This one is for those who are looking to generate passive income through NFTfi!
❇️ Rewards in $USDC
❇️ Low-cost diversification opportunity
❇️ No compounding and harvesting fees
❇️ Airdropped rewards directly into your wallet
❇️ Cold wallet compatibility
A 🧵 on @orangefi_ ⬇️
In this thread ⬇️
1️⃣ Orange Financial overview
2️⃣ Features
3️⃣ Treasury
4️⃣ NFT card
5️⃣ Concluding thoughts
1️⃣ Orange Financial overview
- A NFTfi project launched on Polygon, which grants its NFT holders with harvested rewards in $USDC
- Offers a low-cost entry to diversify into a basket of high-cost of entry yield farming projects, while maximizing rewards and reducing fee charges
❇️ Simple walkthrough of the process:
1. Public mints the NFT
2. NFT minting funds are used by the treasury for yield farming
3. Harvested rewards are converted into USDC
4. Rewards are airdropped to NFT holders
2️⃣ Features
🔶 Polygon-native
- NFTs and $USDC are native to Polygon, which saves gas fees while having great UX
🔶 Diversification of assets
- Treasury participates in various yield farming opportunities
🔶 Auto-harvest
- Rewards are automatically harvested, saving the user from gas fees to claim/compound
🔶 Zero gas fees
- All gas fees are paid by Orange Financial
🔶 Airdropped rewards
- $USDC rewards are airdropped directly into each NFT holder’s wallet
🔶 Cold wallet compatibility
- NFTs do not have to be staked and can be kept securely in cold wallets
3️⃣ Treasury
❇️ Portfolio composition
- Treasury funds will be used to take advantage of DeFi yield opportunities, unlike some treasuries which function as validator pools and run nodes
- Aims to have a 70% low/medium risk and 30% high risk compositions
· 70% category will comprise of top yield farming protocols and new ones with initial backing and funding
· 30% category will comprise mainly of early-stage projects
Projected composition for low-risk distribution ↓
Projected composition for mid/high risk distribution ↓
❇️ Reward distribution
- Treasury rewards are distributed as follows:
· 50% treasury re-investment
· 45% reward pool
· 5% team fee
- As the treasury continues to grow, it can compound more rewards and have additional funds to take advantage of arising opportunities
4️⃣ NFT card
- A max supply of 10,000 NFT cards, split into:
· 500 Black Card for early adopters
· 9500 Orange Card for public sale
- Each card is valued at 300 $USDC
- No advertised reward or APR as they are dependent on the health and performance of the yield farms and projects that the treasury has invested/placed funds in
- No expiry date for the NFT cards
- Sellable/tradeable on NFT marketplaces
❇️ Minting funds
- Distribution for the minting funds:
· 100% directly to the Orange Financial Treasury for yield farming
· 0% for advertising
· 0% for the team
- The team only earns when the treasury generates yield
5️⃣ Concluding thoughts
- Incentives for the distribution of mint are well aligned, as the team has to be motivated to earn through yield farming
- Treasury composition shows that the team has risk management in place, and also a portion to capture growth in early stage projects
- Cold wallet compatibility helps provide confidence to holders. Airdropping rewards without staking provides flexibility in the NFT usage, and reduces the trouble to stake.
- Rewards in $USDC are welcomed as it reduces the fluctuation of yield (unless depeg happens 😮 )
- Reminds me of the farming-as-a-service (FaaS) days, and NodeFi models. I do not feel it is anything innovative for now, but offers a good avenue for those looking for passive income.