Peaking Ducks Wrapping
Last updated
Last updated
As a proof-of-concept for our NFT Wrapping ecosystem, we have taken the Peaking Duck NFTs, the native NFTs for Peak Finance, as the first series of NFTs to have collateral locked.
Please refer to the Peak Finance and Prometheus Whitepaper V1 for more information on the Peak Finance Dapp.
The first iteration of wrapping is focused on securing collateral and rewarding users that take a long-term stake in the protocol.
By presenting users with collateral tiers and time-lock thresholds, they apply multiplier traits to the wrapped NFT that will play a role in Summit Staking (covered in the next section).
Peaking Ducks have two additional layers of incentives that reward holders.
The first layer is that 90% of the initial funds raised from the Peaking Ducks mint will be actively traded to pursue opportunities in the market. Through the Peaking Duck treasury trading strategy that relies on $BTC as a leading indicator, profits realized over time will buy back the $PEAK token to drive the peg up. The taxation schedule currently active on $PEAK ensures that those who wish to realize those profits in another denomination will pay an exit tax that subsequently raises the price floor for the $PEAK token.
The second layer comes from secondary market royalties applied to the Peaking Ducks NFT. When sold on the secondary market, the royalties are as follows:
4% buyback $USDC to grow treasury.
2% buyback $PEAK.
2% buyback $METIS.
2% treasury management fee.
$PEAK and $METIS buybacks through royalties will be reserved for liquidity purposes to expand the availability of the $PEAK token.
When wrapping Peaking Ducks, there are no upfront fees. But to ensure the longevity of liquidity and reward those that maintain the collateral state of their wNFT, a 5% unwrap fee will be applied. With sufficient secondary market activity and prior unwrap fees applied, there is a likelihood (not a guarantee) that the user will redeem more tokens pro-rata even after fees are applied.
The unwrap fees and secondary market royalty allocations are as follows:
Wrapped NFT Secondary Market Royalties
10% Royalties from marketplace currency is used to buy back $PEAK and $METIS to supply liquidity
2.5% to Peak DAO Treasury
7.5% to Wrapping Contract
User unwraps NFT
The user cannot unwrap NFT until the time lock has expired. 5% tax on LP tokens when the user Unwraps NFT:
2.5% to Peak DAO Treasury
2.5% to Wrapping Contract
Peak DAO Treasury’s accumulation of Peak and Pro LP tokens is to expand sources of available liquidity to other DEXs in the Andromeda ecosystem and beyond.
Ultimately, Wrapped Peaking Ducks are multi-dimensional in the pursuit of intuitive opportunities to reward holders and compound with user’s investment, trading, and unwrapping activities. With a limit of 5000 NFTs, they will become increasingly valuable as the Andromeda network continues to grow into the future.
