MetalSwap Release: UniV3 NFT Staking

MetalSwap Improvement Process [BLOG](8)

After a fruitful testing phase in which significant improvements were made to the feature, the team is proud to announce the official release of the NFT staking feature on the Optimism blockchain. 

This is a fundamental step towards improving liquidity and trading volumes around the XMT token, which will bring benefits to the entire dApp.

Brand New NFT Staking Feature

As detailed in the testnet announcement article, the NFT staking feature allows users who provide liquidity for XMT/USDC pair within Uniswap V3 on Optimism to stake their NFTs within the dApp and accumulate extra rewards in form of OP and XMT tokens.

This new feature aims to increase the liquidity of the XMT/USDC Uniswap V3 trading pair within the Optimism blockchain, i.e., the chain that over the last months has gathered the largest number of hedging positions for the dApp.

This feature is open to everyone and will be heavily incentivized by the foundation, especially in the first few weeks, so it is important to seize this opportunity before the rewards decrease.

Liquidity and lock incentives

As mentioned before, the NFT staking feature will reward the users with extra rewards, and these extra incentives will be in the form of OP and XMT tokens!

The minimum liquidity for participating in the NFT staking feature is set at 100 USDC or 5000 XMT, and the rewards will be distributed every 7 days.

As the rewards will be variable depending on the liquidity that is staked and the range within which the liquidity will be distributed, it’s impossible to predict what the APY of the NFT staking will be, but it will surely be very juicy!

At the beginning, 500 OP and 5000 XMT will be allocated to the NFT staking feature and 10% of them will be distributed each week. For this reason, before the NFT is staked, more rewards will be gained, as the tokens in the distribution contracts will decrease week by week.

NFT staking tutorial

Let’s now see how to actively participate in this new feature.

The first prerequisite is, of course, to possess the minimum number of required tokens, which is 100 USDC or 5000 XMT on the Optimism blockchain, plus a small amount of ETH to cover the very low network fees of Optimism.

The second step is to go to the dedicated page of the NFT staking feature directly from the MetalSwap dApp, always ensuring you are on the Optimism blockchain.

Once you reach the dedicated page, you will need to click on the “CREATE NEW NFT” button

Now a dedicated window will open where you can actually create the liquidity NFT to be staked within the dApp.

Since this feature is based on Uniswap V3, liquidity can be concentrated within a price range that is fully customizable by the user.

The narrower the range, the higher the concentration and rewards earned, but the greater the risk that the price of XMT falls outside the range, rendering the liquidity inactive.

The wider the range, the lower the rewards earned, but the lower the risk that the price of XMT falls outside the range, thus requiring less active management by the user.

In the upcoming blog articles, strategies regarding the range to use will be shared, both for more aggressive users who want to earn the maximum rewards available and for less active users who are willing to earn less in exchange for a more passive management approach.

The Inspect button shows the NFT countervalue, how many XMT and USDC.e represents and if it is in range or not.

The Modify button gives the chance to change the liquidity involved and manage it overtime.

Unstake and conclusion

If a user decides to Unstake his NFT, this action can be done after one week from the Staking moment, which is made to protect the system from different types of attacks.
By clicking on Inspect, you'll see the "Unstake Cooldown" section at the bottom of the NFT card

As said before, in the coming days, different articles will be released about some farming strategies with the new NFT staking feature so stay tuned for the coming news and be sure to follow our Telegram group where all the announcements are communicated.

-The DeFi Foundation


✎ What is MetalSwap?

MetalSwap is a decentralized platform that brings Hedging Contracts on financial markets with the aim of providing coverage to those who work with digital asset and an investment opportunity for those who contribute to increase the shared liquidity of the project. Allowing the protection for an increasing number of operators.

With MetalSwap we enable Hedging Contracts on the DeFi field, AMM style.