CAIREPrice

(CAIRE)

The Annual Percentage Yield (APY) for staking CAIRE is variable, fluctuating based on liquidation events and CAIRE token emissions. During calm market periods, it can be single-digit, but in times of high volatility, it may reach significantly higher, even triple-digit percentages. This dynamic nature means the staking returns can change considerably, reflecting market conditions and protocol activity.

While CAIRE has undergone audits by security firms, all DeFi protocols inherently carry risks. These include potential vulnerabilities in smart contracts or economic exploits. Users face risks such as the possibility of losing staked CAIRE through unintended smart contract interactions or by signing malicious wallet permissions. Thorough personal research and vigilance are always recommended when participating in DeFi activities.

Staking rewards for CAIRE are typically generated from protocol emissions and, in some cases, a portion of the protocol fees. It's important to note that these rewards do not compound automatically. To increase their staking position and benefit from compounding, users must manually claim their accumulated rewards and then re-deposit them into the Stability Pool. This active management is necessary to maximize returns.

CAIRE functions as the project's liquid governance token, allowing holders to participate in protocol decisions. In contrast, veCAIRE, or vote-escrowed CAIRE, is a non-transferable token that represents voting power. Users obtain veCAIRE by locking their CAIRE tokens for a specified period. This mechanism is designed to incentivize long-term commitment and active governance participation by providing enhanced influence within the ecosystem.

The ability to unstake CAIRE depends on whether a lock duration was chosen during the staking process. If CAIRE is staked without a specified lock duration, unstaking is usually possible at any time, though it might involve a short unbonding period. However, if a lock duration was selected, the funds will remain illiquid and inaccessible until that predetermined period concludes.

To ensure a smooth staking experience, users should avoid several common pitfalls. These include using the incorrect blockchain network, interacting with fake or phishing websites, neglecting to approve necessary transactions, ignoring gas fees for operations, choosing an unsuitable lock duration that impacts liquidity, allowing earned rewards to sit idle without compounding, neglecting participation in governance, and compromising their private keys.