While staked positions under the form of spNFTs has a wide range of use, one of their main initial purposes will be to replace classic yield farming mechanisms by receiving Camelot 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 Camelot's Master contract distributes incentives to all the staking positions of team-defined selected wrapped LPs.
Once a staked position's LP belongs to those listed pairs, the spNFT starts generating yield with rewards from the Master, as if its owners were actually staking into a regular farm.
The share of both rewards in the total varies depending on the asset, with a default set to 80% xGRAIL / 20% GRAIL.
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).