The Farming Conundrum
A major issue with farming nowadays is that yield is typically paid out in one specific token. Usually a project token, the farming requires users to stake liquidity tokens in order to accumulate yield. The required liquidity tokens are typically for the yield token’s liquidity pools. This can work rather well for the project and community, but has limitations. There’s also inflation issues, Impermanent Loss, and ultimately, Permanent Loss.
If only there was a way to expand the use case of farming pools and staking mechanisms…
The Project Visibility Problem
DeFi and crypto is an extremely dynamic space. New projects are launched on a daily basis both with fresh ideas or simply full on clones with a little bit of meme magic. However, a big issue with these launches are marketing expenses. Promotional airdrops are one way to help, but with current transaction costs the team might as well add it to liquidity. Twitter marketing is an option as well, but that can lead to unnecessary dumping upon launch. It’s a tired dilemma.
Rocket Drop: A New Way to Farm, Distribute, and Grow Projects
The above mentioned problems are simply dealt with as a part of crypto. However, the status quo doesn’t typically last long in our space. That’s why we’ve decided to release Rocket Drop.
Rocket Drop is a farming/vault contract that allows users to stake any ERC-20 token into designated pools and obtain yield. What makes this different from other farming contracts is that it allows the creation of pools that pay out in the same token that is staked. Additionally, it allows the creation of farming pools that distribute yield in any other ERC-20 token, even WETH. This allows us to open farming pools for virtually any token quickly and cheaply, all within the same contract.
The aim is to create a vast array of project collaborations that benefit both our ecosystem and the partner ecosystem. For example, if a project wishes to increase adoption/awareness of their token, we can easily create a pool with a predetermined APY yield paid in the partner’s token. Users would simply stake Rocket Bunny or Corlibri (our sister project) into the farm and collect their yield over time. This creates immediate visibility for the partner’s project and new adopters of their project instantaneously. It also allows a new and unique incentive structure for those involved, including our users.
The sustainability of the above scenario is provided by an optional fee structure with the partner. If decided, the pool may collect a small fee from each participant in the form of ether or the token staked. This fee is then split automatically between the Rocket Drop reward fund and the partner. Not only does this provide the distribution sought out by the partner project, but can also fund immediate liquidity for new projects.
Rocket Drop is an alternative to the typical pre-sale/IEO/ICO structure. It allows a project to obtain liquidity from new users without them having to risk funds in a new listing. The risk friction is thus greatly diminished.
Rocket Drop code is ready right now. It has been painstakingly developed under the radar over the past few months. We plan to deploy our first iteration within the week. Staking will be opened shortly thereafter, with initial pools paying out from our existing ecosystem. These pools will be funded directly by our team.
Stay tuned everyone for the official launch, and don’t forget to HOP ON THE ROCKET!