How Golff Protocol is Redefining Liquidity Mining
Liquidity mining is a new concept in the world of finance and so is farming. These have been very popular over the last year.
There are now 4 popular networks (Binance Smart Chain, Ethereum, Polygon, HECO Chain) and a handful of others that are growing by day. Those nest a huge number of projects offering a variety of products and strategies for you to choose from.
However, most of the projects are forks of PancakeSwap or UniSwap. What this means is that they are not really offering too much added value, not fundamentally.
Most DeFi projects just add Layers
DeFi projects don’t work on the fundamentals, they just add more layers to the fundamental thinking.
Most projects add lotteries, NFTs and NFT marketplaces, games, gambling, and tweak some parameters. These can add a lot of utility for the native token and for the community of investors, but the features are not the core of what Yield Farming is.
There are a few projects on the market that truly innovate the fundamental investing strategies. Usually the big players do, such as Uniswap V3 and PancakeSwap V2. But Golff Protocol is also one of the players that create fundamental value to Yield Farming by optimizing investing strategies.
How Golff Redefines Investing Strategies
Have you ever heard about layered farming? It’s a concept that is very interesting and there are some projects exploring it.
Golff Protocol has thought about some of the same fundamentals, but before layered farming became a thing. Plus, the project has rethought the whole investing process of Yield Farming.
If you didn’t read the Golff official documentation, I invite you to do so here. They are creating new investing strategies and optimizing them continuously.
Some of the features they use are linear release of income, strategic automatic adjustments, overlay mining revenue, reapers, reducing slippage and increasing revenue. In order to maximize profits and yield, the Golff Vault machine gun pool (which is an awesome name) automatically switches between strategies.
The purpose is not to explain each of these features, mainly because they are highly technical. If you want to find out more about the complex tokenomics of Golff Protocol, please visit the official documentation.
To add on that, they also use ingenious strategies for Farm such as multiple rounds of gameplay iterations and more exciting revenue upgrades.
Moreover, they have the governance feature, which means that the community chooses what it thinks is best for the future of the project and investors by proposing ideas and voting for core team’s proposals. The project is community-driven to the bone.
How does Golff Yield Farming actually work?
When diving into tokenomics, you will find an enormous complexity of strategies and thinking processes that are hard to wrap your head around, even for an Economics graduate.
BUT, fortunately, Golff has done an incredible job in simplifying the investing (and withdrawing) process.
I mentioned a link between layered farming and Golff approach. This is an erronated view, but it helped me easier visualize how the whole process works, and I’m about to explain why and how.
Golff Vault and Farm for token pairs
When you want to farm a token, you first need to exchange your tokens for an LP Token. That is, unless you want to use the single-staking feature, but I’ll get to that.
After you get your LP tokens, you will convert that for a GToken.
What is a GToken? you might fairly ask.
Well, a GToken is a token that bears interest. It is a wrapped version of your LP token which is meant to generate interest by auto compounding once every 1 hour, 4 hours, or more, depending on the dynamically and automatically chosen strategy.
The best part is that you can further farm those GTokens to further receive rewards in GOF, the governance token of the project. So your Gtoken will auto compound, and you will also get the GOF rewards for farming it. Isn’t this neat?
Golff Vault and Single-Asset Vaults
When it comes to the single-asset staking, the same principles apply. The only difference is that you don’t have to buy any LP token, as you already have the asset in your wallet. You deposit it and get GTokens in return, these auto compound to generate interest, and then you can farm them to get GOF rewards.
The only asset that doesn’t auto compound is the GOF token itself, which only generates rewards from farming it.
Example
I want to invest in the CAKE-BNB pool.
- First, I need to add liquidity on PancakeSwap and receive my CAKE-BNB LP tokens.
- Then I will deposit those to get G-CAKEBNB Token that auto compounds.
- Therefore, you will have more G-CAKEBNB tokens in a month from now (that you could convert in more CAKE-BNB LP tokens) than you do now.
- After I do this, I can Farm the G-CAKEBNB token to receive rewards in GOF.
In this way, every day I will get more GOF in rewards because I simply have more G-Tokens staked due to auto compounding.
Closing thoughts
DeFi space is growing every day. There are dozens of new projects popping up every week. But most of those are just forks of popular projects and will just change some parameters and add some layers (apps such as lottery, NFT Staking, etc.) just to add utility to the token and provide a good experience for the investors.
Golff, however, is playing a serious game. It is focused on solely creating new investment strategies and optimizing the fundamentals of Yield Farming to provide better returns for investors. The utility of the token comes from the ecosystem they build and from governance.
About Golff Protocol
Golff is an One-stop services encrypted bank, to create a light, open, and free financial world. Golff DeFi products have low threshold, fast and smooth using experience. Multi-version, localized product design, catering to the needs of eastern and western users. Golff’s three core products are Earning Collection, Financial Enhanced Insurance, and Lighting Lend. Visit Golff.finance to learn more. Also subscribe to Golff Protocol on Medium.
