PolkaInsure launches the next phase in our roadmap: Deflationary Farming.
What is Deflationary Farming?
In simple terms, Deflationary Farming is Farming PIS to earn PIS even without minting any new PIS token.
In longer terms, Farming is a way of attracting liquidity addition from users. If you look at most of farming projects in the last few months (yeah lots of xxxSwap forks of sushiSwap), those farming projects usually provide high APY by providing high inflation in their token. High APY sounds attractive for farmers. That’s why those farming projects attract lots of liquidity put in the farms.
However, due to the high inflation of the tokens in those farms, those tokens quickly become pump and dump tokens, which are not good for DeFi if we want to get into mainstream and create real value from those farming projects.
Deflationary Farming basically does not mint/generate any new token, thus zero inflation.
Some will ask: where does rewards come from? there are mainly two sources:
- From transaction fees when users send/receive/trade tokens on DEXes such as Uniswap. Basically every transaction has 2% transaction fees. The fees are collected and distributed proportionally to all users who farm in the deflationary farming. NERDz achieves 1300% APY at peak without minting any new token.
- From decentralized finance products including: PolkaInsure protocol when it becomes live. Deflationary Farming does not mint any new token, but trying to provide high APY through different sources (both internally and externally).
What’s launched in the current Deflationary Farming of PolkaInsure:
- Every transaction has 2% transaction fees. The fees are collected and distributed proportionally to all users who farm in the deflationary farming. The more trading volume on Uniswap, the more rewards farmers can receive.
When rewards from PolkaInsure protocol?
- As in our roadmap, PolkaInsure and Deflationary Farming will be expected to migrate to Polkadot. Along with Shield mining, Deflationary Farming will still earn rewards for farmers through the PolkaInsure protocol.
Is liquidity locked?
Liquidity token when farming will be locked for 2 weeks, then released gradually over the next four weeks. This locked period is shorter than in NERDz for more flexibility to users and for migration from Ethereum to Polkadot Ecosystem.
40% of Rewards from Deflationary Farming will be released immediately when users harvest or deposit into the farms. The remaining 60% will be locked for 14 days. Again, this locked period is shorter than in NERDz.
What are available Farms at Launch:
What is expected APY?
- The expected total APY from all farms is 800–1500 %
- The APY also highly depends on the farmed liquidity and the value of PIS token.
When can you withdraw PIS rewards from the farms:
- Whenever there is a transfer transaction
- Whenever there is a trade on uniswap
- Whenever there is any PIS compaign.
- Whenever there is any activity with the PIS token.
PIS is designed to be self-sustainable and attracts investors from the being built insurance protocol.
Deflationary Farming: PolkaInsure Farming
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