How Can You Make Your NFTs Earn Yield?
A new JPEG Farm for all those PFPs you’re hodling!
As overall NFT value continues to dilute, market intrigue in new collectible opportunities has also lost much of the wind in its sails. With the market succumbing to unfavorable conditions, how should collectible communities proceed?
With NFT asset holders, rightfully, demanding added value beyond the excitement of speculation, NFT projects were lacking the incentives matching the industry’s maturity level.
In this community, the project that is near and dear to our DAO’s heart is the PFP collective, Sharkpunks. Originally, the Sharkpunks’ value-add was meant to be derived from token utility across its native Metaverse, Sharkcity, which would use level-up, battle and land ownership gamification features. However, to say this avenue is a bit of a red ocean, is an understatement and our sharks need to roam in new waters with more opportunity.
With ve tokenomics recently taking the DeFi world by storm, we saw a unique opportunity. Therefore, we are happy to introduce our ve tokenomic-based NFT platform, levx.io, which will utilize the Sharkpunks PFP collection as its genesis value-generating project. This platform suggests that integrating DeFi principles to new and existing NFT assets not only bolsters their individual worth, but ignites the market as a whole by introducing a new use case to a plethora of idle assets.
How It Will Work
On this platform, assets from participating projects can create a yield farm linked to their NFT. This means that being the owner of a farmed NFT, or its admirer, can earn you true, viable yield. As we continue, a point to note is that an NFT farm is created around a single NFT, not around an NFT project. However, the more assets from a project that create a farm on levx.io, the more APY allocated to that group of collectibles.
This innovative technology means that NFT owners, such as Sharkpunks owners, who participate in NFT yield farming will then realize asset value made up of:
PFP rarity + the expected value generated from future emissions (farmed yield) for the shark (You may also include future sales revenue, speculatively, in this figure)
Your NFT’s yield is determined by three factors: That project’s overall participation boost, your NFT’s staking boost, and additional boost from non-owners. We’ll cover these in detail later.
Future emissions, or harvestable yields, will be rewarded in the form of the platform’s native token, $LEVX, which supports ecosystem sustainability.
How to Make A Farm for Your (Sharkpunks) NFT
Step 1: You must own an NFT
Step 2: Buy LEVX tokens (Any amount will do, even <1)
Step 3: Stake your NFT on the platform along with any amount of LEVX to create the farm
**Remember, more staked LEVX for your farm results in higher rewards!
Step 4: Determine your lockup period (This will dictate the amount of veLEVX you receive)
Step 5: Start earning yield! ($LEVX is the reward token)
Buying LEVX to stake, only to receive more LEVX sound confusing? To better explain, when you buy then stake LEVX, you receive a staking “receipt” via veLEVX tokens. When creating a farm from these veLEVX tokens you received, you are essentially removing some LEVX from circulation which prevents inflation to drive sustainable yield.
As an owner, you have the option of revenue sharing with farm participants upon the event of selling your asset, which may increase the attractiveness to potential farm boosters. Although you need to split the rewards with other farm boosters, you will want more people to increase the amount of farm participants, because more rewards will then be allocated to your NFT through their staked tokens.
How to Earn From An NFT Farm as a Non-Owner
Step 1: Buy LEVX tokens (Any amount will do, even <1)
Step 2: Stake your LEVX tokens and determine your lockup period (This will dictate the amount of veLEVX you receive)
Step 3: Select the NFT farm you’d like to participate in and boost the farm via veSPX
Step 4: Start earning yield! (LEVX is the reward token)
Why would you participate as a non-owner? NFT farm participants are eligible to share in the revenue of the future sales of the asset. If the NFT’s rarity is high, this could be opportune to benefit from the sale of an extremely valuable NFT without buying it outright. More generally speaking, the more staked LEVX tokens in a farm, the more emissions, so, latching on to a farm with high emissions is beneficial for non-owners as they partake in the rewards.
At a time when NFT value is at the peak of scrutiny, we thought of no better way to re-engage the community than with the introduction of this value-add mechanism. Let us know which other NFT projects you’d like to see join in this exciting, value-generating platform!
Launch Event
To kick things off, we are celebrating the launch of this engaging new NFT venture with an announcement that coincides with Sharkpunks S.O.S. (Significant Offering of Sharks) drop. Owners of the new collection will be among the first NFT collectors to earn NFT yields on levx.io, and to thank the LevX DAO community, there is a special yield trait on the S.O.S. Sharkpunks!
All 5,817 Sharkpunks NFTs will receive a 10x APY boost for their farms!
+All 333 Retro Sharkpunks NFTs will receive a 15x APY boost for their farms!
You can join the Sharkpunks S.O.S. drop from May 20th 1400 UTC in the official website: https://www.sharkpunks.org/
