Smart LP n-NFT — welcome the first yield-generating NFT of its kind!
So far, the NFT boom continues to resonate within the crypto industry. Art and collectibles, Metaverse, Gamification tweets, sports, GamiFi — it’s everywhere. But have you ever thought about what else could NFTs do?
Well, we’ve got an answer: welcome the first yield-generating NFT of its kind!
While the “usual” NFTs are mostly for collecting art and other assets, Nimbus n-NFT is for collecting yields. All you need to do is acquire the n-NFT and start receiving yields as you hold it.
… And yes, this is a new concept so we bet you’re wondering how this adds up? Find the answers below!
What’s so special about the Smart LP n-NFT — and how can you benefit from it?
Nimbus Smart LP n-NFT is based on a financial strategy that leverages Lending and Liquidity Providing. Why? Because these are the two most prominent functionality blocks in DeFi. They are also the most widely adopted ones. And that’s no surprise: they offer high APYs and are based on clear yield generation mechanisms. This makes them easy to rely on.
But it isn’t all that rosy…
In order to provide liquidity to a DEX and stake your LP tokens, you need to go through a number of webpages and confirmations — and pay many gas fees almost at each stage! Only then you can actually start receiving rewards. And when you want your assets back, it’s the same story.
But Smart LP n-NFT solves this issue:
- Users can receive rewards both from Lending, Liquidity Providing and LP Staking simultaneously — in one click. Plus you only pay a tiny gas fee once when you acquire it. All you need is at least 1 BNB and an internet connection to get started.
- Since Smart LP n-NFT provides access to several dApps at once, it also mitigates risks by diversifying your rewards and assets. So even if you’re not such a pro in Liquidity Providing, the Smart LP n-NFT has your back!
- Finally, unlike other NFTs, it brings you rewards in real-time — no need to sell or burn your n-NFT to cash out!
But why do we call it an NFT — and how exactly does it work?
From the technical perspective, Smart LP n-NFT is an ERC-721 standard NFT — just like many others. But due to some unique algorithms behind it, it transcends the horizon of what an NFT could achieve!
While the n-NFT does represent the assets that the user supplied when acquiring it, it’s much more than that. Since the n-NFT automatically puts those assets to work in a variety of dApps, what you receive is a personalized, tokenized portfolio that’s bringing you yields every second. It’s a personalized financial strategy that you can access with a click of a button. It’s a one-of-a-kind yield-generating NFT.
And by the way, Smart LP n-NFT is just the first solution of this kind. We will launch more n-NFTs which will represent different financial strategies based on a range of dApps. Just like the Smart LP n-NFT, they will enhance both your yields and your user experience like never before!
Here’s exactly how the Smart LP n-NFT works:
1) NFT issuance:
In order to initiate the issuance of an n-NFT, a user needs to supply the desired amount of BNB (the minimum threshold is 1BNB). The assets will get “attached” to this NFT. Meaning later, the holder will be able to withdraw the assets and rewards of this particular, unique n-NFT.
2) Receiving the yields in real-time:
Once the n-NFT is issued, the supplied assets get distributed between the Nimbus Lend dApp and the Nimbus LP functionality. Here’s exactly what happens:
- Nimbus Pool and LP Staking sections:
70% of the supplied assets get provided as liquidity to the Nimbus Swap: to BNB/NBU and BNB/GNBU pairs. Then, the received LP tokens — which represent your liquidity — get automatically staked in the LP Staking. As a result, the holder receives 2 types of rewards:
- a share of the 0,3% of all swaps taking place in these two pairs,
- 100% APY on the staked LP tokens.
The former accrues in BNB, NBU, and GNBU, while the latter — in NBU only. The both types of the rewards accrue in real-time. You will be able to withdraw swap fee rewards only once you burn your n-NFT, LP Staking rewards can be withdrawn any time.
P.S. Yes, it may sound complicated but all of this will happen automatically with zero effort for you — no need to worry! But if you’d like to get a deeper understanding of the Liquidity Providing process and be able to estimate your rewards, here is a tutorial.
- Nimbus Lend dApp:
The remaining 30% of the assets go to the Lend dApp. There, they are provided as overcollateralized loans — meaning your assets are safe. The n-NFT holder receives yields based on the APR rate, which as of today, equals 17%. That’s above market average! But it may change depending on the market conditions.
These rewards will accrue in BNB in real-time but you will be able to withdraw them only once you burn your n-NFT.
3) Burning or selling the n-NFT:
What if you’re tired of receiving rewards and want to redeem the assets backing this n-NFT? The easiest thing to do is burn your n-NFT in one click. Simply go to the same section where you acquired it and select the “burn” option. This way you redeem both the assets and the accumulated rewards (including those from lending).
If you’d like to have a bit more fun with it though, you can either sell it at the Nimbus Peer-to-Peer Exchange with no commissions or put it up for auction (this functionality is still underway). This way, you will receive the negotiated sum while the new holder will be entitled to receive the ongoing n-NFT rewards and redeem the assets at any time.
Summing up, what do you receive as a Smart LP n-NFT holder?
No manual work, no missed opportunity, no complex interaction — just pure, diversified, and efficient yields fitted specifically to your budget.