Thanks to DeFi protocols, access to finance has been democratized, allowing anyone with an Internet connection to access opportunities and services. However, they only gained popularity after the “DeFi summer of 2020” and the yield farming craze that followed.
The concept of yield farming has changed the way people think about saving by becoming the standard way to generate passive income in the cryptosphere. Therefore, many DeFi protocols have developed their architecture and functionality around yield farming. However, yield farming has remained virtually unchanged over the years despite its value.
Presentation of the animal farm
farm animal is a DeFi protocol inspired by the novel of the same name by George Orwell which criticizes centralized power. Unlike its competitors, it is the first and only decentralized property lending and yield aggregation protocol in the DeFi industry.
The platform uses two native tokens, DOGS ($AFD) *live October 18*, the reward asset, and PIGS ($AFP), the governance token, which represents the platform’s stake.
Unlike other DeFi platforms, Animal Farm uses a dynamic supply control algorithm. By employing this innovative algorithm, providing the DOGS ($AFD) token, which will be released on October 18and the PIGS token, is determined in a decentralized and trustless manner.
Due to the supply control algorithm and tokenomics of DOGS ($AFD) and PIGS ($AFP), supply is designed to remain stable and even become deflationary in times of low demand, thus allowing for optimal price performance in all market conditions.
$AFP Contest – Join the animal farm craze
The farm animal will hold a giveaway contest to celebrate the full launch of the protocol on October 18. After completing a series of tasks, a user will receive exactly $5,000 in BUSD. In order to avoid increasing the supply of circulating tokens, Animal Farm does not pay for promotion or marketing with native tokens. Therefore, the reward will be in BUSD.
Animal Farm Tokenomics and Reward Model
Launching October 18, DOGS ($AFD) has a unique acquisition model that does not lock user tokens. Using a variable tax model instead, he created an incentive structure that rewards those who make profits in the form of BUSD and BNB dividends by staking DOGS ($AFD) instead of selling it on the market.
Participants in Animal Farm’s “DogPound” see the tax associated with the transaction of their DOGS ($AFD) reduced to a rate of 1% per day. This model perfectly aligns incentives for optimal performance. It rewards users for removing AFD tokens from circulation while allowing them to earn like the rich do by accumulating assets; this allows them to receive a dividend paid in BNB.
70% of taxes placed on DOGS token transactions ($AFD) are exchanged for BNB and paid into the ‘DogPound’ loyalty contract, allowing DOGS ($AFD) stakers to reduce their DOGS ($AFD) transaction tax while earning a high return BNB dividend.
30% tax on traded DOGS ($AFD) tokens is exchanged for BUSD and paid to the “PigPen” as a high-yield BUSD dividend. The owners of the platform receive 75% of the fees generated by deposits and withdrawals in BUSD, which is then distributed as a high-yielding dividend to the $AFP punters of the PigPen. 25% of fees generated on the platform from deposits and withdrawal fees are used to buy DOGS ($AFD) and add AFD/BUSD liquidity, generating a steady stream of DOGS ($AFD) buying pressure and decentralized locked-in liquidity.
Each time $AFP or $AFD tokens are sold, 3% of the transaction is burned, removing them permanently from circulation, making them deflationary.
Higher return through loans
Decentralized loans are obtained by lending collateralized TVL (Total Value Locked) to Pancakeswap, the largest decentralized exchange on Binance Smart Chain (BSC). Thus, Animal Farm offers compounded low-risk return aggregation on top of the return natively generated by the protocol. The return generated from the loans to Pancakeswap is converted into BUSD and paid out to “PigPen” punters. Users get all the benefits of earning yield on Pancakeswap while earning extra cash flow on Animal Farm with enhanced incentive structures.
Not only do $AFP token holders collect fees and taxes on the platform as owners of the platform, but they also have a vote on future roadmap proposals.
Durability and performance
With all the mechanisms detailed above, rewarding users for removing the $AFP and $AFD tokens from circulation and paying a dividend for doing so in the non-native token (BUSD and BNB), and dynamic supply control based on underlying demand, farm animal and its native tokens are designed to be the most successful yield-generating assets ever created.
Animal Farm is poised to become one of the leaders in the DeFi world. There is an extensive roadmap, which includes already developed products, generous incentives, an attractive referral program, an elegant user interface, a distinctive architecture and an innovative yield-generating system that works at all levels of the market.
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