After creating a Connect Financial account, you can commit tokens at a USD equivalent value to qualify for one of five membership tiers, each with increasing benefits including additional rewards and lower fees.
By using a USD equivalent number of tokens, the cost of entry to the Connect Financial ecosystem remains sustainable and predictable for future users, as the token price is not a factor when staking.
Staked tokens (USD equivalent)
What happens if CNFI tokens appreciate in value?
If CNFI tokens appreciate in value, you may find yourself in a situation where you have a higher value of tokens than required to maintain your membership level. In these cases, you are able to 'rebalance' your staked amount once every 180 days.
A 7 day rolling average token price is used to determine the amount of CNFI you can withdraw from your staking wallet.
For example, on January 1st CNFI trades at 50c per token. In order to qualify for a Gold membership tier, 15,000 CNFI are committed. On June 1st, the price of CNFI has risen to 75c. In this case, you could rebalance your staked amount and withdraw 5,000 CNFI tokens and still maintain your Gold membership tier.
What happens if CNFI tokens depreciate in value?
Once you have staked sufficient tokens for a membership tier, you are locked in to that tier.
Even if the value of CNFI was to depreciate, you would not be required to stake more tokens to maintain your membership tier.(it might be a good time to upgrade to a higher tier, however!)