Our next step on our Defi journey will be the Animal Farm. Nope, nothing to do with the book of George Orwell, but more with Forex Shark. He is the founder and developer of the Drip Network. As you probably guessed in this second, these two Defi powerhouses will be closely linked together.
The Animal Farm goes live in 3 days, so on October 18th. As I started to see and read more about it, I wanted to understand it myself. So here is a first high-level overview of the Animal Farm.
What is the Animal Farm?
As per the Whitepaper of the Animal Farm, it is the first deflationary, fully decentralized ownership yield farm and lending protocol in Defi. Participants earn as owners of the network through a governance token. The main focus of the Animal Farm is on lending and yield aggregation. A simple comparison would be, as per my basic understanding so far, Pancake Swap.
There are two native tokens in the Animal Farm, or you could say animals: PIGS (AFP) and DOGS (AFD). The PIGS are the governance tokens of the platform, while the DOGS are the native farming tokens. Both tokens should support each others through their unique tokenomics.
If you stake PIGS, the governance token, into the PigPen you are one of the owner of the Animal Farm. This allows you to farm even more PIGS and BUSD. Pigs can be re-compounded and BUSD claimed (and re-invested if you like).
The vesting model of the Animal Farm goal is to incentivize investors to not sell (dump) their assets, but to earn dividends in form of BNB and BUSD tokens. This should keep the prices of the native tokens stable or preferable to let them grow over time.
The variable tax on DOGS (AFD) token transactions start with a transaction tax between 6 and 90%. If you stake in the Dog Pound, this is like the loyalty pool in my understanding, you will reduce the DOGS tax by 0.75 to 1% a day while earning BNB or PIGS (AFP) as dividends. This is intended as another stability measure on the native tokens.
Dynamic Emission Rate
Another price stability measure for the native tokens: The dynamic Emission Rate is based on the current demand of the Animal Farm tokens. As every market there will be demand and supply. So higher the Demand, the higher the price, the higher the Emission Rate. So if the tokens reaches an all-time high (ATH) the emission rate will be set to 100% and will remain there until there is a price drop of at least 25%. A pictures says more then 1’000 words, so here it is:
And what is the relation to Drip?
As a Drip user (if you are not, please see team links below) you will have finally a utility for your Drip tokens. And I am sure, this was one of the reasons, why the Animal Farm was created: There will be Liquidity Farms using Drip. Yes, you can Yield Farm with your Drip tokens. The pairs which are visible in the Animal Farm already are DRIP/BUSD and DRIP/USDC. You can choose if you like to farm more PIGS or more DOGS. The APR’s are not yet known.
So far to a first introduction to the Animal Farm. More to follow soon, as I got more to learn myself here.
Have a great weekend.
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