Gm, Anon.
Welcome to Mithical.io, an NFT project utilizing Defi ponzinomics, to offer free NFTs through a lossless mint process to its community. This article will explore the underlying mekanics that help us achieve this.
INTRODUCTION
1] Collection Overview
2] Lossless Mint Ponzinomics
3] Conclusion & Key Headlines
1] COLLECTION OVERVIEW
Across cultures, myths describe magical kingdoms & beings that fascinate the human mind. As a community-driven NFT project, we will resurrect these worlds on the Ethereum blockchain. Our project will build on existing myths by molding authentic characters & narratives.
Here is a quick summary of what you can expect in the future:
a) Total Number of Collections: 05
b) Total Number of NFTs (per collection): 1000
c) Future NFT productivity & interactivity
d) Exploration of the Mithical universe & more
2] FREE MINT PONZINOMICS
The underlying ponzomics that help us achieve the “Free mint” is detailed in this section. We list the steps involved & discuss them briefly.
Step 01: Users deposit $ETH or DPX/WETH LP on into the mint pool.*
Step 02: Deposited $ETH is zapped into $DPX/WETH LP tokens.**
Step 03: Once the pool closes the NFT price is determined.***
Step 04: Depositors can claim their NFTs, shortly after the pool closes.
Step 05: All LP tokens are used for farming for 14 days.
Step 06: After 14 days, users withdraw their deposits (in LP Tokens).
Notes:
- Mithical will retain only staking rewards for project funding.
- Users who do not receive an NFT will receive their share of the rewards.
*Deposits take place on Arbitrum, in the Mithical app.
**The max price for 01 NFT is capped at 2.5 LP.
***Deposits close after 48 Hours or sooner, if max cap for deposits is reached.
Now, let us explore some key concepts:
LP staking and minting
Mithical is unique because its NFTs are FREE, thanks to an LP staking process that depicts the intersection between DeFi and NFTs.
Once the mint goes live, Steps 01 through 06 (listed previously) are carried out. Let us explore 02 scenarios:
Scenario A: You have deposited ETH or DPX/WETH LP > NFT price.
Outcome 01: You receive one or more NFTs & your LP Tokens.
Outcome 02: Price for NFT = 0$
Scenario B: You have deposited ETH or DPX/WETH < NFT Price.
Outcome 01: You receive your LP Tokens.
Outcome 02: You receive your share of the LP staking rewards.
In both scenarios, the outcome is a “win-win”.
Simple, innit?
3] CONCLUSION & KEY HEADLINES
By listening to our community, we gathered a few questions relevant to this discussion. We sum up responses to these queries in a Q&A format.
How much will the NFT cost?
The price will depend on total amount of ETH deposited into the mint pool.
How much ETH should I deposit?
You can deposit any amount of ETH, you consider reasonable. A higher amount of ETH, helps achieve more floor liquidity and/or higher price.
What if >1000 users participate in the staking & I don’t get my NFT?
In such a scenario, all your LP tokens will be returned, with the farming rewards accrued based on your share of the initial deposit. Win-Win.
What about NFTs that don’t get sold, during the mint?
Mithical will use remainder NFTs for the purpose of providing floor liquidity. You can read more about the floor token here.
But ser, if fundsu are returned with ze NFT, what is Mithical’s incentive?
Mithical will retain only the farming yield from the staked LPs (to be precise, only the portion of LPs that ended up minting an NFT). That’s the end game.
A FREE MINT! Sounds too good to be true. What is the risk? rugged?
The underlying risks are those associated with the use of any liquidity pool. (a) contract issues & (b) impermanent loss.
Impermanent Loss? What is that?
In simple terms, if the price of either token (DPX or WETH) pumps or dumps too hard, the DPX/WETH LP will have a significantly different value (higher or lower) than the initially deposited value.
Stay connected
We know there are still a lot of questions left unanswered. Unfortunately, you will have to wait for our next article. In the meantime, you can follow us on Tweetor & join our discord to catch impromptu alpha leaks.
Wen next article? Zooooon!
WGMI Anon.
