Reservoir

The Reservoir provides long-term price support for the DRIP token, helps to strengthen DRIP’s price floor, while also increasing permanently locked liquidity. You can invest in the Reservoir by using BNB to purchase the DROPS token on the DRIP NETWORK’s Reservoir link on its community website. DROPS are much less volatile than DRIP so even if DRIP’s price changes, DROPS value will remain relatively stable which makes the Reservoir a lower risk investment.

The Reservoir earns BNB rewards and can potentially provide 100%+ APY, but the main purpose of the Reservoir is to support the price of DRIP, hold the line during bear cycles, help to reach a higher ATH (all-time-high) price during bull cycles, and all the while increasing the price floor of DRIP.

It is our responsibility as a community to invest in the Reservoir periodically. This Reservoir Deposit Plan serves as a standard of what should be deposited into Reservoir per year based on one’s Faucet deposit balance. This is a recommended minimum deposit amount, but investing more than the minimum or more often is encouraged

- Lissanro Rayen (@Lissanro)

Reservoir FAQ's

How does the Reservoir support Drip’s price?

The Reservoir is a liquidity pool for Drip/BNB. The more liquidity there is (i.e., more investment in the Reservoir), the more stable Drip’s price will be.

How do I invest in the Reservoir?

You can invest in the Reservoir by depositing BNB on the Drip website’s Reservoir page: https://drip.community/reservoir

What is the ROI in the Reservoir?

The Reservoir payouts are not static and are subject to the size of your stake percentage in the Reservoir, as well as the daily volume of Reservoir deposits and DRIP/BNB purchases. Historically, Reservoir APYs can vary from 10% to 100%+ depending on your stake size and daily trading volumes.

Where do the Reservoir rewards come from?

1% of all swap fees on the Fountain go to the Reservoir Dividend Pool. Also, there is a 10% tax when depositing and withdrawing from the Reservoir of which 2% goes to all Reservoir depositors, and 5% of that goes to the Reservoir Dividend Pool which distributes daily rewards to all depositors based on their stake percentage.

Is the Reservoir a safe investment?

The DROPS token has relatively low price volatility and pays continuous daily rewards in both bull and bear markets. However, “safe” is a subjective term and you must evaluate your own investment goals and risks.

Can I pull out my investment from the Reservoir?

Yes. You can withdraw your entire investment in the Reservoir but you will be subject to a 10% tax on withdrawals.

What are the gas fees for compounding Reservoir rewards?

Historically, Reservoir compound gas fees are slightly lower than Faucet hydrations, but this can vary widely based on network activity.

When should I compound my Reservoir rewards?

Unlike the Faucet, the Reservoir rewards will vary each day and the percentages earned are not as high. Therefore, it is recommended that you compound only when your accumulated rewards are at least several multiples of gas fees.

Is there any tax on compounding in the Reservoir?

There is no tax to compound in the Reservoir. You only need to pay gas fees.

I have just withdrawn my DROPS from the Reservoir. Why can’t I see the BNB amount in my wallet?

After you WITHDRAW from the Reservoir, you must also then click CLAIM. After you CLAIM, you will see your BNB amount in your wallet.

What is “staked percentage” in the Reservoir?

Staked percentage shows your individual share of the Reservoir contract. The higher your Reservoir share is, the higher your relative rewards will be.

How do I calculate DROPS value?

The easiest method to get the DROPS token price is to go to the Reservoir tab on the Drip website, connect your wallet, and then enter 1 BNB in the "Buy and Deposit" text field. This will produce an estimated value of how many DROPS you will get for 1 BNB after 10% tax. You can use the following formula to calculate DROPS token price: 1 / (Estimated Drops/0.9) = DROPS_Price