Narwhalswap Protocol — DeFi on Binance Smart Chain with Sustainability
These days, DeFi, AMM (e.g. Uniswap 🦄) and Yield Farming have increasingly become a broadly discussed topic among the crypto communities, especially with many new interesting projects emerging. The AMM+Yield Farming Model in particular, is one of the most popular genre of projects.
The common model of AMM is by depositing a token pair in a liquidity pool, the trader will receive a % fee from the transactions in the pool. Currently, the most popular model combines the AMM model with Yield Farming. This model sees the staking of a token pool’s Liquidity Pair token which in turn, earns even more rewards for the trader. This staking of LP tokens to earn rewards is also known as liquidity mining.
Many new projects in the BSC network provide the ability to stake popular token pairs such as BNB/BUSD. And the more popular a project becomes, it creates a high demand as traders scramble for the project’s unique LP tokens to farm rewards with high yields. This is the key reason that the BSC chain is plentiful with AMM projects at the current time.
However, there is one drawback of this popular AMM + Yield Farming model. Some of these projects follow a model which allows for unlimited minting of tokens. When demand becomes less than the supply, inflation occurs — which then makes their liquidity mining unsustainable in the long run.
👉 To solve this problem and move towards better sustainability, we at Narwhalswap have created a protocol to optimize the system.
In Narwhalswap, we provide liquidity mining that takes full staking opportunities of other BSC projects in the network and will continually invite more projects to join our efforts.
The Narwhalsap protocol will allow the staking of other project’s tokens, which will provide the trader with an NLP token (the representation of our Narwhalsap token). With this NLP token, you will be able to earn NAR tokens as well as the use of rNLP tokens for liquidity mining in other quality projects of the BSC network.
With this initiative, we will assist other projects to have the freedom to grow their own token without the burden of creating and sustaining their own swap on the BSC network.
As for the sustainability of the NAR token, we have assigned a total supply 21,000,000 NAR. We will also have an adjusted liquidity mining mechanic, which will be different from the popular model in the current market.
The popular formulas of current liquidity mining are as such:
Narwhalswap will adjust the algorithm from the user staked amount and convert to NARPOWER. This formula model is:
BUFF RATE depends on the staked days. It starts at 1 when staking and increases by 50% per day until the MAXIMUM BUFF RATE. And reset to 1 when harvesting NAR tokens or unstacking NLP tokens.
What is the MAXIMUM BUFF RATE?
For making sure that the whale 🐋 does not get a lot of pool share. Therefore, the MAXIMUM BUFF RATE must be set for each range. We divide users into three ranges.
- Tiny: user with the smallest staked amount
MAXIMUM BUFF RATE = 9 - Common: users with the intermediate staked amount
MAXIMUM BUFF RATE = 15 - Huge: users with the most staked amount
MAXIMUM BUFF RATE = 3
The numbers of three range are depended on the total users as below:
With Narwhalswap Protocol, we’re able to make a sustainable ecosystem and attraction more projects to settle down on BSC.
