Lifinity Flares — A Merging of DeFi & NFTs

tl;dr

  • 10,000 animated NFTs
  • All NFT sale proceeds deposited into Lifinity’s liquidity pools
  • All revenue from trading fees & royalties → buyback & reinvest
  • If NFTs fall below 50% of mint price → buyback with pooled funds
  • 1% of the LFNTY token supply reserved for NFT holders

Overview

Lifinity Flares is a one-of-a-kind NFT project that directly combines NFTs with DeFi.

The purpose of Lifinity Flares is twofold:

  1. Raise capital to seed our pools with liquidity
  2. Perpetually create value for NFT holders

Lifinity Flares are animated NFTs with a distinctive aesthetic. Our in-house designer created a truly diverse set of traits to ensure that everyone’s Lifinity Flare is unique and differentiated.

A basic Lifinity Flare, 2/3 of actual size

There will be a total of 10,000 Lifinity Flares (30 will be kept for giveaways).

We will use Candy Machine for the mint.

Usage of Funds

All of the funds raised from the sale of Lifinity Flares will be deposited into Lifinity’s pool for SOL-USDC, which is the trading pair with the greatest volume on Solana.

The funds raised through this NFT sale will always remain in Lifinity’s pools. In the future, we may consider diversifying the funds into multiple pools if we believe this will generate more revenue for Lifinity Flares. However, it is important to note that none of the funds raised through this NFT sale will ever go to the team, artist, or anyone else. They will forever provide liquidity on Lifinity’s platform to generate revenue for our NFT holders.

Trading fees for the pools will be set to 0.15%. This is less than other protocols, but we expect Lifinity to be more profitable for both traders and liquidity providers (LPs) both because we enable greater capital efficiency for LPs through concentration and charge lower fees, leading to increased trading volume that more than makes up for the decrease in fees for LPs, not to mention our mechanism for significantly reducing (or even reversing!) impermanent loss. For more information on how Lifinity Protocol works, please read our introductory article and try our app at https://lifinity.io.

Buyback & Reinvest

Lifinity Flares will continually be bought back off of the open market, reducing the total circulating supply. Further, a portion of revenue will be reinvested in order to increase the rate at which we generate revenue for buybacks.

We will have two sources of revenue: royalty fees (5%) from secondary sales on NFT marketplaces and trading fees from our liquidity pools.

50% of revenue will be used to buy back Lifinity Flares off of the open market. The other 50% will be put back into the liquidity pools, enlarging the profit-generating engine. Since NFT holders will receive LFNTY, Lifinity’s governance token (see the LFNTY Token Airdrop section for details), the 50% of profits that are kept in the pool benefit NFT holders both by generating more future revenue for buybacks and by reducing the circulating supply of LFNTY through buybacks (see the Implementation Details section for details).

Finally, if the floor price ever falls below 50% of the mint price, we will buy back all Lifinity Flares below that price using funds in the pool (i.e. not just profits but funds from the sale). Since we will always have enough funds to make these purchases, this means the price of Lifinity Flares has a lower bound.

It is important to note that all buybacks will be done manually at the start. For this reason, do not expect buybacks to take place as soon as revenue is generated. Assuming enough revenue has been generated to perform a buyback, the team plans to execute buybacks approximately weekly. We will eventually make this fully automated.

LFNTY Token Airdrop

We have reserved 1% of the supply of LFNTY to be distributed to Lifinity Flare holders. Please note that this will not be our main form of initial token distribution; we plan to have an IDO later on (the details of our IDO have not yet been determined).

These tokens will be vested over 1 year with weekly distributions starting from the token generation event following our IDO. Each week, we will take a snapshot of wallets that hold Lifinity Flares at a random time and airdrop 1/52 of the 1% to these wallets. The amount you receive will be proportional to the number of Lifinity Flares you hold in your wallet (more Lifinity Flares = larger drop).

(Edit: We have since decided to switch from airdrops to a stake & claim model for distributing LFNTY to Flare holders. Further, we are providing Flare holders with the option of receiving their LFNTY upfront as 4-year locked veLFNTY. The Flare would be locked for 1 year. You would be able to use this option at any time throughout the 1 year distribution period. The amount of LFNTY that would be locked for veLFNTY would be 1/10,000 of the LFNTY left to be distributed (e.g. 6 months after distribution has begun you would receive 1/10,000 of 0.5%). In summary, users can choose to either stake or lock their Flare. Please join our Discord to keep up to date.)

A consequence of this distribution method is that a Lifinity Flare may receive more than 1/10000 of a week’s drop. For example, if the protocol has bought back 1000 and another 1000 are listed on NFT marketplaces, each Lifinity Flare will receive 1/8000 of that week’s drop. In other words, even if Lifinity Flares are being sold, that means more LFNTY for those who hold!

Not only will all revenue generated benefit NFT holders, but they will also become stakeholders in Lifinity. This is one way in which we’d like to express our gratitude to our early supporters and aim to have a wide token distribution.

Minting

We will create a whitelist that can be accessed through our Discord server, and those who sign up will have early access to purchase the NFTs.

Users will have a 48 hour period in which they can mint Lifinity Flares. After the 48 hours have passed, any unsold Lifinity Flares will be burnt. The amount of LFNTY to be distributed will be:

( (Total minted) / 10000 ) %

What this means is that minters will always have 1/10000 of the 1% of the token supply reserved for them, regardless of how many are minted in total.

We will announce the full details of the mint at a future date. Please join our Discord or follow us on Twitter to be the first to receive our announcements.

Finally, be on the lookout for non-visual traits in the metadata. 😉

Implementation Details

The NFTs that are bought back will be locked in Lifinity’s treasury. We want to make it absolutely clear that the team will not touch these NFTs. We have no plans to sell them on the market or use them in any way to profit at the expense of other NFT holders. Rather, we want the NFT holders themselves to be able to choose what will be done with the repurchased NFTs. Until we are able to fully transfer ownership of the NFTs to a functional DAO run by the NFT holders (do not expect this anytime soon), they will sit idly in the treasury.

Note that there will be a platform fee for all Lifinity pools that will go to the protocol’s treasury and eventually be used to buy back LFNTY. The fee will be 15% of the 0.15% trading fee and will be charged to LPs, just like with any other DEX.

Lastly, we will have to sell half of the SOL raised for USDC in order to be able to deposit it into our pool. This will be done gradually in order to minimize slippage. Therefore, we will gradually increase the amount of capital deployed to the SOL-USDC pool rather than depositing the funds all at once.

Disclaimer:
All content of this communication is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in this communication constitutes professional and/or financial advice. All persons are encouraged to seek their own financial advice prior to making any decisions.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Lifinity

Lifinity

The first proactive market maker on Solana designed to improve capital efficiency and reduce impermanent loss.