NFY — A Better Way To DeFi
Non-Fungible Yearn is a DeFi platform which will allow users to stake their various cryptocurrency holdings in multiple different pools to earn NFY, the governance token of the platform.
While it may just seem like another staking platform, there are some major differences.
While traditional DeFi staking platforms earn yield based on the amount staked in a user’s account. The NFY platform creates an ecosystem where instead of an account being connected to a certain stake, a NFT (Non-Fungible Token) represents the rights to a stake.
Maybe you are not familiar with NFTs, but you should be! You may remember in early 2018 the CryptoKitties craze where people were spending $1,000s of dollars worth of Ethereum to buy a digital cat! These collectibles were created using the ERC-721 standard. A revolution was started! Each ERC-721 token is unique and they are identified by a token id. This allows data to be specific to a certain id. No two tokens are exactly alike!
Crypto Kitties contract: https://etherscan.io/address/0x06012c8cf97bead5deae237070f9587f8e7a266d
While collectibles alone are a great use case for the standard, I thought to myself that there must be a way utilize ERC-721 tokens in the DeFi sector. That is when it hit me!
Non-Fungible Tokens and Yield Farming
Staking
The process will be the same as any other staking platform. The key difference is that when a user stakes their crypto currency, a NFT will be minted and inside that NFT the details of the stake will be stored.
Now you may be wondering to yourself “Who cares?” and to that I say, you should! Not only you, but everyone who uses the Ethereum ecosystem!
With NFY there is no more need to unstake your tokens if you want to stop staking, just simply delegate some of the stake from the NFT to the trading platform and place a sell order! NFY creates a secondary market for the already staked tokens, a user can just sell their stake directly rather than unstaking and going to sell.
Unstaking
Instead of unstaking their tokens, when a user is done with the protocol or just simply wants to get rid of their tokens they are staking, they can just go to the market and sell their NFT. Since all of the details will be stored in the specific token, they will be able to sell their NFT at the market value. All interest accrued will be redeemable by the user that was holding the NFT. No expensive transaction on the user to unstake and no extra congestion in the network!
If a user wants to they can always unstake, again this process will be the same as they are used to. In this unstaking process though the desired NFT is burned and staked funds plus unredeemed rewards will be transferred to the user. A fee roughly 5% will be taken out of the initial deposit to redistribute to the protocol to create a self-sustaining system and to encourage trading of the NFT. Easy and clean!
Do not think this is the only way the NFY platform will be used. There are more incredible use cases in the pipe-line that are being worked on and will be relayed in another article soon!
Thank You
Twitter: https://Twitter.com/NFYFinance
Discord: http://discord.gg/wKgUcYr
Telegram: https://t.me/NFYOfficial
GitHub: https://github.com/NFYFinance
