Yield Farming

Farming with spNFTs

The primary objective of staked positions in the form of spNFTs is to replace conventional yield farming mechanisms and receive incentives provided by Neutroswap. However, these staked positions offer a versatile range of uses beyond this initial purpose.

Yield-bearing NFTs

From a user's perspective, the mechanics of Neutroswap's spNFTs bear resemblances to regular DeFi farms. However, in contrast to allocating rewards solely to traditional farms, Neutroswap's Master contract distributes incentives to all staking positions associated with team-defined selected wrapped LPs. This approach ensures that incentives are widely distributed across the ecosystem.

To clarify, owning a staking position does not guarantee that a user will receive Neutroswap yield incentives. These incentives are exclusively allocated to selected assets determined by the team. Therefore, only staking positions associated with these chosen assets will be eligible to receive Neutroswap yield incentives.

Once the LP associated with a staked position is included in the listed pairs, the corresponding spNFT begins generating yield. This yield is derived from rewards distributed by the Master contract, effectively simulating the experience of staking in a traditional farm for the owners of the spNFT.

Rewards

Neutroswap incentives are provided in the form of dual rewards, where eligible wrapped Neutroswap LPs enable their corresponding staked positions to receive both $NEUTRO and xNEUTRO rewards.

The distribution ratio of these rewards varies for each asset, with the default allocation set to 80% $xNEUTRO / 20% $NEUTRO.

Yield Multipliers

There are two methods to enhance returns from yield-generating staked positions: utilizing locks or the Yield Multiplier plugin.

The specific values of these enhancements vary based on the staked asset, ranging from 0% to 150% (x1 to x2.5), although the default is typically set at 100% (x2).

By summing these two multipliers, the total multiplier for the position is determined. Each pool will have its own maximum boost, with a default cap of 200% (x3) and an absolute cap of 250% (x3.5). These parameters are applied within the Neutroswap ecosystem.