Animal Farm article overview

• Next Defi Destination – Animal Farm
• Animal Farm – Pig Pen Introduction – A great profit opportunity?
• Animal Farm Launch Giveaway – 5’000 USD price to win
• Animal – Piggy Bank – High time-locked bonus ahead

Being loyal is a good thing. Being loyal to the Animal Farm means staking DOGS (AFD) in the Dog Pound. The Dog Pound single asset staking smart contract will reduce transaction costs in the Animal Farm on their DOGS while providing you at the same time a dividend in form of PIGS and BNB tokens.

The idea here again is to not lock your investments forever, but using this dynamic tax system providing a form of incentive to increase your loyalty score by staking. 2/3 of all taxes collected on DOGS (AFD) transactions are swapped for BNB and paid out to stakers in the Dog Pound.

Vesting Mechanic

This is actually quite simple: The longer longer you stake in the Dog Pound, in the smart contract, the higher your loyalty score, the lower your DOGS taxes. The shorter the time your DOGS are active in this ecosystem, the lower your loyalty score, the higher your tax costs for the transactions. The driver is the motivation to stake longer in the Dog Pound to lower your taxes, which is deemed as kind of vesting to reduce your costs on the transaction costs, to have more money available to invest in other things.

Rewards

But there is more: The lower tax transaction costs are only one part of the (indirect) profits. If you compound in either the Auto Compound Pool or in the (Manual) Standard Compound Pool you will earn direct dividends over time:

• Auto Compounding Pool: Here you will earn PIGS (AFP) tokens. The BNB tokens, although these will be automatically converted to AFD/WBNB LP tokens, are compounded in the AFD/WBNB LP core farm, where you can claim your PIGS.
• Standard Compounding Pool: Here you will earn your rewards directly in BNB and can claim it.

Token Loyalty Score

DOGS (AFD) Token Loyalty Score is relative to the amount of tokens staked in the DOG POUND. All AFD must go through the DOG POUND pools to enjoy the tax reduction of 0.75% to 1.00% per day.

You can stake your AFD (DOGS) in either the Auto Compounding Pool which reduces your sale tax by 1.00% per day. Or in the Standard Compounding Pool which reduces your sale tax by 0.75% per day.

Wallet Loyalty Score

There is also a Loyalty Score related to your personal wallet. You can build your Wallet Loyalty Score to reduce your sales tax on all AFD tokens. This will start reducing your tax as soon as you use DOGS (AFD) in the Dog Pound smart contract.

AFD Wallet Loyalty Score refers to your wallet and transaction behavior over time and lowers your sales tax at DOGS (AFD) by 2% per month. Wallet Loyalty Score rewards are permanent and can reduce your total tax on AFD by up to 30%.

Lets assume you stake your DOGS in Dog Pound for 4 months. This is 4x 2% and you will get an 8% lower tax rate. And this is in addition to your percentage tax reduction Token Loyalty Score for all your transactions through your wallet.

Burn Mechanism

There is a deflationary burn mechanism implemented in the smart contract which reduces the total supply of the tokens over time by sending the tokens to famous 0x000 burn address. The same as other tokens are practicing their burns.

• 3% of the sales tax on DOGS (AFD)
• full sales tax (3%) on PIGS (AFP)

Tax

There are only tax costs on the DOGS (AFD) token when you send tokens to another wallet, sell DOGS, unpair DOGS liquidity pairs or interact with a non-native staking contract. Then the following taxes apply:

• Buy AFD: 0%
• Sell AFD: 6 – 90% according to your loyalty score
• Transfer AFD: 6 – 90% according to your loyalty score
• Unpair AFD LPs 6% on the AFD part of the pair
• Dog Pound deposit or withdraw: 0%

Auto Liquidity

The Animal Farm introduces a new liquidity helper contract, where 25% of all deposit fees generated by deposits or withdrawals from and to farms and pools will be sent to in BUSD.

There is no scenario in which DOGS (AFD) tokens are sold or sales pressure is generated in any way to add liquidity.This new contract only accumulates BUSD and when a certain threshold is reached, it buys AFD and adds AFD/BUSD liquidity where it is locked. This should generate a consistent cash flow buying DOGS (AFD) helping with a better price performance.

The contract can also help with burning DOGS. This creates an equal value of the two assets on the contract and the assets are then paired on PancakeSwap where the liquidity is locked.

And with that we conclude the article of the Dog Pound. Thanks for your time and have a great day.

Team / Referral links / Support

Would you like to be part of the Animal Farm? Please use my referral link to support my work. Thank you.

https://defi.animalfarm.app/piggy-bank/0x766D22F6595F86De27d981f5CBc00119E4B23B63

https://defi.animalfarm.app/garden/0x766D22F6595F86De27d981f5CBc00119E4B23B63

0x766D22F6595F86De27d981f5CBc00119E4B23B63

Drip: If you are not yet part of the Drip Network, please feel free to join my team here:

https://drip.community/faucet?buddy=0xb3C253D80578f569cFd4fe2E916EDbF01B384577

0xb3C253D80578f569cFd4fe2E916EDbF01B384577

Time for a short recap on my Drip investment from August 16th, so pretty much 2 months ago. I bought 10.65 Drip Tokens by investing 100 USD into Drip (article here). Token price was around 9.70 USD back in the day. The tokens were deposited in the Faucet to profit from the 1% daily reward and compounded on a regular basis. I didn’t compound on a daily basis, but still regularly. So how does my investment look like today?

Token price

There is some movement in the token price currently. I assume probably due to the launch of the Animal Farm later today (see my other articles). The token is as per the time of writing of this article worth 6.18 USD as per the Drip page. This is a loss per token of about 34% compared to the original investment. As mentioned already in another article, I had probably quite bad timing in entering the Drip system….

Lets now see how much we profited through the 1% daily reward system of Drip in the 2 months (63 days to be precise). I just compounded to show you the current amount I got in the meantime. We started form 10.65 in August:

So per today I do own 19.22 Drip tokens. Not yet doubled, but pretty close to that. The power of compounding interest. Also interesting to see is that with the current price my overall investment is worth 119 USD. Even with the token price decrease we gained around 20% overall.

Conclusion

I still like the Drip system with its daily compound interest system. I do also expect a raise in the token price in the coming weeks and months. Mostly due to the launch of the Animal Farm providing finally a utility for the Drip token. There will be quite some marketing around the two platform which hopefully will help also the Drip token to gain momentum again. We also have to remember that the overall market conditions are still not great. The Crypto Fear & Greed Index shows 22, which is still in the “Extreme Fear” area. Given the current market conditions, my little Drip investment did pretty well with a 20% increase in 2 months time.

Team / Referral links / Support

If you are not yet part of the Drip Network and like to earn also 1% a day, please feel free to join my team:

https://drip.community/faucet?buddy=0xb3C253D80578f569cFd4fe2E916EDbF01B384577

0xb3C253D80578f569cFd4fe2E916EDbF01B384577

Would you like to be part of the Animal Farm? Please use my referral link to support my work. Thank you.

https://defi.animalfarm.app/piggy-bank/0x766D22F6595F86De27d981f5CBc00119E4B23B63

https://defi.animalfarm.app/garden/0x766D22F6595F86De27d981f5CBc00119E4B23B63

0x766D22F6595F86De27d981f5CBc00119E4B23B63

Animal Farm article overview

• Next Defi Destination – Animal Farm
• Animal Farm – Pig Pen Introduction – A great profit opportunity?
• Animal Farm Launch Giveaway – 5’000 USD price to win

Today we will have a closer look at the Piggy Bank. The Piggy Bank allows you to stake PIGS and BUSD LP tokens and provides you with a daily profit of up to 3%. The specialty of the Piggy Bank is the Timelock Bonus: The longer you lock your deposit, the higher your reward. What does that mean?

If you lock your deposit for 4 weeks, you will earn 10%, for 52 weeks, so roughly a year, you will earn 3’813%, and if you lock it for 2 years, you will get 49’767%.

You can also choose to not lock your deposit at all, but based on my current understanding there will be no interest at all. So not quite sure yet on what the add value for the investor is in that case.

Interest multiplier

How does this multiplier work for the Piggy Bank? The multiplier will be applied to the principal stake deposit and not the claimable divs at the end of the staking period. This is to ensure a powerful exponentially bonus reward as the stake compound increases the ROI generated from the bonus multiplied principal.

The bonus is not fully applied to the principal on Day 1 of the time locked stake. It is instead applied to the principal amount using the below displayed distribution curve.

• 30% of the multiplier bonus being added to the principal in the first 75% of the stake’s length
• The rest being added exponentially to the principal in the remaining 25% of the time lock up period

Referral system

The Animal Farm supports also a referral system, similar to what Drip offers already (please see my links below, thanks for your support). Instead of the BR34P tokens used in Drip, the Animal Farm uses a dependency model with a Fibonacci Sequential Progression Model. In other words, the referral bonus you get depends on how many DOGS you have staked in the Dog Pound. The idea is to incentivize DOGS staking and preventing self referrals, which happened a lot in Drip and also other similar systems.

How many Dogs you do need to own?

DOGS STAKED	% REFERRAL
2 AFD	1%
3 AFD	2%
5 AFD	3%
8 AFD	4%
13 AFD	5%

Rewards

Here is an important point to know about the Piggy Bank. To quote from the Whitepaper: “US Dollars have no value in the game”. We remember, you have to stake PIGS (AFP) and BUSD LP tokens in the Piggy Bank. They will be swapped immediately to PIGLETS. And PIGLETS produce TRUFFLES and these can be sold again for AFP/BUSD LP’s and reinvested again.

A Piglet produces a roughly every 30 day a new Piglet. That’s how this works:

PIGLET	TRUFFLE	%
Composed by	2.592.000	100%
Produces daily	86.400	3.33%

In other words: 86.400 truffles * 30 days = 2’592’000 truffles = 1 PIGLET

Tax

On the Piggy Bank the following transactions are taxed:

• Pair AFP/BUSD LP on an external DEX (exception for Pancake Swap)
• Deposit AFP/BUSD LP
• Claim AFP/BUSD LP

LP’s	Pair Tax	Unpair Ta	Wallet Transfer
AFP/BUSD LP external DEX	3%	3% AFP** 0% BUSD	0%
AFP/BUSD LP internal DEX	0%	N.A	0%

Piggy Bank	Tax
Deposit AFP/BUSD LP	5%
Withdrawal AFP/BUSD LP	N.A*
Claim rewards AFP/BUSD LP	5%
Compound rewards AFP/BUSD LP	0%

*Once AFP/BUSD LP is deposited, they are permanently added to the contract pool and cannot be withdrawn.

Interesting for the Pig Pen investors: The PIGGY BANK 5% deposit and withdrawal fees are collected in the form of AFP/BUSD LP pairs:

• the AFP part goes to the Pig Pen dividend vault.
• the BUSD part pays for Dev fees and marketing.

Team / Referral links / Support

Would you like to be part of the Animal Farm? Please use my referral link to support my work. Thank you.

https://defi.animalfarm.app/piggy-bank/0x766D22F6595F86De27d981f5CBc00119E4B23B63

https://defi.animalfarm.app/garden/0x766D22F6595F86De27d981f5CBc00119E4B23B63

0x766D22F6595F86De27d981f5CBc00119E4B23B63

Drip: If you are not yet part of the Drip Network, please feel free to join my team here and earn 1% per day:

https://drip.community/faucet?buddy=0xb3C253D80578f569cFd4fe2E916EDbF01B384577

0xb3C253D80578f569cFd4fe2E916EDbF01B384577

After yesterdays high-level overview of the Animal Farm (Article here), lets have a closer look at the PigPen today. We remember that PIGS or the AFP token is the governance token of the Animal Farm. If you own PIGS, you own part of the Animal Farm and with that you are participating as an owner and get regular dividends in form of PIGS and BUSD. But lets start from the beginning.

Vesting mechanics

PIGS staked in the PigPen represent a share ownership of the Animal Farm platform. And as you are an owner you will earn a part of all the platform fees and the right to vote on the future of the platform. Similar as to owning shares of a company in the traditional world.

To keep the long-term benefit of the platform in mind, a vesting period of 50 days was implemented. This vesting period has not been implemented they way you might think: You cannot sell your PIGS within these 50 days. Nope, it got implemented much smarter in my opinion: You can sell only 2% of your PIGS per day. So at the end you would need 50 days to sell 100% of your PIGS.

Dividend sources

So where does the money for the dividends for the PIGS owners come from? As partial owner of the platform you profit from all the fees paid by the users. This includes deposits and withdrawals of the Liquidity Farms and Pools, taxes from DOGS transactions and fees and yield earned from the Piggy Bank.

In detail, the BUSD dividend comes from

• 1/3 of all taxes paid on DOGS transactions
• 75% of all non-native farms and pools deposit and withdrawal fee
• 30% of yield generated through our collateral re-hypothecation lending model

For the PIGS (AFP) the dividends are gained from

• The AFP part of the deposit/withdrawal fees on unpaired AFP/BUSD LP from the Piggy Bank

Developer ownership

How much do the developers own of the platform? This is always a good question to ask: There is a hard coded 10% lock within the contract to limit the devs ownership. The devs can also not withdraw there deposited PIGS and can only claim the earned dividends.

The BUSD part of the deposit and withdrawal fees on unpaired AFP and BUSD LP (Liquidity Pair) from the Piggy Bank are used for development and marketing fees.

Rewards – How much to profit?

Probably the most interesting part of the article: How much can you earn by staking PIGS? You will earn rewards based on your ownership percentage (obviously).

• BUSD rewards are 3% per day of the Total Vault balance for that 24hr period
• PIGS (AFP) rewards 3% per day of the Total Vault balance for that 24hr period

Quite an interesting investment in my personal opinion.

PIGS and DOGS are getting burned

There is also a burn mechanism implemented in the protocol for PIGS and DOGS, otherwise these wouldn’t be deflationary tokens as stated by the developers. For both tokens 3% of the sales tax will be burnt constantly by getting sent to a 0x000 address. Lets see how that impacts the price over time…..

PIGS Tax

Last paragraph of this article, but an important one. How are taxes structured for the PIGS token:

If you buy and transfer AFP tokens to another address, there is no tax at all. Only if you sell your PIGS you will pay a 3% tax.

There are no taxes on any of the PigPen activities.

On the Liquidity Farms you pay only a 3% tax if you use an external DEX (except Pancake Swap). You will also pay 3% if you sell your PIGS there. So just use the Animal Farm and you are fine.

With that we conclude our article on the PigPen. Any questions or feedback? Always welcome. Many thanks for your time.

Team / Referral links / Support

Would you like to be part of the Animal Farm? Please use my referral link to support my work. Thank you.

https://defi.animalfarm.app/piggy-bank/0x766D22F6595F86De27d981f5CBc00119E4B23B63

https://defi.animalfarm.app/garden/0x766D22F6595F86De27d981f5CBc00119E4B23B63

0x766D22F6595F86De27d981f5CBc00119E4B23B63

Drip: Not yet part of the Drip Network? Please feel free to join my team here:

https://drip.community/faucet?buddy=0xb3C253D80578f569cFd4fe2E916EDbF01B384577

0xb3C253D80578f569cFd4fe2E916EDbF01B384577