Introducing Steroids, the pNetwork yield farming programme
We’re fast approaching the launch of the pNetwork DAO. To help onboard new users, increase liquidity and boost adoption of the entire pNetwork ecosystem, we’ll also be kicking off our very own yield farming programme, Steroids.
This programme will go live later this month and coincide with the launch of the DAO.
The Steroids programme will run for a period of one month and will award users who provide liquidity to the PNT/USDT Uniswap V2 liquidity pool. Those who stake in the pool will be rewarded with up to 10% monthly rewards, distributed in pNetwork Token (PNT).
The more liquidity users provide, and the longer it is staked for, the higher the reward is.
The pNetwork DAO already rewards PNT holders with 42% APR for those who actively stake and vote. This new yield farming program will unlock even more rewards for PNT holders, who want to both provide PNT liquidity to Uniswap and stake them within the pNetwork DAO.
Yield farming on Steroids
Yield farming could be defined as any kind of effort which puts crypto assets to work to generate returns on those assets. This strategy has worked well for DeFi projects, and has resulted in Ampleforth’s Geyser achieving the biggest pool on Uniswap (ETH<>AMPL), which today holds more than $25 million in liquidity.
Similarly, the Steroids programme will incentivise holders to add liquidity to Uniswap’s PNT pool, the first token to go on Steroids. In future initiatives, we will include other pTokenised assets into the Steroids programme. Up to 200,000 PNT tokens are dedicated to such rewards.
All PNT token holders can receive rewards by adding liquidity to the Uniswap V2 PNT/USDT liquidity pool. By providing this liquidity, token holders will receive “UniV2” pool tokens in return, which act as a receipt for their contribution and represents a share within the Uniswap liquidity pool.
Holders moving their “UniV2” tokens into Steroids will receive up to 10% monthly interest as a reward. Liquidity providers can increase their earning potential based on how much, and for how long they supply liquidity for. The more contributed, the greater the share of the PNT pool received.
Steroids and the pNetwork DAO
The Steroids smart contract is designed to leverage one of DeFi’s key features, composability — something we’re working hard to make industry standard.
In fact, the Steroids smart contract is an Aragon app within the pNetwork DAO and is a great example of composability since this is the very feature making the interaction between Steroids, other apps within the DAO and the Uniswap liquidity pool possible.
Other than growing rewards for liquidity providers in the PNT/USDT Uniswap pool, this app enables the UniV2 PNT/USDT pool tokens to be staked directly within the DAO. When users choose to stake their UniV2 tokens in the DAO, holders will receive daoPNT tokens, which represents one’s share within the DAO. Holding daoPNT grants voting rights. By actively participating and voting in the DAO, users then qualify for the interest rewards.
This means, thanks to Steroids, PNT holders can combine both liquidity mining rewards from the Uniswap PNT/USDT pool (10% monthly) with pNetwork DAO voting rewards (42% APR).
On the one hand, Steroids is a great example of the high level of composability achieved by the DeFi sector. On the other, it showcases the inherent flexibility of the daoPNT tokens’ structure.
Such a yield farming mechanism is made possible because the Uniswap PNT/USDT liquidity pool effectively holds PNT tokens as its underlying asset. At the same time, tokenising a user’s DAO stake (daoPNT) abstracts out the complexity and is enabled to leverage the full potential of Money Legos. A result of this is that the quantity of daoPNT tokens correlating to your UniV2 PNT/USDT pool tokens will dynamically shift over time, as it’s dependent on the actual quantity of PNT tokens held by the Uniswap liquidity pool, which can fluctuate.
The Steroids programme provides scalable infrastructure for managing a variety of yield farming initiatives hosted within the pNetwork ecosystem.
PNT on Steroids is the first attempt to boost adoption and encourage healthy growth for the project, an experiment that will form the basis for a range of other well-balanced initiatives in the future.
Our project is familiar with these approaches, having launched limited, one-off staking programmes in the past. Thanks to the insights we gained from these initiatives, we were able to design an effective staking programme for the pNetwork DAO, which is far larger in scope.
The DAO will kick off next week with 29 Million PNT tokens already at stake within the system, accounting for approximately 50% of the total supply.
Stay tuned for more upcoming details on how and where you can stake your PNT in the Uniswap pool.
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