I currently have my 1 btc at cro (Crypto.com) my staking contract ends tomorrow 09/11/2020
I want to stake it here but I am worry that prv isn’t updating things all the time
I looked at the shield and assets tap and notice that the price marks aren’t event correct. It’s showing at 8k but everywhere is showing for over 10k
What is the right thing to do?
So Incognito is a sidechain, and all pCoins are backed 1:1 for the original crypto. This means that if you put 1 BTC into the network, you will receive 1 pBTC and can withdraw 1 BTC out of the network at any time. This type of transaction does not involve any change in the amount of BTC you own.
There are a few options you can do, if you are looking to earn on your holdings:
Provide Tab (BTC) - If you deposit your BTC holdings into the provide tab, you are guaranteed to be able to withdraw the same amount that you put in at any time. However the return is variable and subject to change. In fact recently these values are in the process of getting changed (New Provide rates (September 16, 2020)). Your returns are in Incognito’s native currency PRV. This option is highly recommended as the risk is very minimal.
Provide Tab (PRV) - If you exchange your BTC for PRV, and deposit it into the Provide Tab, you will earn a higher return then providing for BTC. However the price of PRV fluctuates and this can increase the risk of the investment. A good rule of thumb to follow is that large crypto dumps increase the price of PRV significantly, and large USDC/USDT withdraws decrease the price of PRV significantly. Another caveat is the fact that the price of crypto in the pDex might be differ from the normal price on outside exchanges. When you exchange BTC for PRV you might be losing on a lot of value. However this creates an arbitrage opportunity which floods stablecoin into the network increasing the price of PRV equaling it out (Read the thread here to learn more).
Adding Liquidity - If you instead choose to add liquidity to the network with the Add Tab, you gain returns off the transaction fees that people trade. With this option you are not guaranteed to be able to pull out the same amount of crypto that you put in. This is due to impermanent losses, and a better understanding of this can be read about here. The previously mentioned Provide Tab is not considered staking. It uses a modified version of this function to give returns.
Staking PRV - Staking PRV in a node gives you a much higher return then any of the other options. However, it requires that you have 1750 PRV. You are required to stake this capital in either a vNode (Virtual Node) or a pNode (Physical Node). This option is very different then using the Provide Tab or the Add function.
As for your concerns about price differences and fluctuations, I recommend using incscan.io to really get a feel of how the Incognito market works. Incognito is still relatively new, and everyone here is actively trying to work out all it’s kinks. The platform is community driven, and anyone is allowed to make suggestions and report bugs.
I don’t know exactly what you mean by this but I think that incognito is constantly updating things, making changes, etc. For example–they just recently announced that the rate you can earn on BTC via PROVIDE tab in the mobile app will go from 9% to 12% in the coming days.
However, you earn in PRV so it’s up to you if you want to earn PRV. However, you can withdraw it anytime and trade it within the app for more BTC, or any other coin you want.
A benefit here is that you can withdraw your liquidity anytime (up to 3 days to process). You don’t have to stake it for a specified period.
Also, you could consider myconstant.com which provides to incognito BUT btc earns in btc. You miss the opportunity for PRV price increases and staking that PRV for 23%/37% APY, but you also eliminate the risk of PRV decreasing in value or BTC increasing in value. Constant has not yet announced if they intend to copy Incognito and pay 12% on BTC or continue paying 9%. It should also be noted that myconstant is a custodial wallet like crypto.com (they hold your coins unlike here in incognito).
I hope it helps. Earning on crypto is very cool.
Price are quoted in PRV instead of USD that’s why you see 8k because PRV price is now 1.20 more or less.
Team is working great and the Incognito Network is still young and can improve a lot compared to big blockchain where they don’t have so much space for improvement!