(NCDT) Liquidity Staking

Learn more about NCDT Liquidity Staking!

On Sunday (21th March 2021), we will release Liquidity Staking in partnership with Ferrum Network. But before we do, we wanted to provide critical information on the structure, rewards, and requirements of Liquidity Staking. Enjoy!

General Overview

When Uniswap liquidity providers deposit liquidity (ETH + NCDT) into the Uniswap Liquidity Pool, a special type of token, known as liquidity tokens (Uni-V2), are minted to the contributor’s address. When traders finalize their trade on the Uniswap exchange, a 0.3% fee is distributed pro-rata to all liquidity providers (LPs) at the moment of the trade.

For an LP provider, you are now double incentivized to maintain your LP position. Not only are you earning fees on each trade made on Uniswap, you are also earning additional NCDT rewards!

Staking Structure

First, it is pool based; it is a group activity with multiple contributors for each staking contract.

Second, it is flexible; you have the option to withdraw early, stake until full maturity, or withdraw somewhere in between. However: leaving early comes at a cost.

Thirdly, it offers double rewards, not only are you earning fees on each trade made on Uniswap, but you are also earning additional NCDT rewards!

Finally, it is strategic; if you stake until full maturity, and others in your pool withdraw early, you will receive a portion of their rewards that are unclaimed.

We will publish a full “how-to stake” guide next week, but overall it is quite straightforward. First, you add liquidity (NCDT + ETH) at Uniswap for the NCDT/ETH trading pair. Then you connect your ERC-20 wallet to the staking contract. Then you deposit your tokens into the pool. Afterward, you can stake until you wish to withdraw. When you choose to withdraw, your principal and rewards will be distributed back to your wallet. Easy peasy!

The Liquidity Staking Pool

The terms of the Liquidity Staking pool (rewards, lengths, minimum contribution, etc.) are detailed below:

  • Rewards: Uniswap Trading Fees (in Uni-V2 Token) + 105 % APY (in NCDT)
  • Full maturity: 90 days
  • Early withdrawal starts: 4th May 2021
  • Early withdrawal ends: 3rd July 2021
  • Early withdrawal rewards start at 5% APY + Trading Fees
  • The time period to contribute: 14 days (the pool will be closed after that so you have to be fast to join)

Requirements for Staking

Metamask: NCDT Liquidity Staking requires the ERC-20 wallet extension Metamask, which will automatically link to our staking contracts. This wallet will be used to contribute your token to the liquidity pool. It will also be used to distribute staking rewards upon withdrawal.

Keywords and Unique Features

Double Rewards

Limited Time to Contribute

Full Maturity

Early Withdrawal

Although rewards are lower for early withdrawal, they increase linearly every day — up until full maturity. In other words, if you withdraw after the early withdrawal date and closer to full maturity, rewards will be higher, but still less than full maturity.

Forfeited and Redistributed Rewards

In this sense, Staking offers an element of strategy, suspense, and gamification.

What’s Next

Then we will open up the Liquidity Staking pool!

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