update 11 October 2021

A Better Way to DeFi- NFY Finance Platform Full Review

Decentralized Finance (DeFi) has witnessed incredible growth in recent years, with over 1 000 DeFi platforms in existence today. And as the DeFi space continues to expand, a new approach to DeFi projects has emerged involving ERC-721 Non-Fungible Tokens (NFTs). 

DeFi platforms have traditionally used ERC-20 tokens, but current advances in the DeFi space have seen the introduction of ERC-721 tokens. These are non-fungible tokens, which means that each token is unique, i.e., a unique token id is given to each token at minting. 

Currently, ERC-721 tokens are mostly used as collectibles and haven’t found extensive use cases in the DeFi space. However, this is set to change with the introduction of NFY Finance – a DeFi platform seeking to utilize the full potential of Non-Fungible Tokens (NFTs) in the DeFi sector. This article will shed light on Non-Fungible Yearn (NFY) and how it will transform the DeFi sector by creating extensive use cases for ERC-721 tokens in the DeFi space.        

Non-Fungible Yearn Finance Overview

Although ERC-20 tokens have been popularly preferred for staking on DeFi platforms, crypto experts have noticed that they congest the Ethereum network. This congestion is what has led the network to be slow and heightening transaction fees. So, how does that happen? The constant staking and un-staking funds in farming protocols interact with smart contracts increasing gas costs, making the network expensive for every user. Well, ERC-721 tokens is a solution to ERC-20 tokens’ shortcomings to prevent Ethereum network congestion.  

Non-Fungible Yearn is a DeFi platform that leverages ERC-721 token, i.e., NFY tokens, to enable users to earn rewards via staking. Unlike other DeFi yield generating staking platforms, NFY Finance takes a different approach to DeFi staking by minting non-fungible tokens (NFTs). On the NFY Finance platform, users holding NFT tokens earn accrued interest or redeem the underlying tokens. 

NFY Finance is essentially encouraging DeFi users to desist from un-staking their tokens once they’re done with a staking platform. Unstaking causes network congestion and consequently increases gas fees. Instead of unstaking, token stakers can seamlessly transfer the rights of the stake itself to a deserving party. 

Rather than unstaking, NFY Finance supports the simple and cheap transfer of NFT tokens on its own trading platform. Using NFT tokens, NFY Finance eliminates network congestion and does away with expensive redeem transactions involving un-staking of tokens. 

NFY Finance Key Features

  • Staking

NFY enables users to stake their various crypto holdings in multiple staking pools and earn NFY tokens in return. Unlike traditional DeFi staking platforms, which allow a user to earn staking yields based on the staked amount in their wallet, NFY employs a different approach. The platform’s staking process is the same as any other staking platform, but users’ wallet address is not linked to a stake. 

Instead, NFY offers users’ ownership over the staked funds and the yield the stake bears. Once a user stakes on the NFY Finance platform, an NFT token is minted and stored in a specific user’s stake. This is achieved via referencing the user’s stake using a unique token ID and then sending the stake to his/her wallet address.  

Currently, staking on the platform is done in two major pools, i.e., $NFYs and $NFY/ETH LP. The platform requires users, i.e., first-time stakeholders, to approve the staking smart contract before staking in each pool. This is done using the stake NFY and NFY/ETH LP buttons. After successful staking approval, users are then required to click on the aforementioned buttons for a second time to enable them to stake their tokens.

The $NFY staking pool is allocated 0.10% of the balance of the reward pool daily. This is based on the assumption that there are 6 500 blocks minted in a day. The $NFY/ETH LP staking pool is allocated 0.30% of the reward pool daily, split proportionally between stakers. This staking pool doesn’t offer an unstaking option once users have staked on the platform. The total reward pool is 60 000 $NFY. 

  • Un-staking

While  Finance discourages un-staking, users can still unstake their deposit from the platform, destroy the NFY, and return the stake funds. However, to discourage un-staking, NFY charges a 5% un-staking fee, sent to the user’s wallet address. The 5% charge then gets redistributed back into the reward pool, creating a self-sustaining system that encourages users to trade NFT. 

  • Liquidity Locking

NFY Finance locks a user’s NFY/ETH liquidity token in the platform forever. However, the platforms only lock the LP tokens and not their value. This is achieved by minting NFTs and integrating the value into the locked ERC-721 token.  

  • NFY Trading Platform

The NFY trading platform allows users to trade their stakes. The trading platform doesn’t require users to sell their entire $NFY or $NFY/ETH LP stakes. Instead, users can trade any amount of their staked position. 

While NFTs themselves are not intended to be sold, their makeup can be traded on the NFY Trading Platform. The platform charges 1% of the value of all trades as a transaction fee. The fee is split as follows: 0.90% reward pool, 0.05% community fund, and 0.05% dev fund 

Final Thoughts – NFY Finance Full Review

Constant staking and un-staking on the Ethereum blockchain lead to higher transaction fees and slow confirmation times due to excessive congestion in the network. Non-Fungible Yearn seeks to eliminate the culture of unstaking with the introduction of ERC-721 tokens, i.e., NFT.  

On the NFY platform, there is no need to un-stake your tokens if you don’t want to stake anymore. You’ll sell the NFT tokens or its portion at market price and keep the rest. Since all details are stored in the specific token, the value of the NFT is automatically updated, and a new one is minted for a new buyer. If a buyer already holds NFT tokens, the one purchased will be added to their portfolio. 

Though still at initial stages, NFTS and ERC-721 tokens have endless potentials in the DeFi sector. This token is set to solve the shortcomings of ERC-20 tokens and make DeFi platforms sustainable and efficient. Watch out for an ERC-721 boom soon. Note that the NFY staking platform is already out, and the NFY trading platform is set to be launched by the end of November.

Useful Links

Btc
Bitcoin
$61.973
price
1.12676%
price change
BUY NOW

Website | Twitter | Telegram | Audit Report

Disclosure: This is a sponsored post. Readers are encouraged to conduct further research before taking any action. Furthermore, Crypto Adventure does not endorse any crypto projects cryptocurrencies listed, mentioned, or linked to on our site. Learn More

More posts

MiniFlokiADA Review – A Look at The New NFT-based Project

MiniFlokiADA is a crypto project that helps users earn passive income and NFTs from gaming and Elon Musk’s tweets. Its official launch took place on October 22, 2021. When he doesn’t influence Bitcoin’s ups and downs, Elon Musk unwittingly inspires countless projects to surface on the blockchain. Also, it doesn’t take much for Tesla’s CEO to trigger an avalanche of crypto projects. For instance, his latest pet friend, a Shiba Inu he calls Floki, has galvanized the community into launching…

Baby Floki Up Review – The Hyper Deflationary Pup of the Doge Family

Baby Floki Up is a hyper-deflationary token of the emerging Doge family. It’s aim is to increase investors' wealth and achieve healthy, long-term development. The Doge family is growing to the extent that not even the #DogeFather himself, Elon Musk, couldn't have anticipated. As it stands, numerous projects look to monetize the rapidly increasing fan base of everything Doge. One of these projects is Baby Floki Up, a fan-generated token, allegedly $FLOKI's younger brother. With a dynamic buyback mechanism and…

My Shiba Academia Heroes Review – Gameplay, Features, NFTs

My Shiba Academia Heroes is a collection of 25,000 playable NFTs in an upcoming MMO game on Ethereum. The collection drops in November 2021. The market for NFT-based games is rapidly emerging. Every day, new projects kick off and bring together two of the largest new-gen demographics, gamers, and NFT collectors. Above all, they provide a fun and easy initiation to the blockchain through engaging DeFi applications and flashy games. Today, we look closer at one of the latest projects…

Safechaintoken Review – Token Swaps, Staking, and NFTs

Safechaintoken ($SCT) is a hyper deflationary utility token for the forthcoming token swap platform, SafechainSwap. The project is new but advancing fast. Besides token-swapping services, Safechaintoken also aims to evolve into a DeFi ecosystem for DApps and NFTs. In this future venue, users will be able to stake their tokens and practice token farming, all at minimal costs. In this Safechaintoken review, we look closer at one of the most recent projects dealing in hyper deflationary tokens. Read on to…

Freemoon Finance Review – Features, Solutions, and Roadmap

Freemoon is a decentralized financial ecosystem looking to solve the current issues with deflationary tokens and blockchain systems. Since the decentralized finance craze of 2020, numerous projects have surfaced on the crypto scene. Some of them attracted billions of dollars and thousands of investors. Nowadays, they are thriving and spearheading the DeFi revolution. Unfortunately, not all of them followed the same course. And some turned out to be money-grabbing scams. Among them, high-yield investment programs (HYIP) seem to take the…

The Ultimate Guide to WAVES – Features, Performance, and Tokenomics

As of October 15th, 2021, we have 7.800 existing cryptocurrencies. And, while you're reading this, more of the surface on the blockchain. In addition, you can discover at least one new, promising project every 24 hours. And, today we look closer at one of these up-and-coming crypto initiatives, Waves. Read on to discover how this new crypto jumped straight to the 49th position in the market cap hierarchy. Then, find out how it works, if it’s worth the investment, and…

ART HAUS Introduces Artists in Residence – Empowering Creators with NFTs

ART HAUS recently launched a unique NFT platform to help artists monetize their creations. The new program enables creators to host an auction of their collections as non-fungible tokens. Alternatively, it provides collectors with a better chance at buying unique art pieces at cost-effective rates. ART HAUS - More Power for Artists and Creators ART HAUS is an artist residency platform that aims to enhance the impact of art and NFTs in the metaverse. Its goal is to allow creators…

How Users Earn Cryptocurrency with Instars.com

In recent times, blockchain technology continues to gain traction in almost every industry area, with digital currencies like Bitcoin and Ethereum being the most prominent in the cryptocurrency space. But, as the world evolves, so does the trend in the crypto market. Today, significantly more people are sourcing for new digital currencies that would potentially expand and appreciate. One of these leading platforms is Instars.com, a cryptocurrency that drives the Instar Blockchain. What is Instar? Instar is an innovative digital…

Axie Infinity Review – Gameplay, Rewards, and Tokenomics

Axie Infinity is a blockchain-based pet universe where anyone can trade gametime for crypto and easily redeem it for fiat. Some call it a mix between Pokémon and CryptoKitties. Others see it as the next generation’s Fortnite. And, most people play it to earn an extra buck while watching fluffy critters battle each other. Axie Infinity embodies all these concepts but promises even more for its rapidly growing userbase. For instance, it has an extensive marketplace where players can trade…

Arker Review – Gameplay, Rewards, and Tokenomics

Arker is an online multiplayer role-playing game (RPG) that enables users to earn cryptocurrencies as they play. As the blockchain revolution rages on, the crypto sphere expands to incorporate more markets with exciting applications. Among them is the rapidly emerging sector of blockchain-based online gaming. Contrary to traditional video games, these applications allow users to boost their crypto income by completing quests. Arker: the Legend of Ohm is one of the latest gaming projects to embrace this concept. The game…