Yield Bearing
Last updated
Last updated
While staked positions under the form of kpNFTs has a wide range of use, one of their main initial purposes will be to replace classic yield farming mechanisms by receiving KIM incentives.
From a user standpoint, the mechanics have a lot of similarities with DeFi regular farms.
However, instead of allocating rewards to those regular farms, the KIM's Master contract distributes incentives to all the staking positions of team-defined selected wrapped LPs.
In other words, it's not because a user owns a staking position that she'll necessary receive KIM yield incentives: it will only be the case for those selected assets.
Once a staked position's LP belongs to those listed pairs, the kpNFT starts generating yield with rewards from the Master, as if its owners were actually staking into a regular farm.
KIM incentives are under the form of dual-rewards: the eligible wrapped KIM LPs will have their matching staked positions receive both KIM and xKIM.
The share of both rewards in the total varies depending on the asset, with a default set to 80% xKIM / 20% KIM.
There are two ways to boost returns from yield-generating staked positions: through locks, or through the .
Both values will vary depending on the staked asset, from 0% to 150% (x1 to x2.5), but will usually be set to their default 100% (x2).
The sum of those two multipliers is used to determine the total multiplier of the position. Every pool will have its own maximum boost, with a 200% (x3) default cap and an absolute cap of 250% (x3.5).