Yield Farming
When innovation meets passion and when we mix the hottest topics in the cryptocurrency market, NFTs (Non-Fungible Tokens) and Yield Farming, the result is the most ingenious NFT-based Yield Farming program.
At Equalizer, we’ve designed the most innovative NFT-based yield farming program. Thus, users are no longer exposed to market volatility as they can trade their position at any time. DeFi projects, on the other hand, are no longer exposed to the liquidity depletion risk as positions can be traded without removing the assets.
Alice, our cryptocurrency professional, deposits her assets to one of the listed Vaults on the Equalizer App. Now she has in her wallet the LP token minted by the Vault. Based on the amount of LP tokens she has in her wallet, she will start to earn a proportional fee from each flash loan performed with the respective vault. She has the freedom to withdraw the assets she deposited at any time.
To ensure stable liquidity in the vaults, using the LP tokens, she now has the option to stake them in the NFT yield farming program. In return, she receives two NFTs: a principal NFT and a yield NFT. The value of the principal NFT is that of the LP tokens deposited in the yield farming program. The value of the yield NFT is that of the reward earned by the deposited LP tokens.
At the end of the yield farming program, Alice can burn the principal NFT to collect the LP tokens she deposited and she can burn the yield NTF to collect the yield (reward) she earned by staking the LP tokens for a certain amount of time.
Furthermore, Alice can always trade her NFTs if she needs the funds she deposited, she wants to exit the yield farming program or she wants to liquidate her position. This way Alice is no longer subject to market volatility while the DeFi project is no longer exposed to liquidity depletion risk.
Investor benefits:
- Investors can trade their position (by trading their NFTs) any time without withdrawing the deposited assets
- Investors can liquidate their position or exit a yield farming program by selling their NFTs
- Investors are no longer subject to penalties if they exit the yield farming program by trading the NFTs
- Investors can enter an already finished yield farming program by buying the available NFTs from other early investors
- NFTs can be traded in any NFT marketplace, as they follow the EIP-721 NFT standard
At Equalizer, we are starting a novel, dynamic and attractive NFT yield farming program where investors can:
- Stake a wide range of LP tokens and receive principal and yield NFTs,
- Enter into any open yield farming program,
- Select between staking duration of 1, 3, 6, 9 and 12 months,
- Trade their position any time by trading their NFTs in any compatible marketplace (for example Opensea)
The yield farming reward is proportional to the square of the locking period. For example, if you stake for 12 months, your reward will be four times bigger than the reward you would receive for 6 months staking.
Each vault listed on the Equalizer app will have a dedicated yield farming program with individual APY. This means that some vaults will have a higher APY than others. As the reward pool per Vault will be fixed in EQZ tokens, this means that the APY will be variable and will depend only on the price of the EQZ token. A higher price of EQZ tokens means higher APY.
As the capacity of the vaults is capped, only the investors that managed to get a seat in the vault by providing liquidity will be able to participate in the Yield Farming program. In other words, in the Yield Farming program, only the users having the LP tokens issued by the vaults can participate.
One important thing to mention is that, in the Equalizer Yield Farming program, the impermanent loss doesn’t exist, as the liquidity providing and stacking is done using a single asset. The reward that comes from the flash loans fees is in the same asset and the reward from the Yield Farming program is in EQZ tokens. So the user that manages to have a seat in any of the available vaults can earn two times and no impermanent loss.