Naco Finance

Searchβ¦

STAKE

Liquidity Mining with algorithmic adjusted.

Yield Farming has recently been the focus of interest and discussion in the broader crypto community, initiating a new era for DeFi via liquidity mining.

The popular formulas of current liquidity mining are:

Under this model, the whales become the top winners, they can easily take away nearly all liquidity rewards and irrational sellout their yield. And this is a harsh predatory game for shrimps. With the rise of yield farming, whales are the most common concern for DeFi farmers.

To solve this problem and toward a more sustainable ecosystem of DeFi, we create the **Liquidity Mining with algorithmic adjusted.**

Mining Power

In NACO, we used a set of deterministic algorithms for liquidity mining, convert the LP token staked by users into **POWER **(similar to the hashrate of Bitcoin mining), and getting earnings through them. Under this model:

**Daily output per user = Daily output of the mining pool * POWER / Total POWER****POWER = Staked LP token amount * Coefficient of correspondence**

Calculation Formula of **POWER**

We divide users into three ranges according to their staked amount:

- a) Worst range: users with the most staked amount = 1 time rewards
- b) Best range: users with the intermediate staked amount = 5 times rewards
- c) Common range: users with the smallest staked amount = 3 times rewards

For example, User A staked 10 LP Tokens and is currently in the common range, then his **POWER** is 10 * 3 = 30 **POWER**

The numbers of the initial three ranges are [10, 10, total number-20]. As the total number of users increases by 100 people, the worst range and the best, range increase by 10 slots, up to a maximum of 50 people.

β

β

β

β

β

β

β

β

β

β

β

β

β

β

β

β

β

β

β

β

**If tokens staked for minng stay "staked" for less than 72 hrs, 10% of the rewards are deducted if you choose to Harvest then the deducted rewards will be transfered to the Dividend Pool.****Mining Production halved in every 7 days.**

Liquidity Mining Pools

- Pool 1: NACO-BNB -- 20% of the Mining Pool (4,200,000 NACO)
- Pool 2: NACO-CAKE -- 2.5% of the Mining Pool (262,500 NACO)
- Pool 3: USDT -- 5% of the Mining Pool (1,050,000 NACO)
- Pool 4: WBNB -- 5% of the Mining Pool (1,050,000 NACO)

Last modified 7mo ago

Copy link

On this page

Mining Power

Calculation Formula of POWER

Initial Three Ranges

Liquidity Mining Pools