Every Drop Makes Up The DRIP Network Reservoir
You must have heard the proverb “Little drops of water make a mighty ocean”. This is so true and valid, since, the tiniest drop can make a whole lot of difference and that’s what the DRIP Network reservoir is trying to imply!
The DRIP Network Reservoir is a simple way for a pool to get liquidity. Where you can stake BNB in order to gain BNB on every DRIP transaction. Every deposit in the Reservoir helps to keep DRIP’s pricing floor stable.
On depositing some amount of BNB, the DRIP network reservoir roughly offers you an Annual Percentage Yield (APY) of around 60%, which is an excellent figure.
What’s on the Reservoir page?
You can see the total number of coins or drops you own and the stake determines the number of BNBs that have been staked for the reservoir. Your compounds and withdrawals are all listed.
How does it work?
There’s a 10% tax every time you deposit and withdraw BNB (the community grows with the taxes).
Out of the 10%:
- 5% goes into the reservoir rewards pool
- 3% is locked in DRIP liquidity (Raises the floor price of drip)
- 2% is redistributed to all the members of the reservoir
Thus the main purpose of maintaining the DRIP network Reservoir is to uphold and support a stable price point for DRIP. The more liquid it is, the more drops you add to the reservoir, the more you replenish the reserve.
For instance, if the reservoir is worth $100,000, a withdrawal of $50,000 would lead to a massive decline in price and shake the pricing floor. However, if the reservoir was worth $1 million, the withdrawal would barely make an impact and the price would be least affected.
Once you’re in the reservoir
You can treat it similar to the Faucet and can either compound your returns or claim them, as and when you like!
- Claiming allows you to transfer your rewards from the system to your wallet
- Compounding will transfer all your rewards back to the total drops you own and multiply your stake in the pool. The more you compound the bigger your stake is.
Withdrawal from the reservoir
Unlike the Faucet, your deposits aren’t locked here! You can claim the reward and withdraw them if you feel like it! But, it’s best to keep it on the network to reap the benefits of compounding and keep that passive income flowing.
Passive income is the catch here and you definitely don’t want to miss out on that opportunity with your BNBs just lying around in your wallet! Be a part of this community and help your fellow DRIP-pers grow on the DRIP network reservoir.