Multi-Reward Summit

While the benefits to the Peak Community are abundantly clear for a multi-reward liquidity mine to emit tokens even when the Peak protocol is below peg, this section focuses largely on the benefits to the Andromeda community at large.

First and foremost, the life of the first iteration of the Multi-Reward Summit is 3 years.

As Andromeda tokens enter the liquidity mining contract, they will be linearly emitted from when the contract receives them. This leads to the retention of Andromeda project tokens.

Example: Let’s say that 1095 $NETT tokens enter the liquidity mining contract on the first day. This means that 1 $NETT token will be distributed and shared with Peaking Duck NFT and $PRO stakers for the contract's life. If 365 days elapse with only 730 days remaining in the liquidity mine, another 73,000 $NETT tokens enter the liquidity mining contract in a day. An additional 100 $NETT tokens will be shared among stakers daily for the life of the liquidity mine.

The benefit for Andromeda projects participating in Peak Andromeda Wrapping is guaranteed longer-term retention of their native token.

Fees apply to secondary market activities, and the team or the DAO does not realise unwrapping. It is retained for the contract, ensuring that no undue sell pressure is applied to their assets and compound rewards wNFT holders the longer they withhold from unwrapping.

To incentivize wNFT procurement, Andromeda projects may wish to deposit their native token into their wNFT collateral contract to encourage retention of their token and a range of sustainable behaviours with their wNFTs.

Anyone can deposit up to 25 different ERC-20, ERC-721, and ERC-1155 assets as collateral into NFTs. Each collateral asset shares a treasury contract. This is an important function, as regardless of the intended use case for wrapping collateral in an NFT, the wNFT will gain exposure to secondary market royalties and unwrapping fee compounding. However, only Andromeda projects can nominate the NFTs they wish to have staked to boost their own liquidity mining incentives. To add an additional layer of incentives, NFT wrappers may choose to fractionalize their NFTs to encourage the micro-trading of their wNFTs.

Secondly, Andromeda projects can reward users for supplying liquidity on a longer-term basis while issuing their native tokens through liquidity mining incentives. It is often the case that NFT staking that boosts yields doesn’t negate the effects of token inflation on the asset price. Using wNFTs increases the liquidity pool depth of the underlying tokens.

Third, wNFTs offer a new way for projects to easily onboard new investors. New investors seeking to bypass the complexities of a CEX may instead create a wallet and then purchase a wNFT containing the project’s tokens. This pain point is not exclusive to the Andromeda mainnet. It is often difficult for new users to opt-in to an alternative network without the experience of configuring a wallet to a suitable network and then bridging those tokens across.

For intermediate users with bridging experience, wNFTs enable these NFTs to cross-chain. At the same time, the underlying collateral is safely stored and can only be redeemed from the host network.

As per the 0.5% allocation to Peak Finance DAO collected from unwrapping fees, we will be committed to a time-locked wNFT to participate in partner projects DeFi projects to strengthen the position of the Peak DAO in the long-term while supporting our partner projects' liquidity. Partner arrangements in the use of collateral collected from fees will be published ahead of time so that Peak and participating Andromeda projects can have peace of mind.