Don-key Finance Sponsored Farms FAQ

  1. What are Sponsored Farms? Sponsored Farms allow investors to deposit single assets and farm them for a guaranteed weekly return.
  2. How are the profits paid out? Profits are given out entirely in the form of $DON token rewards, while the initial investment always remains in the native token (i.e BUSD) and is never converted to $DON. Only the profits are converted to $DON right before they are harvested.
  3. What determines how much APR investors get? Tier levels determine how much APR investors earn in a given week. The higher the tier, the more an investor will earn in APR each week. To learn more about Don-key’s tier system, click here.
  4. Do Sponsored Farm’s weekly APRs change at a specific time? Yes, Sponsored Farm APRs update every Monday at 12:00 UTC.
  5. What if the investor does not harvest rewards before APR rates change? Nothing happens. Weekly profits are automatically saved and locked in smart contracts; so there is no need to harvest and withdraw before APR rates change.
  6. What tokens can be invested in Sponsored Farms? Currently investors can deposit in BUSD, CAKE, and WBNB; but many more tokens will be added soon.
  7. Do Sponsored Farms have any fees? Sponsored Farms only have a 0.5% entry fee to pay all gas costs, swapping and bridging associated with the farming strategy. Sponsored Farms do not charge the 5% farmer and 5% platform fee.
  8. How does Don-key guarantee weekly APR? Don-key is able to guarantee weekly profits by analyzing past performance in order to predict short term weekly farm returns. Generally, Tier 0 earns the equivalent of or slightly less than the real APR that the farm generates, while higher tiers earn additional rewards from Don-key’s treasury.
  9. What is Don-key’s tier based staking system? Beyond LP staking, tier based staking gives community members access to many perks and rewards according to how much $DON they stake. Among these perks, Sponsored Farms give out extra token rewards according to the tiers above.
  10. What if the $DON price increases or decreases while farming profits accrue? $DON Farming rewards are pegged to the U.S. dollar, changes in the $DON token price do not affect investor returns. If, for example, the $DON price decreases, then the investor will simply earn more $DON so that the profit dollar value is maintained at the time of withdrawal.
  11. What if native token price (i.e $CAKE) increases or decreases while farming profits accrue? Native token price changes will impact user investment. If for example $CAKE’s price doubles while an investor is in a Sponsored Farm, then the value of his investment will double. Each week guaranteed APR is calculated according to the current price of the native token, ensuring that investors have a clear and intuitive understanding of Sponsored Farm profitability.
  12. Is the initial deposited investment exposed to the $DON price? No, neither initial deposit nor profit is exposed to $DON price. Initial investments are never converted to $DON and profits are pegged to the U.S. dollar.
  13. Do Sponsored Farms auto-compound? While Don-key automatically compounds the invested native token in order to generate the highest possible APR, $DON rewards are not compounded. Investors can manually compound them by harvesting and reinvesting them but will have to pay the 0.5% entry fee each time that they redeposit. Read below for a deeper explanation as to why harvesting and reinvesting equates to additional compounding.
  14. Why did my staking rewards disappear? Whenever you join or increase your investment in a Sponsored Farm, $DON rewards are automatically harvested.
  15. What is Don-key’s unstaking policy? Investments are claimable within a max period of 24 hours in order to streamline investment cycles, while $DON rewards are claimable on the spot. However, staked $DON tokens within the tier system have a 14 day cool off period after unstaking.

Differences Between Sponsored Farms and Community Farms

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social trading meets yield farming