Narwhalswap Project Review: A Decentralized Exchange With NFT-Fi Integrations

NarwhalSwap innovated on traditional Decentralized Exchange (DEX) models, using Automated Market Maker (AMM) technology, Non-Fungible Tokens (NFT’s), Staking, and Yield Farming to bootstrap liquidity.

By
Rich
on
January 29, 2021
Category:
Project Insight

Narwhalswap Project Review

A narwhal and a unicorn both have horns, just like the unicorn roams the De-Fi landscape on the Ethereum Network (Uniswap), as for the Binance Smart Chain (BSC) we have Narwhalwap. Narwhalswap has been around for some time now, as it was one of the first projects that was launched on the BSC back in October 2020. The protocol offers a Decentralized Exchange (DEX) using Automated Market Maker (AMM) technology, Non-Fungible Tokens (NFT’s), staking, and yield farming. Overall, Narwhalswap pushes the boundaries of traditional DEX’s innovating in the De-Fi space.

NAR Farming and Staking

Narwhalswap offers multiple ways of earning $NAR tokens; on the NAR Farm page, you can select from 2 pairs BNB/NAR and BTCB/NAR. The current annual percentage yield (APY) is bountiful with  255% for the BNB/NAR pair and 424% for the BTCB/NAR pair.

To enter these farms, you will have to create a liquidity Provider token (LP) using the Narwhalswap AMM (exchange). First, start by selecting the “pool” sub-tab and then pairing the assets you want to create liquidity for ie: BTCB/NAR.

Another possibility to earn more $NAR is to stake them; to do so, navigate to the “Gem” page, this brings multiple advantages because staking  $NAR will also reward users in $GEM tokens on top of your staking rewards. The staking rewards can be buffed up to the maximum buff rate, which is 15. You can update your buff rate every 24 hours from the time you entered; each time a buff is applied, your multiplier is set 50% higher. Users can do this for seven days until updating the buff rate is no longer possible, as the maximum buff rate has been reached. The buff rate update requires a transaction and will cost some gas fees.

The $GEM token can be used for staking in the GEM Pools; although there are currently no projects partnered in their GEM Pools. Luckily, there are multiple use cases for this token; users can also use it to stake for $GOLD tokens at the GOLD tab.

At the GOLD tab, you can see several options for staking to get $GOLD tokens. The most straightforward way is by staking your $GEM tokens, but you could also choose to create an LP and provide that for staking $GOLD.

Current $GOLD staking pools consist of: GOLD/BNB –  THUGS/NAR – BUSD/BNB – BTC/BNB – ETH/BNB BLIQ/BNB LP pairs and the solo asset $GEM pool. 

Because some pools have a higher multiplier than others, pairs like GOLD/BNB with a 20x multiplier receive a higher allocation of tokens versus pairs with 5x or 2x multipliers. These multipliers are typically skewed to represent a specific pair’s risk and popularity, so choose wisely when creating an LP for one of these pools.


So what can I use the $GOLD token for?

$GOLD can be used to get the Non-Fungible Tokens (NFT’s) from the “GACHAPON” on the NFT tab. Gachapon is not always active so pay attention to when the team announces the new Gachapon, and in the meantime save up on your $GOLD. It is important to note that the first try for the Gachapon will cost you 10 $GOLD tokens; any further attempt will double the cost, so the second one costs 20 $GOLD the next 40 $GOLD and so on…


NFT-Fi

NFT’s provided by the Gachapon or obtained from the Bazaar (Marketplace) are specifically designed for the NarwhalSwap ecosystem. These NFT’s will give you bonuses and buff rate multipliers, increasing farming opportunities.

There are 22 different NFT’s present in the ecosystem, with more to come. These are categorized into 5 different kinds of NFTs, each available in 5 grades; Common, Rare, Epic, Legendary, and Transcendent.

These NFTs can be acquired through the bazaar tab:

  • Potion Runes Buff rate refresh increased from 55% up to 105% depending on the grade  
  • Rank Runes  Initial buff rate increased from 1.2 to 3 
  • Refine Runes Maximum buff rate increased from 3.8 to 9
  • Shovel NFT Mining power 1200 to 2000
  • Christmas NFT Buff rate refresh increased to 75% (only one grade)

There is one more, the Empty Box NFT, which does nothing. As you can see, most of the NFTs will grant users buffs on your liquidity or staking incentives; the higher the grade, the more buff rate you will get. 

There is also a shovel NFTs that are unique as they will allow you to mine $SATO. The $SATO will be used for the next phase of NFTs on the platform, the upcoming Conquerer Runes. These single grade, extremely rare runes will give a massive buff rate (four digits). These NFT’s will likely be super scarce as the only way to get them will be by spending the $SATO received from mining using a shovel NFT.

Tokenomics


There are 4 tokens in the Narwhalswap ecosystem; the $NAR token is the project’s governance and equity token, while the $GEM $GOLD and $SATO tokens are used for staking or minting NFT’s.

$NAR

$NAR will have a maximum supply of 21,000,000, which has already been brought down to 20,167,956 tokens after some burns. As this token follows an emission schedule, there are currently  11,939,149 $NAR in circulation or about 60% of max supply.

The $NAR token has a built-in burn mechanism that will burn 5% on every transaction, being it buying or selling, transferring between accounts, staking or harvesting, you will burn 5% of your tokens.

What happens with the burnt tokens? Half of the 5% will be destroyed forever, and the remaining 2.5% will flow into the dividend pool to be distributed to the Liquidity Providers/users.

For those who wish to learn more about Deflationary Tokenomics models, check out the following article:

Cryptonomics: Deflationary Tokens

When users make a trade on the Narwhalswap AMM, the 0.3% trading fee will be used to buy $NAR  tokens and then distribute them to the Liquidity Providers.

$GEM

$GEM is obtained when you stake your $NAR tokens the amount of $GEM that you get is equal to the amount of $NAR tokens that you have put in. The total number of $GEM tokens is dependent on the number of $NAR staked for $GEM. There is no burning mechanism, and it is not intended to be traded. Its only purpose is staking, either in the Gem Pools or for $GOLD.


$GOLD

The use case is simple; you will need $GOLD to operate the GACHAPON, which will give you NFTs that you can use or sell at the Bazaar.

Gold can be attained by buying on the Narwhalswap AMM or by staking.


$SATO

SATO is only obtainable by using Shovel NFTs. Currently, there is not much information on this token yet, other than that it will be essential in getting the announced Conquerer Runes.


Closing Thoughts

Narwhalswap, as one of the early birds here on the BSC, they have continued to innovate their product adding new kinds of NFTs and offering a good AMM.  The team is ever-expanding revenue streams, the $NAR token with its maximum supply and burn mechanism (which makes it deflationary), among other factors such as the great community and good team, all contribute to its successes. 

While the team has been hard at work, the NAR token has experienced very low volatility since its October highs. While the token is nowhere near the initial value the team still continues to develop and drive value to the platform. As the bull-market continues its course and the BSC continues its rapid expansion Narwhalswap is a project rooted in the BSC.

For more information, take a look at the project's media channels.

Website

Twitter

Telegram

Medium 


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Rich

Richard is a multilingual writer, located in the Netherlands, husband and father, cryptocurrency and tech enthousiast enjoys long walks and bicycle rides. Fervent Binance Smart Chain projects promotor.