Yield Farming

While staked positions under the form of iNFTs have a wide range of uses, one of their main initial purposes will be to replace classic yield farming mechanisms by receiving MonoSwap incentives.

Yield-bearing NFTs

From a user standpoint, the mechanics have a lot of similarities with DeFi regular farms.

However, instead of allocating rewards to those regular farms, MonoSwap's Master contract distributes incentives to all the staking positions of team-defined selected wrapped LPs.

In other words, it's not because a user owns a staking position that he'll necessarily receive MonoSwap yield incentives: it will only be the case for those selected assets.

Anyone can find the list of incentivized positions on this page.

Once a staked position's LP belongs to those listed pairs, the iNFT starts generating yield with rewards from the Master, as if its owners were actually staking into a regular farm.

Rewards

MonoSwap incentives are in the form of dual rewards: the eligible wrapped MonoSwap LPs will have their matching staked positions and receive both MONO and xMONO.

The share of both rewards in the total varies depending on the asset, with a default set to 80% xMONO / 20% MONO.

Yield multipliers

There are two ways to boost returns from yield-generating staked positions: through locks or through the Yield Energize.

Both values will vary depending on the staked asset, from 0% to 150% (x1 to x2.5), but will usually be set to their default 100% (x2).

The sum of those two multipliers is used to determine the total multiplier of the position. Every pool will have its own maximum boost, with a 200% (x3) default cap and an absolute cap of 250% (x3.5).