💫Non-Fungible-Magic
Overview
Last updated
Overview
Last updated
Functionality
Each Merlin LP has its own staking positions, or NFMs, which users can mint by sealing depositing tokens into via 'Trade>Liquidity'. Our native LP tokens are also known as M-LP, 'Merlin Liquidity Provider'.
When a position is created, the deposit is sent to a specific pool in exchange for a staking position NFT, which can be regarded as a deposit receipt.
These receipts are the only object that allows a user to withdraw the corresponding funds, regardless of who is using them; therefore, the owner of a NFM is also the actual owner of the corresponding LPs, even if he did not initially deposit them.
But staked positions are more than simple receipts: they replace the usual yield-generating farms found in the majority of DeFi protocols, and they also serve as an additional layer of functionality that offers limitless new opportunities and potential extensions.
The Benefits and Future Prospects
Advantages and extensions NFMs serve as an additional layer of capabilities that offer new opportunities and possible extensions:
Detail layer Staked positions: Serve as a "wrapping layer" for LP tokens, providing our locking mechanism for virtually any liquidity or singular asset without our intervention. This means that all protocols, regardless of whether they are listed on Merlin, can utilize this stack to add liquidity constraints and their own incentives layer, for instance by utilizing the Cauldron pools.
Adaptive Methodologies: Users can design sophisticated, individual strategies by utilizing an infinite number of staked positions for a single LP, each with its own unique combination of stake size, lock parameters, and boost mechanisms.
Efficiency: Liquidity providers earn more capital efficiency by keeping a physical receipt for their funds, liquidity suppliers increase the return on their investments. More generally, it was made in a manner that makes it easy to adapt for different purposes; one such application is as collateral.
The following is the bare bones of any secured position (NFM):
Designation that is one-of-a-kind
A down payment Fork token
A down payment Lock
APY
Preferences (length, when to begin/end), expressed as a percentage of the LP token's value.
Data on Multipliers
Operations
The proprietor of a staked position can do the following interactions:
Deposit, put more coins into the slot. If the location was locked, it will be unlocked.
Withdraw, take out a position from the holding. When the position is vacant, the NFM is burnt immediately. Inaccessible if the position is secured.
Collect, all outstanding compensation (stMAGE and MAGE). This is a one-time event that occurs only when the position's LP token receives yield rewards.
Lock, put a temporary lock on a position that was previously open.
Extend, renews or lengthens the lock period if the position is already filled.
Transfer, shift the position to a new location.
Split, divide the position in half and assign each half to a new position. If the previous position was secured, the new one will be too with the same parameters.
Merge, combine duties into a single role. The culmination of the merged positions will use the longest lock length and latest end lock time.
Locks
If the position's LP is incentivized, a lock will provide a yield boost based on this multiplier, and holding a lock may be necessary in order to stake on a Cauldron pool.
This bonus will be determined using a linear formula based on the total time spent locked and the highest lock multiplier.
In the future, we hope to give the LP's protocol direct authority over the lock and multiplier parameters.
However, the DAO's governance will control the procedure.
APY
Last but not least, each NFM that pays interest will have its own individual APY depending on:
The owners allotment to the packaged LP
The lock multiplier
Multiplier of Yield Booster
Although staked positions in the form of NFMs have a variety of applications, one of their primary initial uses will be to replace traditional yield farming mechanisms in exchange for Merlin incentives.
Dividend-paying NFTs
From the perspective of the user, the mechanics are very similar to those of DeFi's conventional farms.
However, the Merlin's Master contract distributes incentives to all staking positions of team-defined selected wrapped LPs, as opposed to those ordinary farms.
In other words, a user's ownership of a staking position does not guarantee that he will receive Merlin's yield incentives; this will only be the case for certain assets.
Once a staked position's LP belongs to the specified pairs, the NFM's begin producing yield with rewards from the Master, just as if its owners were actually staking into a traditional farm.
Rewards
Merlin's incentives take the form of dual-rewards: eligible bundled Merlin LPs will receive both MAGE and stMAGE for their staked positions.
The proportion of both rewards in the total varies depending on the asset, with 80% stMAGE and 20% MAGE being the default.
Yield multipliers
There are two methods to increase yields from staked positions that generate yields: locks and the Yield Booster plugin. Both values will range from 0% to 150% (x1 to x2.5) depending on the staked asset, but will typically be set to 100%. (x2).
These two multipliers are added together to determine the total multiplier for the position. Each pool will have its own maximal boost, with a default maximum of 200% (x3) and an absolute maximum of 250%. (x3.5).
