Written by Brianna West and Stefan Greybeard
November 2nd was a remarkable day for both CLU and LeonicornSwap. In order to mutually benefit similarly minded communities, CLU partnered with LEOS to offer an exclusive opportunity to trade, stake, and farm between the two cryptocurrencies.
Now, if you’re like me, a total newbie to all this swap/stake/farm talk, then have no fear, your CluChick knows smart enough people who were kind enough to break it down. Our very own StefanGreybeard created an easy-to-follow FAQ sheet, so peruse this informative list and get all your questions answered!
Disclaimer: All information presented in this FAQ is subject to change.
1. What is LeonicornSwap?
LeonicornSwap is a recently launched automated market maker (AMM) decentralized exchange (DEX), founded by Scott Crypto Warrior and Mofassair Hossain.
It offers a small — but growing — number of tokens for trade (including CLU), as well as staking and farming. Its aim is to offer a smoother experience and lower transaction fees compared to competitors like Pancakeswap.
Project Site: https://www.leonicornswap.com/
DEX Address: https://dex.leonicornswap.com/
Telegram: https://t.me/leonicornswap
Discord: https://discord.gg/bG9RqyGKwE
Twitter: https://twitter.com/swapleonicorn
2. How do I use LeonicornSwap?
You use it the same way you use Pancakeswap. Simply point your web browser to the DEX address (above), connect your wallet, and it’s as easy as that. You’ll have the best connection experience if you use Metamask, but any wallet app should do.
Official LeonicornSwap How-To Videos
https://youtube.com/playlist?list=PLGFcqnEu1RBxNJAyKRGuGthSP_zK0sc94
3. Will the LeonicornSwap price of CLU affect the Pancakeswap price?
Not directly, as they each have their own liquidity pool, but it’s likely the prices on both swaps will stay almost in sync, since users can buy and sell on each and between them without barriers.
4. What is staking?
Staking is a general term used to describe loaning your crypto to a service in exchange for lucrative rewards. This can take many different forms.
5. What’s the difference between staking and farming on LeonicornSwap?
Staking: (not yet offered for CLU) available under Caves, permits you to loan a quantity of a token to the DEX, in order to earn APR rewards on it (see #8, below). It is similar to a traditional savings account at a bank.
Farming: available under Meat, refers to liquidity pool staking. This is a service where you stake an equal value of two different tokens to provide exchange liquidity to the DEX for that trading pair. In return you earn both APR rewards, as well as a portion of the fees collected when swaps of that pair are made.
6. What are the risks associated with staking?
Though earn staking is risk free, farming does carry a risk of what is called impermanent loss.
In the simplest terms, farming is all about the ratio of value between two tokens. Impermanent loss occurs when that ratio skews away from an even 1:1.
You don’t experience impermanent loss until you withdraw your staked liquidity, so if the tokens return to their original value ratio before withdrawal, then there is no loss at all. When you withdraw with impermanent loss, you receive fewer of the more valuable token and more of the less valuable one. Thus, the loss is only in comparison to the value of your tokens had you simply held them in your wallet instead.
For a more thorough explanation of impermanent loss, you can check out this excellent article and calculator from WhiteboardCrypto — https://whiteboardcrypto.com/impermanent-loss-calculator.
7. Will my staked CLU be locked up for a period?
No, both earn staking and farming are open staking, so you can reclaim any amount of your staked tokens at any time.
8. What is APR, and why does it seem to change?
APR stands for Annual Percentage Rate, and the listed percentage is the amount by which your staked tokens will grow if you keep them invested for one year without compounding.
The APRs for both earn staking and farming are dynamic and fluctuate with the number of tokens in each staking pool. The more tokens collectively staked in a pool, the lower the rate of return for everyone. Since rewards are distributed with each block written to the blockchain, it’s the APR at that moment that determines the rewards given.
When looking at a specific staking or farming pool on the DEX, you can click the small calculator button to see a summary of what returns you can expect over various timescales, based on the current APR.
9. Will I earn more CLU by staking my CLU?
The current staking offerings reward LEON.
10. What is LEON, and why would I want it?
LEON is the main token of the LeonicornSwap DEX (similar to what CAKE is to Pancakeswap). Most staking rewards on the exchange are currently paid in LEON, and it will be the coin required for a number of upcoming features of the DEX (such as a lottery, and an NFT marketplace).
LEON Contract: https://bscscan.com/token/0x27e873bee690c8e161813de3566e9e18a64b0381
Being a brand-new token with a great amount of utility planned for the near future, LEON is set to offer incredible opportunities. However, you can also exchange it through the DEX’s swap feature for a number of other cryptocurrencies, including CLU.
NOTE: Because LeonicornSwap is a new exchange, is not yet connected to a number of popular crypto chart sites. Currently, the only sites to gather accurate price info for LEON are LeonicornSwap itself and DexGuru. (https://dex.guru/token/0x27e873bee690c8e161813de3566e9e18a64b0381-bsc).
The LEON token is not officially listed on Pancakeswap. Someone created a liquidity pool there a few weeks ago, but it’s so small that it’s highly unstable. DO NOT buy LEON on Pancakeswap unless you want to drastically overpay.
LeonicornSwap, CoinTiger, and Kanga are the only official exchanges for LEON.
11. Will I still receive reflections on the CLU I have staked?
No. Instead, you’ll earn significant rewards that will very likely make up for the lost reflections.
12. Will I have to pay the 10% tokenomics fee to stake or unstake my CLU?
No. The staking pool addresses have been whitelisted, so tokenomics fees won’t be charged when you stake and unstake your CLU. The only cost will be standard Binance Smart Chain BNB transaction fees.
13. Will staking CLU affect my Discord holder rank?
Unfortunately, yes. Staking involves loaning your tokens to the DEX, and though we’ve tried to manually assign holder ranks in the past, the bot always overrides them.
14. How do I stake my CLU for farming?
The process is quite simple, though it involves a number of steps which can be easily viewed in the short videos below. You’ll also need a few dollars in Binance Smart Chain BNB for transaction fees.:
1) How to add liquidity for a pair? — https://youtu.be/Am8xF2g-f6A
2) Add the LP token to your wallet so you can see it later.
3) How to stake your tokens in a farming pool? — https://youtu.be/KYPGukNhy3E
15. Help! I staked my CLU, and now it’s missing from my wallet!!!
That’s normal. When you stake your tokens, they get loaned to the DEX. But don’t worry, they are earmarked as belonging to you and you can reclaim them whenever you want.
16. How often can I harvest my rewards? Can I restake them to compound my gains?
Rewards can be harvested whenever you wish. You will be required to pay a standard Binance Smart Chain BNB transaction fee to do so, so you’ll want to make sure you’re harvesting enough gains to make it worthwhile.
Your rewards (or any additional tokens you buy) can be added to your staking pool at any time. Though in the case of farming, you’ll need to add an equal value of both tokens.
Because of the gas fees associated with harvesting and re-staking your rewards, it may not be beneficial to compound every day. To determine your optimal compounding period, you can use a compounding calculator, such as https://compoundornot.com/.
17. How can I unstake my tokens?
Your tokens can be unstaked at any time, which will return them to your wallet. The official how-to videos will step you through the process (see #2, above).
For earn staking, you simply go to Caves and find your staking pool. Then click the minus button to select how much you’d like to unstake, and then click Confirm.
Farming is slightly more complex, as you must first unstake your LP tokens from the farm (under Meat), before you can remove your liquidity (under Trade > Liquidity).
18. I’ve heard about LEOS. What is it and how is it different from LEON?
LEOS is the governance token for LeonicornSwap, meaning holders of it will get a say in decisions relating to the DEX based on the amount they hold. It was launched a few months ago and has a very limited supply. You can find more information on the difference between LEOS and LEON on the LeonicornSwap project website linked in #1 (above).
For more detailed descriptions of the features of LeonicornSwap, how they work, and what risks are associated with using them, please see:
LeonicornSwap DEX Guide
https://drive.google.com/file/d/1-SkiwyiLKMYUXqx5f9ee2tLZkOw3uUOL/view?usp=drivesdk
So, what are you waiting for? Now’s the time to start farming and making the most out of your CLU and LEON.
As always, remain vigilant in our Discord and on our Twitter to ensure you’re following the best practices for everything done inside our community. Our staff, social media, and Discord channels are filled with a wealth of information, and honestly just a great place to chat with other crypto-crazy aficionados like yourself.