DeFi yield farming of real-world intangible assets — everything you need to know
What is yield farming?
This is an automatic practice of lending cryptocurrencies or staking them to generate more cryptocurrencies. Yield farming in DeFi is now an established way for crypto tokens to have value.
DeFi yield farming’s simple yet intelligent actions of autonomous borrowing and lending have been creating breakthroughs in finance. It allows anyone to get access to traditional investment schemes but with better rates and upgraded features.
Yield farming’s success has shown its usefulness within finance, and now it’s expanding into the intangible assets arena through the DEIP network.
Intangible assets are essential to governing and propelling our economic world. An immutable ledger like the blockchain makes the most sense to host intangible assets, but up until DEIP, there hasn’t been a blockchain created to holistically manage intangible assets.
The DEIP network takes into consideration how intangible assets are uploaded and how users can access them. But what’s most important is the innovative F-NFT structure for intangible assets on the DEIP network.
F-NFTs (fractionalized NFTs) are essentially non-fungible tokens that can have multiple people owning a fraction of them. F-NFTs expand the possibilities and use cases of NFTs, and that makes them eligible to be the digital model for intangible assets.
For example, F-NFTs allow users to sell a fraction of ownership which could be useful for receiving funding. F-NFTs can also be used to share revenue across stakeholders or creators of a project.
F-NFT intangible assets generate revenue for crypto farmers
This first starts with the DEIP network allowing users to create DAOs (decentralized autonomous organizations). DAOs are organizations that use code to govern themselves to achieve full transparency and democracy. Therefore, voting is an essential practice for decision-making. In the DEIP network, users can use DAOs to co-own or co-manage F-NFTs.
Yield farming is a unique type of DAO that incentivizes network governance on the DEIP network. Users can stake DEIP and earn more by providing liquidity to an F-NFT segment which is a pool of F-NFTs identified by something in.
F-NFTs can be categorized due to their token structure. F-NFTs contain metadata, and within it is a “category/segment” attribute. This allows F-NFTs to have a category like “health”, “education”, or “tech”, and then have a segment like “bio-health” to act as a subcategory.
The DEIP network has an ecosystem fund that facilitates the reward yield farmers receive. Whenever users stake, the funds will be invested in special issuance platforms. 5% of the profits received from the ecosystem fund’s investments are distributed among those who staked in the F-NFT segment that generated the profits.
At launch, the DEIP network will convert staked DEIP tokens in a segment into a segment liquidity pool (SLP). Then AMMs (automated market makers) like decentralized exchanges will be used to provide extra liquidity for SLPs.
Benefits of DeFi Yield Farming F-NFT Segments
Yield farming F-NFT segments will provide a new profitable way to earn on the blockchain. For every F-NFT and NFT transaction within a segment, there will be fees associated with them, and yield farmers will be getting a cut.
For example, let’s say there is a “gaming” segment. A blockchain metaverse game on the DEIP network decides to use F-NFTs for in-game assets such as a special character. Players who complete a particular mission are awarded the special character by becoming a fractional owner of its F-NFT.
The players who have ownership over the F-NFT special character can sell their ownership to another player or exchange it for ownership of another F-NFT asset. Whenever these transactions are taking place, yield farmers in the gaming segment will be receiving a portion of the fees.
The more transactions within a segment, the more rewards generated for that segment. So stakers are incentivized to farm cryptocurrency for popular or growing segments. Also, profits from a segment are distributed according to the amount invested. Stakers that lock in more DEIP tokens will be receiving a larger reward than those who put in much less.
This also means stakers will have to look for segments that aren’t populated with too many big stakers. Yield farmers will benefit the most from positioning themselves in undiscovered segments that have the potential to generate mass amounts of volume.
Crypto farming F-NFT segments is a crypto passive income stream that allows anyone to dictate their potential earnings by getting into lucrative segments.
F-NFT Segments are Crypto Farming’s Next Evolutionary Phase
The DEIP network is creating the foundation for intangible assets on the blockchain and Web3 infrastructure. DeFi Yield farming real-world assets will not only create opportunities for millions to earn, but it will also help creators gain liquidity fast for their newly launched projects in a popular segment or a highly liquid segment. This could help accelerate mass adoption and the materialization of a global Web3 ecosystem.
