Cloud PetPrice

(CPET)

The Annual Percentage Yield (APY) for staking CPET is variable, significantly influenced by liquidation events and the emission rate of CPET tokens. During calm market conditions, the APY might be in single-digit percentages, but it can escalate to triple digits or even higher during periods of high volatility and increased activity within the protocol. This dynamic nature means stakers should expect fluctuations in their potential returns.

Cloud Pet has undergone audits by reputable security firms to identify and mitigate potential vulnerabilities. However, it's essential to recognize that all decentralized finance (DeFi) protocols carry inherent risks. These include potential smart contract vulnerabilities, which could lead to exploits, and various economic risks associated with the protocol's design. Users are strongly advised to conduct their own thorough research and due diligence to understand these risks before participating.

The primary risks for CPET staking include smart contract vulnerabilities and the risk of liquidation events, where your CPET may be converted into collateral. Common user errors to avoid include using the wrong network, interacting with fraudulent websites (phishing), misunderstanding the liquidation process where your CPET balance can decrease while your collateral increases, and neglecting to claim rewards manually, as they do not auto-compound.

No, there is no fixed lockup duration for CPET deposited into the Stability Pool. This offers users flexibility, allowing you to withdraw your staked CPET at any time you choose. The only exception is if a liquidation event is actively in progress; in such a scenario, withdrawal might be temporarily paused until the event concludes, after which you can proceed with your withdrawal.

CPET is the liquid, transferable governance token of the Cloud Pet protocol. In contrast, veCPET (vote-escrowed CPET) is non-transferable and represents voting power. Users obtain veCPET by locking their CPET tokens. Holders of veCPET gain the ability to vote on crucial protocol parameters, such as accepted collateral types and the direction of future CPET emissions, which can also provide a boost to the APY for stakers.

No, CPET rewards do not compound automatically. To compound your position and benefit from additional returns, you must manually perform two steps: first, claim your accumulated CPET rewards from the Stability Pool; and second, re-deposit these claimed tokens back into the Stability Pool. It's important to note that each claim transaction will incur a network gas fee, which should be factored into your compounding strategy.