We’ve teamed up with Dibs.Money, and the NFTART-BNB LP farm will be among the first LP farms available when they launch their new pools and farms. There are many reasons for getting into farming and staking, but there are also risks to be considered. We’ve gathered the fundamentals of staking and yield farming, and how to get started farming with $NFTART on Dibs.Money, so that you can get the full scope from the get-go. Keep reading to get all the details and remember to DYOR. Happy farming!

What does the new farms mean for $NFTART?

Dibs.Money is built on top of the PancakeSwap v2 liquidity pool, so all the liquidity in their farms will help expand the liquidity of the v2 pool on PancakeSwap, which has the highest volume. This means more liquidity where it is needed, which will result in smaller price impacts from trades. In addition, $NFTART holders now get an opportunity to earn $DSHARES and participate in Dibs.Money, at no additional cost. Those who took the chance of joining the $NFTART genesis pool for DIBS at the launch of dibs.money took home some sweet rewards, and we’re excited to yet again offer a chance to harvest some nice APYs with an added utility for $NFTART for old and new holders alike. 

What is staking? 

Staking is a way to earn rewards on your tokens by committing tokens and validating transactions. By staking crypto, your assets are locked by a smart contract until you unstake them. To incentivize users to stake tokens to the protocol, stakers are rewarded in block rewards or from designated reward pools. Rewards can be paid out in the staked token or in other tokens. 

Staking pools usually have a set reward - in the form of a reward pool or block rewards. That means that the more people staking in the pool, the lower the rewards.  Because of this, you can expect APRs to diminish as the locked liquidity increases and more people join the pool.

There are several benefits to staking. You can earn one token while holding another, thus diversifying your portfolio and gaining additional crypto without any cost. You also avoid the risk of impermanent loss, which we shall touch on a bit further down the page. 

What are APRs, APYs and Multipliers?

APR stands for Annual Percentage Rate and designates the interest rate on a particular pool or farm for the year. If a pool or farm has an APR of 100%, you will gain 100% of your staked funds in rewards after a year. 

APY stands for Annual Percentage Yield and designates the yield from a particular pool or farm for the year. The main difference between APR and APY in this context is that APY takes compounding into account, while APR does not. 

Multipliers designate the amount of rewards paid out to a particular farm.

Stake $DSHARE on dibs.money to earn $NFTART!

Before you can start earning $NFTART you need some $DSHARE and a BSC-compatible wallet. To get started with staking, simply connect your wallet to dibs.money and enable the pool by signing with your wallet. After this, you can stake your tokens, sit back and enjoy the rewards.

What is Yield Farming? 

Yield Farming refers to the practice of providing liquidity to a protocol in return for transactional fees and additional token rewards. In essence, liquidity providers provide liquidity for a pairing (like NFTART-BNB) and share a percentage of its transactional fees, proportionate to their share of the pool. As a representation of the staked funds, liquidity providers receive an LP token that can be staked to earn additional rewards. 

Yield Farming rewards you with transactional fees and staking rewards, and you gain the benefit of holding two tokens instead of one, thus diversifying your portfolio.

Compared to staking, yield farming does present additional risks. The risk of Impermanent Loss is ever-present for yield farmers and one should keep this in mind before getting started with farming.

What is impermanent Loss? 

When providing liquidity to a pool, you are exposed to impermanent loss. It occurs when there is a price change between the deposited assets compared to the time of deposit. The bigger the divergence in price, the bigger the loss in token value compared to simply holding both assets separately. The loss is deemed impermanent, because the lost value can be redeemed, given that the prices ratio of the two assets return to what it was at the time of deposit. In that sense, the loss is only realized when the assets are withdrawn from the pool. To a degree, Impermanent Loss is offset by both transactional fees and staking rewards, but one should always be wary of this when yield farming. 

For a more in-depth account of Impermanent Loss, we recommend checking out this article from enter.blog, as well as this article from Uniswap.

$NFTART as a mitigation toward impermanent loss

Due to the deflationary and reflectionary properties of $NFTART, impermanent loss gives a bit of a different result, when $BNB is the falling or stagnant asset. In this case, $NFTART is converted to $BNB without being subject to the transactional tax, because the conversion happens off-chain, and users effectively get a 10% discount on the converted funds when splitting the pair, as well as another 10% discount if they were to sell it. This gives a sort of discount on impermanent loss, if $BNB is the falling asset in a BNB/NFTART pair. 

You can farm NFTART-BNB on dibs.money’s farms!

Before you can start farming, you need a 50/50 split of NFTART-BNB. When you have that, you can navigate to PancakeSwap and add the liquidity here. Find the relevant contract addresses here and here. 

After adding liquidity and receiving your LP-tokens, you will start receiving rewards in the form of transactional fees. By staking the LP-tokens on Dibs.Money, you will start receiving additional rewards in the form of $DSHARE. You can harvest your rewards whenever you want, but you should be aware of the gas fees before you press harvest.

Harvested $DSHARE can be staked to earn $NFTART or in the Piggybank to earn $DIBS. 

When you want to unstake your LP tokens and split them, withdraw them from the farm, and go to PancakeSwap to split them to receive your tokens.

NOTE: $NFTART is deflationary, and the 10% transactional fee is still intact when transferring to or from LP tokens. The LP tokens do not have any tax when moved or staked. The total tax for joining and leaving the farm is 20%.