen, the higher the staked power, hence the higher profit share they can potentially earn, with rates of up to 40%.
The reward will be distributed on a 7-days epoch basis, which means you will receive the reward every week until the end of your lock duration.
6. What is the maximum staking period ?
The stake period can be up to 2 years, and the stake period and veARKEN amount can be adjusted at any time. However, every time you increase the veARKEN amount or adjust the stake period, the staking countdown will be reset.
7. What happens after the lock duration ends ?
Your staked veARKEN will automatically unstake within 1-2 weeks after the lock duration ends and you will stop receiving the reward. If you wish to continue earning USDC, it’s advised to visit and manage your stake portfolio from time to time to reset the lock countdown.
8. Is there a penalty for early withdrawal ?
Yes, there will be a 50% penalty in case of early withdrawal.
9. How are the rewards calculated ?
The reward is calculated based on the platform’s fee collection during the 2 weeks preceding the epoch start. The epoch duration is set to 1 week, which means the staking rewards will be distributed once every 7 days.
10. What is the role of ARKEN and veARKEN in the platform's long-term expansion strategy ?
ARKEN and veARKEN are integral components of our platform's long-term expansion strategy. They will be integrated with future protocols to support the ecosystem, enhance token utilities, and provide users with distinctive returns in the upcoming project called "Trustless Fund Management".
11.What happens if the epoch ends but my lock duration is not over ?
Even if an epoch ends, as long as your lock duration is not over, your staked veARKEN will remain in place. You will continue to receive the rewards every epoch until your lock duration ends.
12.Do you have any guideline or walkthrough on how to stake so we can easily follow ?
We have published the full guideline on how to stake and earn the profit-sharing on our Medium. Go check it out here: https://medium.com/@arken-finance/vearken-full-guide-how-to-stake-and-earn-profit-sharing-3547eb23ba84