The Piggy Bank — 3% daily returns
If you’ve been keeping up with the Animal Farm and related ecosystem, then you’ll be super excited to hear about the Piggy Bank. If you’re newer to the ecosystem, lets take a stroll around and see how this all fits together.
The Farm
A few of my earlier articles detail what the farm is and how it works, so they’re a good read, but in essence the farm is similar to a regular Yield Farm in the DeFi space, except that it also introduces the concept of ownership, where owning the PIG token gives you a share of the revenue produced by the farm and similar to a DAO, also gives you a say in the future direction through voting rights.
The Piggies that needed a J.O.B
Up until the Piggy Bank, the PIG token was the only part of the platform that carried little utility, aside from its key role of sitting in the PigPen and earning your cut of the BUSD fees of the platform. That made them a little lazy and subject to price swings as there was little need in providing liquidity for them. Some utility was needed to make the Pigs earn their rightful place in the ecosystem.
Enter the Piggy Bank
The Piggy Bank is the first non-inflationary variable time staking Annunity. Think of it is a supercharged version of the DRIP Garden where you deposit your Pigs/BUSD LP tokens to earn up to 3% daily ROI. Let’s break down the key features.
The Piggy Bank goes live on 3rd March 2022
You can create the required LP tokens directly on the Animal Farm site by clicking the menu option Liquidity -> Add PIGS LP. You’ll need both PIGS and BUSD to create the LP tokens.
Up to 3% daily return
As per the mechanics of the DRIP Garden, you can earn up to 3% a day based on your own and the collective health of the contract. Positive actions, such as compounding and deposits are rewarded and negative actions such as claim only leeching, will allow others to outpace you in building an maintaining your share.
Time Locks and multiple stakes.
One of the significant differentiators of the Piggy Bank, and a key reward generating mechanic here, compared to other similar projects in this space (and even the DRIP Garden), is the ability to time lock your stake to receive exponential rewards. You can lock in weekly multiples, from 1 week all the way to 156 (3 years). You are able to compound during the locked period, but not withdraw. The rewards are also paid out over an exponential curve, with the majority (70%) paid in the last quarter of the locked period.
The exact locking reward multipliers have not been shared yet, but these are expected to be significant enough to overtake the depreciation mechanics as well as regular manual compounding of unlocked stakes.
The other key aspect is the ability to have multiple concurrent stakes across different time locking periods, which gives you the flexibility to choose the strategy that suits your needs.
Referrals
It wouldn’t be a Forex project without the community reward aspect, and we are not disappointed here. Similar to the mechanics in DRIP, a secondary token must be held to unlock the ability to receive rewards. In this case the DOGS token is required, but rather than holding in your wallet, you need to deposit your DOGS in the Animal Farm Single Staking DOGS Pool
The number of DOGS held drive the commission percentage you can receive, differently to the DRIP hierarchical approach to rewards.
You can also gift (airdrop) timelocked LP tokens. These can be used for example to reward your referrees, which will be listed on the page. I’ll be looking to do this, but amounts will depend on the exact strategy I undertake once the time-locked rewards become clear.
If you’ve found this article helpful and are looking to invest, I’d appreciate if you’d use my link below as a referral.
https://defi.animalfarm.app/piggy-bank/0x3Fc8423087042ff562d08a5257A5eCd40b92fa35
Of Piglets and Truffles
What about these two elements? Piglets and Truffles are analogous to the Plants and Seeds in the DRIP Garden. Piglets represent your share of the pool and drop in value over time, incentivising new capital to invest, while also encouraging compounding to continue to grow your share. Truffles are the equivalent of Seeds and reflect the value you are creating, fed back at 3%/day. This can either be compounded to create more Piglets or claimed to reward you with Pigs/BUSD LP tokens.
Daily Lottery
Another cool upcoming feature is the ability to enter a Lottery. This is not fully documented yet, so subject to change, but the mechanics shared so far will be as follows
- You can use both DRIP and DOGS to enter the lottery.
- The lottery will run daily and (depending on contract balance), pay out approx $20k in PIGS.
- The lottery will be funded by deposit and withdrawal taxes on the Piggy Bank. Additionally the entry DOGS will be burned and the entry DRIP will be sent to the DRIP Tax Vault.
What does this all mean?
All of these innovations are incredibly bullish and positive for the entire Farm and DRIP ecosystem. The mechanics here should do many positive things across the board
- Add BUSD Liquidity for PIGS, supporting the market and helping to appreciate the price.
- Adding further utility for DOGS and DRIP, helping to appreciate the price.
- Create another mechanism for earning PIGS — which could then be staked into the PigPen to earn perpetual passive income.
I’ll pen some thoughts on strategy in a future article, but I initially intend to get in with at least one unlocked stake and one short time-locked stake to experiment with the reward mechanism, before I commit to a plan for any long-term staking.
DRIP — the root of all Animal success
I can’t mentioned all of the above without putting in a word on DRIP.
The entire Animal Farm has taken on a huge life of its own now and is an independent powerhouse, but was originally borne out of the need to create a sustainable ecosystem around DRIP and the amazing income generating opportunity presented by the Faucet.
Have a read below to learn more about DRIP and how to take advantage of that amazing opportunity! If anything I’d say put something in the Faucet first to start your compounding journey ASAP, before extending into the Farm!
If you have questions or would like to learn more, you can reach out to me on telegram below.
Nothing in this article is intended to constitute investment advice. Neither the author nor the publication takes any responsibility or liability for any investments, profits or losses you may incur as a result of this information. Readers are encouraged to perform their own due diligence and research, or consult a licensed financial advisor or broker before making any and all investment decisions. This content is intended for general informational and educational purposes only. Though the author strives for accuracy, the data contained within the article cannot be relied upon. The author may own cryptocurrencies and tokens discussed in the article. The article may contain affiliate links.
