You asked, we delivered. Welcome to 'pound town.
Compounding LOOKS, that is.
Stake your LOOKS now in the LOOKS Compounder to automatically compound WETH rewards into LOOKS tokens.
At the time of writing, over 45M LOOKS ($120M USD) have already been staked in the LOOKS Compounder, which is about 15% of all staked LOOKS, and it’s growing fast!
How does it work?
At a very basic level, the LOOKS compounder harvests the WETH rewards that you would have earned, buys LOOKS with the WETH, and then restakes the LOOKS for you (which are also auto-compounding), so you can earn even more LOOKS!
We’ll be adding a more detailed explanation with the technical specifics to the LooksRare Docs site in the near future.
What’s the benefit?
It’s going to save you a fortune in gas fees!
If you were manually compounding your LOOKS rewards by selling the WETH to LOOKS and then restaking it, you’d be paying 3 additional gas fees and a trading fee:
- Withdraw WETH - gas fee
- Trade WETH to LOOKS - gas fee + trading fee
- Stake LOOKS - gas fee
Now, you can just set and forget. The contract will take care of all of that for you.
What’s the difference with the normal staking option?
When you’re using the original staking contract, your rewards are both LOOKS and WETH. With the new compounder, all the WETH you earn is converted to LOOKS. Consider the effect of this rebalancing into LOOKS when you’re analyzing the potential ROI.
Do I need to unstake from the current pool to use it?
Yes, if you would like to use the LOOKS compounder, and you already have staked all your LOOKS, you’ll have to unstake and then restake some or all in the LOOKS compounder.
How often does it auto-compound?
At current, the WETH rewards are being sold to LOOKS and restaked about every 6-10 minutes, but please note that this is likely to vary quite a bit depending on how many LOOKS tokens are staked.
Are there any additional fees?
No, there are no management fees or anything like that. You just need to pay the gas fee to approve the contract, initial stake (deposit) and then unstaking (withdraw)
How is the APY calculated?
The displayed total APY is based on the WETH fee sharing rewards APY and LOOKS staking rewards APR, calculated as follows:
Compounder APY = (1 + WETH APY) \* (1 + LOOKS APR) - 1
How can I see how much LOOKS I’ve earned?
We will be adding this to the site shortly once the dedicated subgraph has synced.
What’s the contract address?
Is it audited?
Yes, you can check out the audit from Peckshield here.