Yield Wars: A New Era Of NFT + DeFi

A new and unique NFT concept for DeFi

Clip Finance is introducing a new and unique NFT concept called the Yield Wars. Making NFTs an integral part of Clip’s DeFi protocol ecosystem.

Here’s a quick reminder of how you, as a DeFi user, can be empowered by Clip Finance.

Yield has been one of the key pillars of the DeFi industry since its inception. People want their money to work for them. There is no shortage of innovative products built on DeFi. However, there’s still a need for simple products that everyone, regardless of their prior knowledge or experience, can use with ease.

Clip is aiming to fix that problem by launching the UX-focused stablecoin yield solution as the first product. We believe that all DeFi users need a non-custodial protocol where they can get a diversified yield without having to spend hours per day monitoring their positions, rebalancing and auto-compounding manually.

You may want to take directional bets and speculate with a small portion of your funds or ape into new risky farms and play the game of musical chairs. But with most of your stables, you want to earn a good, safe, and diversified yield.

The custom-built infrastructure we’ve built (called Strategy Router) enables us to launch all types of different cross-chain yield products after the MVP. Upfront fixed-rate yield, AI-managed yield portfolio, leveraged yield, LST products, and a lot more. We’ll be delivering a whole suite of yield products for users with different levels of risk appetite and experience.

The above products are complimented by the unique tokenomics and the Yield Wars. Yield Wars is a new and unique NFT concept for DeFi natives.

What are the Yield Wars?

Apex Yield Wars is an NFT collection of Clip Finance where Legions compete against each other to dominate the Yield Wars and gain control over Clip’s protocol staking rewards. Here’s the overview of how it works:

• Total 10 Legions. Each legion consists of 1000 members.
• Each legion has 1–3 Legion Commanders.
• Legions compete for the Mana. Mana is a scarce resource that is allocated to the Legions based on the weight of their influence.
• Influence is gained by collective TVL provision, referral TVL provision, governance participation, and Clip governance token staking.
• Capture other legion NFTs to reduce the legion influence and gain voting power.
• Develop clever strategies and build a strong community.
• Increase your NFT value through ownership of dominant Legion NFTs.

How To Dominate?

Domination is attained by collecting the most Mana in a battle. Battles last 14 days. At the end of each battle, a snapshot notes the collective Mana accumulated by each Legion. The staking rewards a Legion receives are directly proportional to the amount of Mana it has collectively collected.

Here’s a simple example:

• Revenue allocated to the Yield Wars is $500 000 in a 14-day period.
• Legion 1 collects 400 Mana, Legion 2 collects 280 Mana, Legion 3 collects 150 Mana, etc. In total, all legions collect 1000 Mana.
• This total of 1000 Mana collected is equal to $500 000 in revenue that’s allocated to the NFT holders.
• For instance, if Legion 1 gathers 400 Mana, they’ve collected 40% of all Mana (400 out of 1000). So, they receive 40% of the $500,000 revenue, which equals $200,000. Each member gets a piece of $200,000.
• The same logic applies to the rest of the allocations.

Category weights

As explained above, Mana is collected in 4 categories:

a) Providing TVL on Clip’s platform (depositing stablecoins);

b) Referred TVL (referred users who provide TVL on Clip’s platform);

c) Staking Clip governance token;

d) Voting in governance proposals;

By accentuating both the Total Value Locked (TVL) provision by Legions and referred TVL, we aim to enhance the performance indicators of Clip’s protocol, reaping considerable benefits for the system. Furthermore, staking CLIP tokens carries significant weight, encouraging users to choose staking over selling, thereby fostering a more stable and productive ecosystem.

With a tiered system in place for staking CLIP, the reward increases over time, thus making longer-term deposits more lucrative, and providing additional motivation for stakers. The voting process has been designed to discourage fraudulent proposals for Mana collection. Rather, a single vote per period suffices to garner maximum returns from this category. This approach ensures a fair and efficient reward system, enhancing the overall performance of our protocol.

Here’s an example of how Mana is collected based on contribution:

a) TVL provision $1 = 1 Mana

b) Referred TVL $1 = 1 Mana

c) Staking CLIP: 1 CLIP = 10 Mana

d) 1 Vote (max) = 500 points

We will be publishing an Excel sheet with category Influence calculations on our NFT page and NFT gitbook in the coming days.

Distribution

In recognizing differing contributions among Legion members, we’ll implement a dashboard tracking the top 10 performers in each Legion. Their individual Mana will be magnified with multipliers, allowing them to earn a larger portion of the Legion’s rewards, thus ensuring fair recognition of their efforts. This system not only acknowledges their higher contributions but also ensures a fairer and more equitable reward distribution.

Owning NFTs of multiple Legions

You’ll be required to select the primary collection to which you’ll contribute. This is accomplished through a gasless meta transaction that gets broadcasted on-chain. You’re permitted to switch your main Legion once every 30 days. While simultaneous contributions to multiple Legions are not allowed (unless you possess NFTs in separate wallets), strategically keeping some NFTs idle could help diminish the influence of other collections.

How can you join?

Mint your NFT here: https://www.clip.finance/nft