# Ecosystem

The Petoshi ecosystem is designed to provide users with a variety of ways to interact with their virtual pets and the broader game economy. Here are some key features:

### 1. Staking

#### Overview

Staking is a core feature of the Petoshi ecosystem that allows users to earn rewards by locking up their $PETOSHI tokens. By staking $PETOSHI, users can earn $GIFT tokens, which can be used to purchase in-game items and pets.

#### How to Stake

1. **Connect Wallet:** Connect your compatible wallet to the Petoshi platform.
2. **Select Amount:** Choose the amount of $PETOSHI tokens you want to stake.
3. **Confirm Transaction:** Confirm the staking transaction in your wallet.

#### Rewards

* **Reward Rate:** Staking $PETOSHI tokens yields $GIFT tokens at a rate of 10:1 based on the staked value.
* **Estimated Yield:** The estimated annual yield for staking is 4%.
* **Claiming Rewards:** Rewards can be claimed through the platform interface. A 1% claim fee applies on the Blast network.

### 2. Borrow

#### Overview

The borrowing feature allows users to take out loans in $PETOSHI tokens using ETH as collateral. This provides flexibility for users who want to leverage their assets without selling them.

#### How to Borrow

1. **Collateral:** Deposit ETH as collateral for the loan.
2. **Loan Amount:** Determine the amount of $PETOSHI tokens you want to borrow based on the collateralization ratio.
3. **Repayment:** Repay the loan using $PETOSHI tokens to reclaim your ETH collateral.

#### Terms

* **Collateralization Ratio:** The maximum loan-to-value ratio is 85%.
* **Repay Rules:** Loans can be repaid at any time. Repayment requires the same amount of $PETOSHI tokens plus a 0.1% fee.

### 3. Convert

#### Overview

Conversion allows users to exchange their $GIFT tokens for $PETOSHI tokens, providing a way to access the project token using in-game rewards.

#### How to Convert

1. **Select Amount:** Choose the amount of $GIFT tokens you want to convert.
2. **Conversion Rate:** The conversion rate is 10 $GIFT tokens for 1 $PETOSHI token.
3. **Confirm Transaction:** Confirm the conversion transaction in your wallet.

#### Queue Mechanism

* To ensure fairness and manage liquidity, a daily limit of 10,000 $PETOSHI tokens is available for conversion.
* If demand exceeds supply, a queue system is implemented, with the waiting time based on total demand in the pool.

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