KARMA Staking

The Karma Token

Karma is a yield bearing token within the OmniDex protocol and rewards medium-term investment by paying interest on deposits.

Investors can receive Karma by depositing CHARM into the Karma Pool. Interest payments are continuously paid into the pool in CHARM and are automatically compounded by the contract. The impact of this strategy is to continuously increase the value of Karma with respect to CHARM. Thus, when the investor decides to repay the Karma in return for CHARM they receive more CHARM than was originally deposited.

Karma is a fully exchangeable ERC20 token and can be traded in the same way as all other ERC20 tokens. This also provides for future utility and earning opportunities for the Karma token.

The Value of Karma

When a user deposits CHARM in the KARMA pool, the amount of KARMA they receive is based on the amount of CHARM that is already in the pool and the current total supply of KARMA. Similarly, when a user chooses to redeem their KARMA and withdraw from the pool, they will exchange their KARMA for a share of the pool at the time of redemption. The longer the user participates in the pool the greater the amount of interest will be accrued by the pool and therefore the greater the overall profit.

Example:

• Alice is the first to deposit in the CHARM pool, she deposits 100 CHARM and receives 100 KARMA as the initial ratio is 1:1.

• Over time the pool earns an additional 25 CHARM from interest payments. Now the pool contains 125 CHARM yet the total supply of KARMA is still 100. The ratio is now 1 KARMA: 1.25 CHARM, and Alice can redeem her 100 KARMA for the 125 CHARM at any time, based on that ratio.

• Bob then comes along deposits 100 CHARM to the pool. Since the ratio is now 1:1.25, he receives 80 KARMA (100/1.25 = 0.8). Now the total pool is 225 CHARM and the total supply of KARMA is 180 maintaining the same ratio (180/225 = 0.8).

Trading Karma

Karma can be bought and managed here.

As a standard ERC20 token investors can use KARMA just as any other ERC20 token. There won't be an official trading pool, but anyone is welcome to make one.

Users should bear in mind that as a liquid staking token, you will need to exchange Karma in order to redeem the original CHARM and the associated rewards. Therefore, you will need to have Karma in your wallet to do this.