🤔 Buying or Minting

This is a question

For one intends to take part in the (🦑,🦑) game, he/she must in the first place hold some SGT tokens. There are two ways of getting one's hand on SGT, buying or minting.

Option 1: Buying to (🦑,🦑)

Buying SGT is simple. You can swap for SGT on the listed Dexes, like any other BEP-20 token. This action will make you have direct possession of the SGT tokens in your wallet. You can stake your SGT tokens in the (🦑,🦑) pool and enjoy the passive yield while you sleep.

Option 2: Minting to (🦑,🦑)

Minting is the 2nd way of getting SGT tokens. As introduced in the minting mechanism. In this process, you will sell your cryptoassets or LP tokens, and trade for some predefined amount of SGT tokens that are vested in 5 days. Please pay attention to the discount rate on the UI, as it can fluctuate much according to the SGT market price, bond ratio and other parameters. It is only financially beneficial to you when the discount rate is positive. The discounts, or ROI, will inform you of the possible future yields in 5 days, at the current market condition.

Minting is different from buying in several ways:

1. The minting price (or bond price) is controlled by the algorithm in the smart contracts, and it is not so volatile. While the market price is following the XYK model and is controlled by the buying & selling power, as well as the liquidity depth. Therefore, you may see positive or negative discounts when the market price changes.

2. Minting is like purchasing an SGT bond. The promised SGT will be linearly released in 5 days. The cost is fixed like a futures contract. While buying SGT tokens on Dexes will instantly give you total possession of the token.

3. The minting price does not have slippages, different from buying from Dexes.

4. There are upper limits in minting for safety reasons. One cannot surpass the max amount when minting SGT.

Buying VS Minting

Due to the fact that there is a 5-day vesting period when minting SGT, in other words, the transfer of SGT is delayed like a futures contract, it is reasonable to compare the 5-day ROI from the strategies in between buying-then-staking-for-5-days and minting.

The 5-day ROI of both minting and staking are shown on the UI directly. If the 5-day ROI of staking is higher, it is reasonable to assume that the buying-and-staking strategy will have a higher yield. If the minting ROI is higher, and you assume that the SGT price will remain stable or increase, minting will be more favourable.

Well, there is no absolute right or wrong, as the price of SGT can be volatile and hard to precisely predict. Please do your own research and understand the mechanisms before making any financial moves.