Amplifying Rewards
Yield Amplification with Booster NFT
When you mirror ETH and USDC on L1, and these balances are mirrored onto L2, you can apply a Booster NFT to enhance the yield received during the mirroring period.
At the end of the mirroring period, you can withdraw your assets along with all accumulated $CFN rewards.
Minting NFTs
The minting price for a Booster NFT stands at 0.01 ETH, with no restrictions on which accounts can initiate the process. Each Booster NFT encompasses three distinct attributes:
Multiplier: This attribute spans from 101% to 200%, offering varied degrees of enhancement.
Duration: Specifies the minimum staking period necessary to unlock the full multiplier potential.
Durability: Denotes the number of times the NFT can be utilized for boosting purposes. Once the durability counter depletes to zero, the NFT loses its boosting capabilities.
For ensuring fairness and decentralization in random number generation during the minting process, Counterfactual Network leverages Randomizer.ai.
During minting, an attribute coefficient is applied to each attribute value. While the default coefficient is 1 for most cases, unique tokenIds offer enhanced terms, even if the associated random number isn't exceptionally high.
| Token ID | Coefficient |
|---|---|
0 to 999 | 3x |
Multiple of 1000 | 1x Added |
Multiple of 10000 | 2x Added |
Multiple of 100000 | 3x Added |
Multiple of 1000000 | 4x Added |
Multiple of 10000000 | 5x Added |
For instance, any Token IDs below 1000 will benefit from a 3x coefficient. This implies that even if the initial random number assigns a multiplier of, say, 15%, it will get (1+3) = 4x to reach the value of 45%.
Now, for Token Id 11000, given its divisibility by both 1000 and 10000, a coefficient of (1+1+2) = 4x applies. Similarly, if the Token ID is 1001000, as it's divisible by both 1000 and 10000, the coefficient will be (1+4+1) = 6x. This coefficient enhancement boosts the terms associated with the Booster NFT, providing users with better terms than what their original random number allocation might suggest.
Opening Auctions
Given the randomized nature of attribute resolution, acquiring an NFT with desirable multiplier, duration, and durability may necessitate numerous attempts. For LPs investing substantial capital, acquiring such 'great' NFTs would become even more imperative, as they have a substantial impact on enhancing the APY.
To facilitate the sale of such impactful NFTs, an auction mechanism can be employed. This auction would operate on a limited-time basis, following the standard English Auction format, wherein only higher bids are accepted. Additionally, to ensure fairness and active participation, the auction automatically extends by 10 minutes if any bid is submitted within the final 10 minutes of the auction period.
Upon the completion of the auction, 30% of the final selling price is allocated for distribution to veCFN holders, further incentivizing engagement within the Swap ecosystem and rewarding those who hold veCFN tokens.
Amplifying Yield
When applying a Booster NFT, only one NFT can be active at any given time. Furthermore, engaging in actions such as depositing, withdrawing, or claiming yield from the gauge leads to a decrement in the durability of the active NFT by one.
It's important to note that you'll receive the boosted APY only when you claim their yield after the NFT's duration has completely elapsed. Consequently, the durability of the NFT decreases with each claim. Thus, you must carefully consider their initial deposit amounts, taking into account the NFT's duration and your anticipated actions.
Only EOAs can use Boost NFTs for amplifying their yield
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