Do I have to Wrap wMemo?

Support
1

I started to stake TIME about a month ago. I was thinking to hodl it for long time (as calculator shows rewards) and didn’t care about the price. But when I check the website now I noticed that it changes and everybody talk about wMEMO. I have no tax issues but even so do I have to wrap wmemo? What are benefits? May I only continue to hodl/stake time as memo?

2

The benefits of wMEMO is that you can swap it for MIM directly on SushiSwap when the time will come for you to sell.
I don’t think it will be a problem if you keep it as TIME, but when you will want to exit, you will have to wrap it into wMEMO since i don’t think there is (or will be) liquidity for TIME. They moved the liquidity from TJ to Sushi.

So, going forward, the general direction is towards wMEMO.

3

Thanks a lot. By the way after i wrapped to wmemo may I continue to staking with my wmemos?

4

There is no staking for wMEMO. wMEMO is like any other coin, you can keep it in the wallet. Its value however grows the same as you were staking TIME.

This analogy has been used to death, so i will use it too:
Imagine wMEMO as a huge cookie jar from which you own a little piece of that jar. Cookies are added in the jar constantly, thus the value of the jar and subsequently the piece of jar that you own, grows exponentially. Basically, (TIME staking) = wMEMO.

5

Now I am confused by your “analogy”:
As it is stated in the papers, there will be NO cookies added to the jar. Instead, pieces of the cookies in the jar will broke out, just the system will count it as a piece of a new cookie. However, you will always have the same amount of cookie(pieces) in you jar…

6

So a months later I’ll still have same amount of wMemo but wMemo price will increase?

1 Like
7

So a months later I’ll still have same amount of wMemo but wMemo price will increase?

Yes

1 Like
8

Ok, they multiply or they are added, doesn’t matter, the number is increased.

9

This thread has been moved to the Support category.

10

I still don’t get if there’s any advantage of wrapping (besides taxes) versus staking Time. OR better, if there’s any disadvantage of staking TIME versus wrapping MEMO. Can you kindly help me understand? My fear is that TIME price will go down, wMEMO will go up, hece I’ll need more TIME to buy 1 wMEMO. Does that make sense? Thanks!

11

Well hopefully you have MEMO and not TIME.

In the end, wMEMO will have more utility, you will be able to use it for things like the revenue share. Some people use it right now on other chains to stake it and earn other reward.

There is no disadvantage in having wMEMO since you can sell it directly now. If you try to sell TIME, the liquidity are somewhat low and you may end up paying extra fees.

12

So I should I unstake Time and then just wrap the memos?
Or as I get Memo rewards just wrap those memos?

13

You keep your MEMOs staked and wrap it to WMemo. After that the rebase will happen within. Quantity of WMemo stays the same, the value of it rises / you gain Memos within WMemo.