Yield Farming

Staking Protocol

While staked positions in the form of spNFTs offer a multitude of potential applications, their primary initial role will involve substituting traditional yield farming approaches by receiving incentives from FLASHPAD.

Yield-Farming NFTs

From a user's perspective, the mechanics exhibit several similarities to conventional DeFi farming systems. However, rather than allocating rewards to these conventional farms, FLASHPAD's Master contract disperses incentives to the staking positions of specifically designated wrapped LPs, as determined by the team.

In simpler terms, merely owning a staking position does not automatically entitle a user to receive FLASHPAD's yield incentives. This privilege is reserved for the selected assets. The list of incentivized positions can be accessed on this page. Once a staked position's LP is associated with the pairs listed, the spNFT commences generating yield, akin to users staking in a standard farm setting.

Rewards

FLASHPAD incentives manifest in the form of dual rewards, encompassing both $FLASH and $xFLASH. Wrapped FLASHPAD LPs deemed eligible will have their corresponding staked positions benefit from this dual-reward structure.

The distribution ratio of these rewards within the overall package fluctuates based on the asset involved, defaulting to an allocation of 80% xFLASH and 20% FLASH.

Yield multipliers

Enhancing returns from yield-generating staked positions can be achieved through lock mechanisms. These values exhibit a range of variability dependent on the specific staked asset, spanning from 0% to 150% (equivalent to a multiplier of x1 to x2.5). The typical setting will often align with the default of 100% (x2).

The cumulative effect of these two multipliers amalgamates to formulate the overall multiplier for the given position. Each pool will be characterized by its distinct upper limit for boosting, with the standard cap resting at 200% (x3) and an absolute ceiling established at 250% (x3.5).