How To Scale Your Rewards

This guide will walk you through how to use your current staking rewards to scale your future rewards indefinitely over time. This method is also referred to as Compounding Interest.

What Is Compound Interest?

As you may already know, when you stake your Pets on the MicroPets Dapp, you will receive rewards based on the staking multiplier provided by the rarity of your Pets. Baby Pets and Basic Adult Pets produce PETS Tokens for rewards, while Evolved Adult Pets produce BNB for rewards. When you go to collect your rewards from either the PETS pool or the BNB pool, instead of just claiming the rewards, MicroPets gives you the option to be able to Reinvest the rewards strategically. This method is commonly referred to as Compounding Interest.

How To Compound PETS Rewards

When you earn PETS tokens from the PETS staking pool, you have 2 options when claiming. Option one would be to claim your PETS rewards before the lockup period is over. Claiming PETS rewards before the lockup period is over will cause you to lose 75% of the rewards you’ve generated. This means that if you had $1000 worth of PETS rewards and claimed them early, you’d only receive $250. However, MicroPets gives you a second option to claim the rewards early as Credit for the Shop, with a generous 10% bonus added on. The PETS tokens that are claimed as “Credit” can only be used in the Shop for Items and Crates. If you had $1000 worth of PETS rewards and you Claim as Credit, you’d have $1100 worth of PETS Credit to use towards buying Crates that are available in the Shop. Once you use your PETS Credit to buy a Crate with a 3D Pet, you can then take that Pet and stake it to earn PETS Tokens or Credit even faster. Every Pet has its own multiplier, so for every additional Pet you stake you’ll earn more rewards.

How To Compound BNB Rewards

After you evolve an Adult Pet, you’ll be able to stake it in the Evolved staking pool to earn BNB rewards. Besides basic BNB transaction fees, there are no fees involved in claiming these rewards. MicroPets gives you the option to ”Reinvest” the earned BNB to get PETS tokens Tax Free. This means that if you had $1000 in BNB rewards, you could “Reinvest” and instead claim $1000 in PETS tokens. After you Reinvest into PETS tax free, the PETS tokens land in your wallet. You can use these tokens for anything, as they exist in your wallet and not as Credit. This includes buying Crates, buying off the Marketplace, and buying Items from the Shop. More PETS tokens means more Crates, which leads to a higher staking multiplier. As a result you’ll generate even more rewards over time, and repeating this process is how you’ll compound your earnings from the BNB staking pools.