Narwhalswap Liquidity Mining Explained

Decentralized Finance (DeFi), Automated Market Maker (AMM) and Yield Farming have seen a tremendous growth and usage across the Crypto ecosystem, becoming the most discussed subjects among the crypto enthusiasts, as many new DeFi projects emerged. AMM+Yield Farming is the focus of interest for developers and investors as this forms the core operation of these projects.

The common model of a typical AMM is this; a user is required to deposit a token pair in a liquidity pool and subsequently receives a percentage reward from the transactions in the pool. However, many projects currently use a combined model, that is, AMM with Yield Farming. This model allows a user to stake a token pool’s Liquidity Pair token in return for more rewards. Therefore, a user earns from the liquidity pool and also from staking liquidity pool tokens. This model is excellent, right? Yes, but it is unsustainable on the long run. There is a major drawback with this popular model which is, it allows for unlimited minting of tokens. Projects that follows this model tend toward unlimited token supply, less demand of their token, and inflation, making this liquidity mining model unsustainable.

Introducing Narwhalswap Protocol

Narwhalswap is an AMM protocol based on Binance Smart Chain (BSC). The aim is to expand DeFi ecosystem on BSC network, and likewise address the common problem of network congestion, slow transaction speed and high fees associated with the native chain of DeFi, Ethereum. Other focus of interest of Narwhalswap is to attract as many crypto investors and developers to participate on BSC network through Narwhalswap custom AMM and Liquidity Mining model.

Addressing the major drawback of the common liquidity mining model

Narwhalswap has designed and created a better model which is well optimized for a sustainable ecosystem, both in short and long term. The liquidity mining model deployed by Narwhalswap takes full staking opportunities of other projects on the BSC network as against the popular model which mines only the native token. Narwhalswap as stated above will allow tokens of other projects to be staked on its protocol which provides the user with an NLP (Narwhalswap LP token). The user will be able to earn NAR tokens with the NLP token, and by using the rNLP, the user also get to participate in liquidity mining of other quality projects of the BSC network. See the image below for more:

Benefits of Narwhalswap Liquidity Mining Model

• This model is sustainable as the total supply is pegged at 21,000,000 NAR with an adjusted liquidity mining mechanism. There is no chance for unlimited supply.
• Users can earn more from their staked tokens — first, from the liquidity pool and second, from liquidity mining of other projects’ tokens.
• Staking token is not restricted only to Narwhalswap token. Other quality projects on BSC can be used to stake on NAR protocol.
• This model also facilitates the growth and exposure of other projects within the BSC network. As long as these tokens can be mined on NAR protocol, they get introduced to potential investors, community of holders and more collaboration with other innovate projects.

While rounding up this article, it is important to note that Narwhalswap has implemented other mechanism to actualize the sustainability of its protocol. An adjusted liquidity mining mechanism will be deployed on the platform. This will give every miner same platform to earn and will eradicate the predatory power of any whale. See below for models formula:

Popular liquidity mining formula

Narwhalswap liquidity mining formula

where BUFF RATE depends on the staked days

CONCLUSION

Narwhalswap is a DeFi protocol built for sustainability. The vision is beyond the immediate stake and earn but rather, for the future of finance. Being on Binance Smart Chain is an added advantage, for speedy transactions, lower fees and fast network flow.

Useful Links:
Official Website: https://narwhalswap.org
Twitter: https://twitter.com/narwhalswap
Telegram: https://t.me/narwhalswap
Discord: https://discord.com/invite/svKCf67
Github: https://github.com/narwhalswap
Document: https://docs.narwhalswap.org

BTT Username: Akoldi_ibk

Proof of Authentication Post: https://bitcointalk.org/index.php?topic=5279517.msg55367552#msg55367552