Announcing the Staking and Rewards System on DeFi City
DeFi City is a gamified metaverse powered by NFTs (non-fungible tokens) that brings you the best of DeFi on a platter. As we already shared, it is a reward-generating ecosystem where you can own a virtual city in the metaverse and reap the rewards as you add your own DeFi elements to it. Now, the virtual city is actually an NFT, and therefore every single city has unique properties that yield different rewards for staking. Our main aim with DeFi City is to make existing DeFi features like yield farming and staking fun, straightforward, and accessible to everyone.
In this article, we delve into the two types of staking we have on DeFi City and their rewards mechanism. So, let’s dive in.
Our staking and rewards mechanism is transparent, with most of the rewards depending on the properties of your virtual city. There are two types of staking in the DeFi City ecosystem, namely NFT Staking and the Genesis Pool.
DFC staking is the process where users stake DFC tokens to earn rewards in the form of DFC itself. Now, the APY (annual percentage yield) on this process is quite dynamic and determined by the properties of the virtual city NFT.
Each virtual city or each NFT in the ecosystem has four unique properties — grid, townhouse, resources, and environment. These properties range from common to extremely rare, and the staking rewards you earn will ultimately depend on the rarity of your city’s properties. The rarer your property, the higher will be your staking reward.
For instance, each city in the metaverse comes with 256 tiles that can be used to harvest DeFi elements. Separating these tiles are grids. There are three types of grids called No Neon, Neon Purple, and Neon Blue. The rarest of these is Neon Purple, with a winning chance of only 0.01%. Though this grid is rare, on the off chance that you win the Neon Purple grid, your DFC staking rewards will increase by 10%.
The same goes with townhouses. There are various tiers from garage to supertower, with the latter being the rarest and most valuable one. Winning the supertower will make you eligible for an additional APY of 9%. In the same way, the rarest resource is a diamond, and the rarest environment is the galaxy, both leading to higher APY on staking tokens.
The final APY that a staker receives is a combination of APYs on all these properties and the base APY. Having one or more rare properties will lead to a higher total APY than having no rare elements at all. But, along with this, there is a base APY applicable to all users, irrespective of their NFT properties. In the first month of launch, the base APY for users is 50%. The base APY will be reduced by 10% every month (40% in the second month, 30% in the third month, and so on). Fifth month onward, a fixed base APY of 10% will be offered to everyone.
So, the final APY received by the users of the platform is Base APY + NFT APY. This ensures that everyone gets a fixed profit off of the ecosystem.
DeFi city uses Chainlink VRF randomness generator to ensure that all the properties assigned to users are 100% random. So, there can’t be any complaints about the platform being biased.
To understand what total reward percentage your city NFT can reap through DFC staking, you can read our detailed guide to the reward bonus received for each type of property within your city.
Genesis pool is the second staking mechanism in DeFi City. This staking mechanism will be around only for the first three months after launch. The pool has a cap of 1M DFC where each user is limited to 5000 DFC max. Once the cap is reached, the pool is full. The Genesis pool can yield APYs up to 400%.
Staking is undoubtedly one of the most popular ways of earning rewards with crypto assets. Now, DeFi City takes it to a whole new level by gamifying the process and making it not just rewarding but also fun for users of the platform. With two types of highly beneficial staking and rewarding mechanics in play, you are bound to have fun growing your portfolio.
You can get a detailed table of NFT properties and staking rewards in our previous article.
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