Cryptocurrency offers quite a few ways to make money. The most common method is also the most overgeneralistic; buy a cryptocurrency that you like and hope the price goes up dramatically.
Evolution of Yield Farming
Yield farming has emerged as one of the most popular means of generating passive income when it comes to crypto assets. Explained simply, yield farming is when you lock up a cryptocurrency for a duration of time and in return you earn rewards on your locked up value.
"The major appeal of yield farming in crypto is that it offers considerably higher than average rates. Seeing 100% annual percentage yield (APY) is not uncommon in the space."
- Roland Haggins, Co-Founder
The Sigmadex Difference - Attractive Yields
The Liberty Reward Pool was engineered to balance the SDEX economy in a very unique way. By allowing participants to take on a new type of risk, they have the opportunity to earn much larger rewards through Parameter Override NFTs (PO-NFT). The various smart contract pools are coupled with a penalty curve to ensure capital stays locked for a sufficient amount of time; in doing so the SDEX ecosystem is poised for a sustainable foundation and continued growth while also maintaining mechanics for long term success.
Where can I get these NFTs?
These NFTs can be obtained through several avenues:
- Staking SDEX in certain NFT Farming Pools
These farming pools fill up quickly as demand for these unique NFTs are projected to be much higher
- Injecting and Time-Locking liquidity into certain pairs
To incentivize liquidity staking for lower liquidity or exotic pairs these higher APY reward NFTs will be offered as rewards
- Purchasing through an NFT event or marketplace
These NFTs can be acquired through a third party who already owns one, through an NFT marketplace or via Sigmadex NFT minting event
How does the Liberty Pool work?
- User obtains a PO-NFT with 10,000% APY through an NFT marketplace
- User buys SDEX from an exchange
- User deposits SDEX into the Liberty Pool smart contract while also attaching their recently obtained NFT to override the default parameters
- User acquires rewards relative to their stake at the new APY rate
- Once the pool vesting period is completed, assets + rewards are unlocked for withdrawal
- If the NFT reaches a usage limit, it will self-destruct
Many traditional farming pools have a dynamic APY giving very little incentive to continue staking for the long term. Sigmadex is able to endorse a fixed APY through a limited supply technique. Locked pools with a dynamic APY would not
Although the standard Liberty Pool specifications are still attractive when compared to conventional banking, with the use of PO-NFTs users may capitalize on much higher yield with these special NFT power-ups.
Are 10,000%+ APYs feasible?
APYs this high are typically not sustainable without a balancing component or an additional variable or two to offset. Sigmadex proposes stabilization using a multi-element model involving staking penalties, scarcity and limited use to ensure sustainability for the SDEX token ecosystem. Implementing these opportunities can be healthy for the ecosystem when systematically executed.
These NFTs are only made available when the protocol can absorb it.
Liberty Pool Parameters
emissionDelay- The length of the vesting period for the Liberty Pool
emissionReward- Rewards given out after the
emissionDelaytime has elapsed
penaltyRate- Penalty incurred for removing an early stake
The team at Sigmadex is always looking at ways to improve the products currently available for retail consumers. With every product that we offer there will be a differentiating feature or design that sets us apart from anything else available on any chain. We are visionaries and thrive on adapting to market conditions to ensure that the needs of our customers and community are always exceeded. By adjusting our approach in the face of adversity and realigning our focus towards the future we will always be one step ahead rather than working to catch up to keep pace — we will set the trend.