CSWAP Allies™
Seamlessly blending traditional DeFi with cutting-edge NFT technology
Last updated
Seamlessly blending traditional DeFi with cutting-edge NFT technology
Last updated
The Allies™ NFTs are a revolutionary blend of art and DeFi utility. By forging strong partnerships with various projects within the crypto space, we aim to imbue our NFTs with intrinsic value and practical benefits. Through these collaborations, NFT owners are not just purchasing a digital asset; they are acquiring a stake in a larger ecosystem.
Unbothered Wolves
Ape Nation
Keyboard Warriors Internet Cafe
Ancient Dragon Alliance
Inmates
Just as with our CSWAP Origins™ collection, there are 4 rarity tiers:
Bronze (65% rarity) - 60 ADA worth of LP
Silver (20% rarity) - 105 ADA worth of LP
Gold (10% rarity) - 200 ADA worth of LP
Platinum (5% rarity) - 400 ADA worth of LP
The Allies™ NFTs are the first NFTs on any chain to embed DEX LP tokens. In fact, they actually embed multiple forms of LP.
60% of the embedded value of each NFT is CSWAP/ADA LP
40% of the embedded value of each NFT is partner token/ADA LP Shortly after CSWAP's fungible DEX launch (target: Q1 2024), you will have the ability to burn these NFTs to extract the embedded LP tokens. Note that in scenario, you should consider that you would be giving up the extrinsic value of the NFTs (art, collectability value, etc.), and would also be increasing the scarcity and potentially the value of the remaining NFTs.
We have built a calculator that allows you to see the current intrinsic value of the embedded LP tokens for the Allies NFTs: https://app.cswap.fi/allies-value
One problem that many NFT collections suffer from is that in a rising market, the price of NFTs will often drop when the value of the layer 1 token goes up. This is not the case with the Allies NFTs, because they have embedded LP tokens. Due to the embedded ADA/CSWAP and partner/ADA LP, as long as those underlying tokens have value, the NFTs will always have some intrinsic value. This offers downside protection to the holders.
Also, because of the upside potential of both ADA and the partner tokens, these NFTs also possess upside potential as well.
Once community liquidity is live (target release date: Q1 2024), Allies™ NFTs will offer liquidity providers on CSWAP's NFTfi DEX the ability to earn additional rewards by providing NFT/ADA liquidity to the platform.
When a user creates a NFT/ADA liquidity pool, in order to take advantage of the boost, the user will have the ability to lock up to 5 NFTs to receive LP Boost on $CSWAP rewards for that pool.
Note that if you hold > 1 of a given tier, there is a stacking penalty, this is an anti-whale measure to incentivize broader distribution of the NFTs.
Holding 1 of each tier can be a cost-efficient way to achieve a higher boost without incurring stacking penalties. Any 5th NFT you add will take a stacking penalty. This not a special bonus, just a desirable combination.
Full Metal Combo : 93% Boost
Within a specific rarity tier, if you hold one of each design, you will receive a significant boost.
Allied Boost — This boost requires that the design of your NFT matches the collection for which you are providing LP, so it will only apply to the partner project NFTs. For example, if you are using 1 or more KWIC Allies NFTs to boost your $CSWAP rewards on the KWIC/ADA NFT pool , you will receive the following boosts:
— If you hold 1 of each rarity tier with the same design that matches the collection you’re providing NFT/ADA LP for, then you will earn a max allied boost for that collection.
Max Allied Boost: 112.50%
For example, if you are supplying NFT/ADA LP for Inmates, and you supply Inmates Allies NFT + each rarity tier, plus an additional bronze NFT, you would earn 112.5% + 6.75% = 119.25% extra CSWAP as an LP on that pool.
As you can see, the higher tier NFTs are more powerful but there are anti-whale mechanisms built into this, and the various boost options still make the lower tiers very useful.
For more information on the Allies™ collection, refer to the following Medium articles:
https://medium.com/@cswapdex/cswap-allies-season-1-collection-f2b3398e2127 https://medium.com/@cswapdex/nftfi-marketplace-community-liquidity-program-update-427157b0df36
