Blockchain innovations: Netbox.DeFi release and NBXB Farming
DeFi or “decentralized finance” is a technical concept that leverages the potential of decentralized networks to transform old financial products into trustworthy and transparent protocols that run without requiring intermediaries.
One of the most exciting aspects of DeFi is the way in which anyone with a cryptocurrency wallet can become an integral part of an exchange, lending platform or any other financial service by providing them with liquidity. When users add their assets NBXB + WBNB (BNB) to a BSC-based liquidity pool, they receive BEP-20 Liquidity Provider (LP) tokens in that pool proportional to their contribution. LP tokens earn them a right to receive fees paid by liquidity seekers (0.17% on all trades of this pair), and they can be redeemed for their share in underlying assets of the pool.
These LP tokens can then be staked in special pools to farm NBXB tokens — and that is referred to as “Yield Farming”!
With our native NBXB token available for trading on Pancakeswap, it’s now time to introduce our Yield Farming program!
Yield Farming Details
This program will run in cooperation with TosDis.Finance and will continue for three months and 10 days (starting on August 15, 2021), with a total reward pool of 1,000,000 NBXB tokens, distributed as follows:
- Month 1: 300,000 NBXB
- Month 2: 300,000 NBXB
- Month 3: 300,000 NBXB
- Last 10 days: 100,000 NBXB
Yield Farming Requirements
- A BEP-20 compatible wallet like Metamask, TrustWallet etc.;
- Some NBXB tokens;
- Some WBNB or BNB (BEP-20) tokens.
To begin, you will have to provide some liquidity on PancakeSwap. You can do this by connecting your BSC wallet and following these steps:
- For adding liquidity to the NBXB/WBNB(BNB) pool, please visit here:
2. Enter how many of each token you want to provide for liquidity. Note: NBXB (in USD) must equal BNB (in USD)
3. Approve the pool if you have not already, and then click “Supply”.
4. Wait for the transaction to be approved, and you will receive an amount of NBXB/BNB liquidity tokens (called CAKE-LP) equal to your share of liquidity.
Now that you have your CAKE-LP tokens, you can go to https://app.tosdis.finance/farming. Make sure you have connected your wallet and select the Binance Smart Chain.
Go to Public Pools and look for NBXB Pool or follow the direct link:
Then follow these steps:
- Click “Approve” button and confirm the transaction with your BSC wallet (Ensure that you have enough BNB to pay the transaction fee = ~0.0003 BNB).
2. Click on the “Stake” button.
3. Click “MAX” and then “Stake” button again.
4. Confirm the transaction with your BSC wallet (Ensure that you have enough funds to pay the transaction fee).
5. That’s it, you’re done! You will now earn free NBXB tokens!
This month’s pool has “insane” APY! (Note: APY is adjusted according to the size of the liquidity pool).
Warnings regarding Liquidity Providing
- In order to provide liquidity you always need to provide the same value of both tokens. For example, if you want to put a liquidity worth of 100 NBXB tokens, and which is worth 50$ at that time, you also need to provide 50$ worth of BNB tokens.
- While providing liquidity you have to understand the phenomenon of impermanent loss. Impermanent loss happens when the price of your tokens changes compared to when you deposited them in the pool. The larger the change is, the bigger the loss.
So why do liquidity providers still provide liquidity if they’re exposed to potential losses? Well, impermanent loss can still be counteracted by trading fees. In fact, even pools that are quite exposed to impermanent loss can be profitable thanks to the trading fees.
- While we have a large amount of NBXB tokens reserved for the liquidity mining program, these rewards will be distributed among all liquidity providers, so the APY and rewards will change accordingly.
- Final Note: The larger the liquidity, the healthier the market. This means less volatility on each trade, with the risk of impermanent loss decreasing drastically.
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