NFT Liquidity Farming

Every liquidity provider on Evira will get a unique NFT that records the information of their liquidity position, including the liquidity amount, price range, etc. We innovatively designed an additional layer of incentives to CLMM(Concentrated Liquidity Market Maker) liquidity providers, allowing them to stake their Genesis NFT into our farming pools to get extra rewards. Rewards will be distributed in the form of Evora’s official token EVO or in tokens sponsored by other project teams.

Since liquidity providers can set their liquidity price ranges to totally different segments, we cannot use the common mechanism to determine our reward distribution solely relying on the user’s liquidity amount. We proposed the concept of “eLP-Value”, which represents the effective liquidity value of every Genesis NFT. For different types of projects, we designed different incentive strategy algorithms to evaluate the eLP-Value of their Genesis NFT. In the end, under Evora’s NFT liquidity farming, every NFT that users have staked will be transformed into corresponding fungible tokens by the specific incentive strategy algorithm according to their eLP-Value. The rewards will be distributed proportionally to the corresponding fungible token amount of every user. In this process, the transformation between users’ Genesis NFT and fungible tokens are seamless to users, so the interaction for users is still in a simplified manner.