⚙️slCHIMP: Lock, Burn & Merge
Let’s explore the innovative features of slCHIMP, how it compares to traditional veNFTs, and the benefits it offers to users within the CHIMP ecosystem.
What is slCHIMP?
slCHIMP is a novel concept where users lock up their CHIMP/USDC LP tokens to mint slCHIMP NFTs. These NFTs represent ownership of a portion of the liquidity pool, offering various functionalities and incentives.
Features of slCHIMP NFTs:
Flexibility: Users can burn their slCHIMP NFTs anytime to retrieve the underlying CHIMP tokens.
NFT Operations: Users can create new slCHIMP NFTs, split existing ones, or even merge multiple slCHIMP NFTs.
Time-Based Yield Farming: The longer you stake your CHIMP LP tokens, the more rewards you earn.
veNFTs vs slNFTs
slCHIMP introduces a new paradigm in NFTs, offering significant improvements over traditional veNFTs like ve(3,3). While ve(3,3) imposes a forced lock-up period of up to 4 years, which can be unappealing to users, slCHIMP eliminates this constraint, making it more attractive and accessible.
Benefits of slCHIMP over veNFTs:
Time and Yield: Your slCHIMP accrues value over time and with the amount of CHIMP LP tokens staked, providing a more dynamic and rewarding experience.
Partial Withdrawals: Removing some CHIMP LP tokens from the NFT does not reset the staking timer, ensuring continuous rewards.
Increased Participation: By removing barriers to entry, slCHIMP encourages more users to participate in yield farming activities.
slCHIMP Staking Mechanics
The staking mechanism of slCHIMP is based on two primary factors: Power and the number of days staked. Here “Power” stands for the multiplier you receive for the amount you staked and is dependant on how long you stake your tokens.
Users can contribute their LP tokens to obtain slCHIMP. For instance, if you deposit 1 LP token, your voting power will be calculated based on the following table. Initially, you will receive 100 slCHIMP, which will increase to 140 slCHIMP on the seventh day and 350 slCHIMP after one year. Th table below outlines the subsequent levels and the duration required to accumulate additional slCHIMP power, thereby encouraging users to stake for longer periods.
Anti-Mercenary Liquidity
The Anti-Mercenary Liquidity feature is a time-based farming system that can be applied to yield farms for various pairs, aiming to minimize mercenary liquidity, where users stake, earn, and subsequently sell their assets. This new approach aims to foster a more sustainable and stable environment for yield farming, encouraging long-term investment strategies over short-term profit-seeking behaviors.
In addition to addressing mercenary liquidity, Chimp Exchange has introduced an exclusive utility that provides users with allocations in their launchpad and the tokens launched through it. This feature not only incentivizes users to participate in the platform's ecosystem but also creates a value-added benefit for those who are committed to supporting the growth and development of the platform.
Yield Generation:
Let's understand the yield generation through an example. Consider Alice and Andrew's staking activities.
→ Alice stakes 1 LP for 14 days, while Andrew stakes 1 LP for 0 days. According to the table, Alice's stake carries a Power of 150, whereas Andrew's stands at 100.
→ To calculate their final yield, we first determine the weight of their stakes using the formula (Power x LP added). For Alice, it's (150 x 1) = 150, and for Andrew, it's (100 x 1) = 100.
→ Thus, the total weight becomes (100 + 150) = 250.
→ To ascertain the yield each can generate, we uses the formula: Yield = Total rewards x (Your weight / Total weight).
→ Therefore, for Alice, the yield is calculated as 100 x (150 / 250) = 60%, and for Andrew, it's 100 x (100 / 250) = 40%.
As illustrated in the graph below, the key takeaway here is: the longer you stake, the more rewards you earn.
Benefits of slCHIMP
The slCHIMP feature unlock a range of benefits within the CHIMP ecosystem:
Governance: Gain voting rights and actively shape the future of CHIMP governance decisions.
Bribes for Other LPs: Access exclusive incentives and rewards for providing liquidity across various CHIMP trading pairs.
Launchpad Access: Get early access to new project launches and exclusive investment opportunities.
Trading Rewards: Enjoy additional rewards and incentives for actively participating in CHIMP trading activities.
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