Game Plan
How to Maximize Profits & Yield
Whether staking or providing liquidity, knowing Medieval's economic phases is crucial for balancing returns & risk. Here are phase-specific strategies:
The Inception - The Early Bird Gets The Worm
During the inception phase, users can stake blue-chip assets and partner protocol tokens to earn $SHIELD tokens and bootstrap the protocol & liquidity. This is how you can build your $SHIELD positions without much risk. The Inception Event is designed for high rewards, with low risk. User's can also add liquidity to SHIELD/SCUSD, and earn $SHIELD faster, while strengthening liquidity and building a foundation for the protocol.
Growth Phase (Expansion)
During this phase, multiple earning opportunities open up:
Camelot Farms: Stake liquidity pairs like SHIELD/SCUSD and KNIGHT/SCUSD to earn $KNIGHT rewards.
The Colosseum: Stake $KNIGHT to earn $SHIELD at rates determined by market conditions and our team.
This is where different strategy comes into play, based on your own personal risk management and tolerance. After strategically running through different scenarios and through testing, we recommend the 50/25/25 strategy. Where 50% of your allocated resources to the protocol are in SHIELD/SCUSD in the Camelot farms, 25% is allocated to KNIGHT/SCUSD, also in farms, and 25% in $KNIGHT single staking in the Colosseum.
We strongly recommend taking profits regularly. We recommend selling at least 33% of your $KNIGHT emissions to balance personal gains with protocol health & sustainability. When $SHIELD is over-peg, sell some $SHIELD you earn from the Colosseum. This is actually healthy and prevents oversupply and stabilizes the protocol. We recommend reinvesting $SHIELD rewards from the Colosseum into the Camelot farms to reduce volatility exposure. If everyone participates, and follows the outlined strategies, we are fueled for success.
Shrinkage Phase (Contraction)
During shrinkage, $SHIELD falls below its peg, and protocol emissions weaken:
The Colosseum will stop minting $SHIELD. You may want to reduce exposure to $KNIGHT staking temporarily.
*WARNING: $KNIGHT will be very illiquid during the shrinkage phase, only dip your toes in if you honestly believe in the protocol's recovery. If the shrinkage phase persists, rebalance holdings and take profits as needed.*
Stability Phase - Ideal Health & Sustainable Growth
When $SHIELD trades above 0.9 $scUSD but below 1.1 $scUSD, we are in stability and this is very healthy for the protocol. Emissions will remain ideal & consistent during this phase. Just be on high alert, monitor the market, since we could easily enter shrinkage or growth phases.
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