Yield farming

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.

Yield-bearing NFTs

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.

In other words, it's not because a user owns a staking position that he'll necessary receive Camelot yield incentives: it will only be the case for those selected assets.

Anyone can find the list of incentivized positions on this page.

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.

Rewards

Camelot incentives are under the form of dual-rewards: the eligible wrapped Camelot LPs will have their matching staked positions receive both GRAIL and xGRAIL.

The share of both rewards in the total varies depending on the asset, with a default set to 80% xGRAIL / 20% GRAIL.

Yield multipliers

There are two ways to boost returns from yield-generating staked positions: through locks, or through the YieldBooster plugin.

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).