Yield for NDOL and Necc stakers
In return for supplying collateral tokens to the Necc protocol, Necc yield tokens are distributed to NDOL stablecoin and NECC stakers.
Below is an illustration of how the protocol can be used for farming yield after minting the stablecoin:
Alice wants to sell her tokens and get yield until she is ready to risk on again.
- Alice sells 1 ETH at a price of 1 ETH / 2000 USD to the system.
- Alice receives for her 1 ETH,
(2000 USD - (0.3% swap fee :- 6USD) = 1994 NDOL.
- Alice stakes her 1994 NDOL and receives variable APR in the form of nNECC yield tokens.
- Her yield comes from other users bonding principal tokens for nNECC at a 1% bond fee rate.
- Alice can also stake her NECC tokens for further yield instead of swapping them on secondary markets.
- Alice can swap her 1994 NDOL for ETH or any other token inside the system when she is ready to risk on again.
- Alice can also gain long or short leverage on any volatile token in the system with 50x leverage or use it somewhere else with integration partners.
- Alice could also repeat the same process with her other whitelisted volatile tokens!
Meanwhile staking NECC tokens returns nNECC tokens which rebase per 1 hour epoch backed by NDOL minted from whitelisted collaterals and LP principal tokens.