Fund

The Fund of DUM

You will get sDUM in a ratio of 1:1 in return by staking your DUM in official website,. After that, your sJUB balance will automatically increase in each period according to the current APY. When you revoke the staking, you will burn your sDUM and get the corresponding DUM. Cancellation of pledge will confiscate the recent sDUM appreciation of the pledgor as the withdrawal fee.

What is a Rebase?

Rebase is a mechanism by which your staked DUM balance increases automatically. When new DUM are minted by the protocol, a large portion of it goes to the stakers.

What is APY?

APY stands for annual percentage yield. It measures the real rate of return on your principal by taking into account the effect of compounding interest. In the case of DUM, your staked DUM represents your principal, and the compound interest is added periodically on every epoch, thanks to the Rebase mechanism.

One interesting fact about APY is that your balance will grow not linearly but exponentially over time! Assuming a daily compound interest of 2%, if you start with a balance of 1 DUM on day 1, after a year, your balance will grow to about 1377 DUM.

How to compound funds?

The platform will automatically compound. Once you participate in the staking of DUM via Dumbo, the balance of DUM staked by you will automatically generate compound interest in each Epoch. The increased balance comes from your rebase reward.