NFT Farming

04.11.2021 14 1705
NFT Farming

NFT: What?!

And What About NFT Farming?

NFT Farming and Gaming Industry

Great DeFi Gaming Platforms for you to Check

Possible Downsides of NFT Farming

Frequently Asked Questions

 

When the 21st century hit us, we all noticed how fast and well the IT-sphere started to develop: with its exciting innovations in the Internet, software programs, and coding languages starting to appear in our lives, we thought that there was nothing else that could surprise us anymore.

But coronavirus showed us wrong. It turned the lives of the whole planet upside down and only helped all of us to turn our services online.

 

What else? It helped a whole new business platform with its items called NFTs (sounds like something from outer space, right?) to spread its influence, something that we could not even think about a few years ago!

The first idea and the trial for the NFT projects to work appeared some years before the pandemia, but only in the time that fell under its influence did the NFT technology start to spread so drastically!

 

At this stage, there are so many spheres that were widened and changed with the help of NFT tokens: music, video, art, gaming industry; there is even a new concept now, called NFT farming, and people actually earn rewards there, big ones!

 

And yes, we understand that the fact that NFTs are so popular right now does not guarantee that you know what it is or know it very well. Do not worry, and we got you covered here.

 

In this article, you will be able to understand what NFT means in general, as well as meet its new achievement - NFT farms.

 

NFT: What?!

Yes, we understand that it might be hard to understand what NFT stands for from the first try, but we will do everything that we can so that you will be able to grasp its meaning.

 

Generally speaking, NFT can be deciphered as a Non-Fungible Token.

What can be an NFT? As our experience shows us, the number of different things that are being created as NFTs only grows! Music, videos, GIFs, texts, game-related items, digital art: we can go further, but we think you got our point.

 

They are also considered to be non-fungible tokens, which means that they are one-of-a-kind creations that do not have any legit duplicates or copies somewhere else. For example, bitcoins are, all the same: there is no difference in which one would belong to you: if your friend had asked you to exchange your for his or hers, you would not have any problem doing that.

 

But that would not work with NFTs: there is simply no equivalent to them. Of course, you can go to some NFT space platform, make a right-click and download a picture that you liked, but you would not have any legitimate rights to it: you cannot sell it and get rewards from it, as well as download it online without a reference to its author. Otherwise, it would be plagiarism, which is not legal.

 

Basically, when your work is considered to be an NFT, it is placed on particular blockchain technology, such as the Ethereum one, where all the needed information about the author, the future holders, and prices are stored. NFT is like a digital certificate: as the usual fine art has one, so do NFTs.

 

The certificate is only in one copy: only the real owner can have it so that it would be able to protect the owner's rights.

 

Where can I Find Them?

NFT tokens are sold on digital platforms that are compatible with NFT technology. You can think about these platforms as kind of specific tools that are used for selling and buying NFTs.

 

All of them are based on cryptocurrency, which is important for you to know about.

 

Also, not that stakers cannot use their real money when buying an NFT token; they have to exchange them for the kind of cryptocurrency that their NFT platform is asking for.

 

Possible NFT platforms for you to choose from:

 

  • OpenSea
  • Rarible
  • Nifty Gateway
  • SuperRare
  • Foundation, etc.

 

All of them can have different terms, such as the way of letting new people go (all-in or invitation-in), types of cryptocurrencies and NFT projects that are allowed, and so on. Be careful when choosing one, so that you would not regret spending your money on it.

 

And What About NFT Farming?

For starters, it definitely does not have to do anything with farming. Tricky, right?

 

NFT farming is simply a process under which users receive an NFT token as a reward for something else. It is a new NFT concept that came out of a merge of NFT and DeFi technologies, the last one standing for decentralized finance.

 

With NFTs being used in this way, they become more useful and gain higher liquidity, as now NFT users actually have incentives to buy them in order to exchange for something else or gain a reward. In addition, it strengthens the NFT community, as the users can make and stake collections together, as well as chat during this process, or even become friends.

 

So "Farming" here is just an expression that can help you to understand the new way of using NFT space: just as with the yield farming, where the user gets the interest for his or her deposits, NFT farming works quite the same, only NFTs or staked tokens are received as rewards.

 

Not sure whether you understand what yield farming and DeFi mean? Then we will gladly explain these concepts to you further!

 

Yield Farming

Another interesting term for you to get acquainted with, we think.

Yield farming can be understood as bank loans: the bank gives you a certain amount of money that you need to return back together with an interest rate. Simple, right?

 

Well, yield farming works in the same way, but only in the NFT world: there is a person that is ready to give you out some amount of his or her cryptocurrency so that you would be able to enter NFT platforms, pay for its fees, and so on. But, of course, your stakers will expect some rewards in return, which would be an interest from the sales of your NFT projects and their trading fees.

 

Hope that now you know how this concept works!

 

DeFi

This abbreviation stands for Decentralised Financing, which basically means that there are no middlemen in your process of exchanging NFT tokens so that artists and other users would be the only ones deciding on the cost and any other conditions of a deal.

 

However, DeFi is not only about exchanging your NFT tokens. It also allows users to gain interest from their digital assets and the staking of them, build a whole community that would contribute its tokens to the farms and their pools, borrow money, or lend them if that is what the user needs.

 

DeFi has created a whole new financial world for us: the general difference between DeFi and banks is that there are no middlemen, i.e., no banks, and no need to give them out rewards.

 

And now, more and more people, as well as blockchain technologies, go into DeFi. It all started with Ethereum, but now, Polygon and Binance Smart Chain are also supporting DeFi.

 

As DeFi is quite a new concept in our digital world, no one blames you for being too skeptical about them or worrying about possible risks: it happens with everything new in our life.

 

However, let us compare the offers that banks and DeFi are providing us with: in the current USA, banks are offering a really small, such as 0.01, the interest rate for your investments into it, and even negative ones, where you actually need to pay the bank so that they would continue to keep your savings, can be found.

 

With DeFi, the most general offer that users will get is a four percent interest rate. Guite a difference, huh?

 

If we got you interested, you could check out the following DeFi platforms:

 

  • UniSwap
  • ApeSwap
  • SushiSwap
  • QuickSwap
  • PancakeSwap

However, be careful exploring them, as they might have completely different blockchain technology, with PancakeSwap and ApeSwap using Binance Swap Chain, UniSwap, and Sushi Swap - Ethereum, and QuickSwap - Polygon. Moreover, they can have their own farm tokens!

 

More on how NFT Farming Works

As we already discussed above, any NFTs are placed on a particular NFT platform that has a certain cryptocurrency, such as Ethereum, Polygon, or Binance Smart Chain.

 

But it is not like every platform has its own and unique cryptocurrency, no. Most of the marketplaces have the same cryptocurrency, with Ethereum one being the most popular. This simply means that the NFT token has a compatibility function: an ability to connect with other systems and platforms, or, more particular to our case, a possibility for one's digital assets to connect with a certain smart contract and various marketplaces in order to gain additional rewards.

 

For you to be able to try yourself out in NFT farming, you would first need to create a digital wallet that will support the type of cryptocurrency that your NFT marketplace is asking for. We would recommend you to choose the MetaMask wallet: it is able to support Polygon, Binance Smart Chain, and Ethereum blockchain technologies. Moreover, this wallet has both a browser extension and its own app.

 

What you would need to do next is to make a certain farm token for staking it on the platform of your choice. After that, stake tokens that you have made in an NFT farm total pool. As a result, you will gain a certain amount of rewards that will depend on your proportion in the pool.

 

If, for some reason, you do not want to use MetaMask wallet, here are two additional crypto wallets that we would recommend you to use:

 

  • Coinbase Wallet
  • Rainbow Wallet

 

The most general picture that we can see happening within NFT farming is using farm staking portals - places where users can stake together many compatible NFTs in order to sell the gained collection later.

 

One of the best platforms for creating an NFT farm is called $MEME Genesis NFT Farm: what it allows its users to do is to create absolutely free MEME tokens that can be collected together to make a unique pack.

After that, you can use such a farm collection to stake it, sell it, and gain rewards on other NFT platforms, such as Rarible or OpenSea, which we already mentioned before.

 

NFT Farming and Gaming Industry

Gamification has become quite a trend in the current NFT farming world so that video games content gets added to an already existing yield farming or NFT farming processes.

 

What do we mean by that? Well, now video games use different NFT farm tokens within their gaming process so that users could buy them and even later stake on some NFT market with the help of NFT farming or yield farming. Moreover, players can use the farm tokens that they have bought to create new ones!

 

This is what had been recently done within the Axie Infinity game: these farm tokens are called Axies, and they can be used in the game battle, as well as for creating more of the Smooth Love Portions that are considered to be farm tokens of real value.

 

What else? Gamification Axies can create more of Axies, and their token holders can actually stake them and gain rewards.

 

Before the NFT farms appeared and became quite widespread, game developers only let the users of their game hold the items inside the game, which meant that only the creators of the game had rights to that digital assets. With NFTs and gamification that has appeared now, everything turned to users.

 

Binance Smart Chain blockchain seems to have the most power within NFT farming, as well as yield farming: we have noticed that quite a lot of yield farming platforms with the possibility of using NFT farming tokens in them are being created.

 

In addition, a new way of combining NFT farms and DeFi services has been developed exactly on this blockchain technology: it requires the yield farming users to first buy an NFT token of a certain value so that they would be able to start its farming. What this method does is create a possibility of a so-called boost for the yield farming users before they go into staking their money and NFTs.

 

Great DeFi Gaming Platforms for you to Check

Even with our explanations, you still might not be able to understand what NFT farming means and how it can be related to games.

 

In order for you to finally gain that knowledge, we will further describe a few of the DeFi platforms that support yield farming as well as NFT farming so that you can go there and see everything for yourself!

 

Bunicorn.Finance

This is a wonderful NFT farming platform that allows you to create an NFT farm. It differs from others in the way that it is mainly focused on NFT gamification, while other more traditional NFT token platforms simply post music, game items, and art.

 

Bunicorn has a bit different system of distributing the rewards from the NFT farm to its token holders: in comparison with other DeFi related NFT platforms where the reward from the NFT farm collectibles is given out simultaneously, Bunicorn farm NFTs act like actual bonds because the platform does not let the token holders that are in the NFT farming collectibles staking their farm token immediately after they have bought it, no.

 

What Bunicorn does is create certain vesting periods within which the NFTs of the farm cannot be turned into BUNI tokens, but after this time, they can.

 

However, this does not stop the NFT farming holders from staking their farm NFT tokens on other marketplaces, selling them and gaining rewards, or exchanging for others.  Cannot wait for the vesting period to be over? Then simply sell your NFTs at a discount.

 

More on Their Gamification

 

Bunicorn.Finance will soon launch its own game called Battle to Redeem Buniland's Peace that will be directly related to NFT farming and farm tokens. In this game, the users will participate so that they can target and receive BUNI tokens by using their Bunicorns.

 

It is a game placed on the Binance Smart Chain technology that develops together with its players so that they can open new locations and earn more of the farm tokens. Staking them would also be possible.

 

Mobox

Some of the yield farming platforms are based only on the cryptocurrency, some on the unique NFTs, and others - on the NFT games. With Mobox platforms, you will have an unusual experience of all of the three components existing in the same digital world - NFTs, DeFi, and gaming.

 

This Binance Smart Chain-based marketplace can be quite hard to grasp on the first try, so now we will try to explain to you in detail exactly how it works.

 

  • The first step that you should do when entering the Mobox platform is staking some of their stablecoins or LP farm tokens, and do that with the help of a yield farming smart contract so that automatic procedures could take place later when you contribute to some pool.
  • At this stage, the things you did before allow you to gain a specific "key" that would let you access and unlock some "chest" where farm NFTs are stored.
  • The general rule after that is to try to look for more unique NFTs and target them, as they tend to gain bigger rewards.
  • And now, when you have gotten your access to some NFTs, interesting things start to happen: as we described before, Mobox lets you choose what you would want to do with your NFTs later.
  • You can either trade them with the help of Mobox NFT exchange for another NFT,
  • Stake your farm NFTs and earn from that,
  • Or, with the help of your NFTs, play in a certain Mobox game and earn something in return there.

 

And as we see a widespread trend of making yield farming more gamified, Mobox also will launch three of its farm games in 2021 with staking opportunities as well.

 

Zookeeper

Zookeeper is another gamified creation of the NFT world that helps people to make their farming process more fun.

 

One of the main perks of this platform is that it allows you to farm two types of farm tokens at the same time: as it is based on the Wanchain, you can farm WASP tokens as well as the ZOO ones. This opportunity lets you gain more rewards simultaneously.

 

In addition, Zookeeper has quite a gamified process of working with it. In accordance with its name, the platform has its own zoo that contains liquidity pools that correspond to particular animal mascots of theirs, and all of the farm pools are capable of working with both types of tokens.

 

If you wish to use both of the tokens at the same time so that you would be able to gain more rewards at once, you would be obliged to have Wanswap Liquidity Provider tokens or WSLP. Once this is done, you can then use both of your tokens to choose a farming pair that you would like. In addition, you can have a locking period for that pair, but note that the maximum time period for that is 180 days.

 

But this is not the only option of yours, and two more are available in the Zookeeper:

 

  • Zookeeper has so-called "expeditions" through which you can go in order to gain access to gold chests. In order for you to do that, you need to stake your Zoo tokens at first, and when you finish your expedition and reach the destination with a gold chest, your tokens will be returned to you. The amount that you need to stake would differ depending on the cost of the gold chest at that time.
  • For those that do not have time for expeditions and want to get the result straight away, they can access and unlock a chest straight away by using their tokens to buy them. There are two types of chests available at Zookeeper: gold and silver ones. The NFT token booster is present only in gold chests when the silver booster has only a ten percent chance of acquiring an NFT. Also, note that when the transaction is over, your tokens will burn simultaneously.

 

Pulsar Farm

Pulsar Farm is a game created with the help of Binance Smart Chain and Polygon technologies, and it uses yield farming gamification together with NFTs.

 

How Does it Work?

 

The game has a Pulse arena at which you can buy a digital pet that is used in Player versus Player games. As in most games, the character and possibilities of your pet will grow together with your achievements in the game. And the bigger is your winning streak, and the bigger is your reward.

 

But before you can buy pets and participate in the Player versus Player game, you need to also play in Player versus Environment mode so that you can earn BPUL tokens that later would be used to buy a pet.

In addition, Pulsar Farm has its own leader boards, and when you reach it, you gain additional BNT tokens.

 

As you could have understood, the pet that you buy is an NFT token, and without it, the game would not work, which is why we call Pulsar Farm a gamified version of yield farming.

 

The game works in a way that burns all the information about the procedures that were made for you to sell the NFTs, which is why they cannot bring any rewards to the game. This feature also was made in order to protect your personal information and escape any possible reports of hacker activities.

 

However, there is one limit of this game that some of you might not like: when entering the Player versus Player mode, you have to pay an entrance fee that would be used for future rewards of the users: so when you win, you get 50 percent of the entrance fee that you paid, as well as the full amount of your opponent's fee.

 

Possible Downsides of NFT Farming

Like with any other thing in our life, NFT farming also has its own disadvantages.

 

For example, it has a composability feature that can be thought of as one of the great benefits, but also quite a big possible downside: NFT marketplaces have a block-structure, which means that when one of them would break down, there is a high risk that others will do the same.

Another important thing to notice is that a smart contract does not always work as it should have, and as we are talking about the digital world, no one will save you from possible bugs that might appear.

 

However, we all should remember that NFTs started to develop only a few years ago, so with the interest that people have in them, it definitely will get better and widen the number of its benefits. Until then, some patience is required from us as a community interested in what would happen next.

 

Frequently Asked Questions

 

What is NFT Farming?

Generally speaking, NFT farming is a new way of acquiring a reward in the digital world: what they let you do is exchange something for an NFT or a staked token, and vice versa.

 

The most common way of using NFT farming now is connected with games: nowadays, many of them have NFT tokens inside that users can buy and later sell or use to create more of the same tokens, which also strengthens the gaming community.

 

In addition, as NFT farming is created together with Decentralized Finance technologies, or DeFi, you can create free NFT collections on particular platforms so that you can later sell the collection on the NFT market, getting rewards. This feature helps the NFT to raise its liquidity.

 

What Does NFT Mean?

NFTs stands for Non-Fungible Tokens: it is a digital piece of art that is sold on particular NFT platforms. NFTs are one-of-a-kind creations, which means that there is no copy of them existing in the world.

 

What they create for authors and their future holders is something of a digital certificate proving who the creator, who bought it, and the cost of the transaction is. This certificate exists only in one copy, which means that it helps its holders to prove the ownership, as well as use the NFT token for further sales.

 

Without this certificate, you cannot do anything that we have talked about above. Otherwise, it would be plagiarism and illegal, and a smart contract of that NFT token would prove that.

 

Is SuperFarm an NFT?

The SuperFarm community is not exactly an NFT but an NFT platform that people can use for creating NFT farms and NFT tokens in general.

 

The focus of the SuperFarm NFT marketplace is mainly on NFT farming and video games that are connected with them: SuperFarm allows you to create your own NFT farms, and for the investors that are staking their crypto into your project - to get exclusive NFT content.

 

With the SuperFarm NFT farming platform, no coding knowledge is required. You also can contribute to the ecosystem of your projects by adding more gamification features, and there is no limit to your imagination.

 

Are NFTs Minted?

If you want to publish your digital work, you need to make an NFT token out of it, which means that minting is necessary.

 

For you to be able to mint your NFT token, you need to:

 

  • Make an account at some NFT platform,
  • Click the creation button there and fill out anything about your NFTs and the types you would want to create in the future,
  • And connect your account with your digital wallet so that all of the NFTs stored there would be able to automatically go to the new holders when you would sell them, as well as bring back the profit. Making a smart contract would also be a great idea if you would want to receive rewards for secondary sales of your NFTs, as well as protect your ownership rights.

 

Without the minting process, you would not have an opportunity to stake and sell your works in NFT platforms, as well as create smart contracts about them in any of the blockchain technologies that would prove that this is the original NFT.

 

How Does NFT Farming Work?

As with any other NFTs, you would need to create an account at any NFT platform of your choice, as well as the digital wallet with the cryptocurrency that the platform asks for.

 

What differs with NFT farms is the staking of your token on a platform: you should stake it in a certain pool, not simply post it on the marketplace. What you will gain later is the rewards, the amount of which would correspond with your proportion in the total pool.

 

In addition, separate staking portals were created, in which you could create a common pool for free so that later you would sell the collection on the usual NFT platform.

 

This way of NFT working helps to create a strong community of eager and creative people, as well as raise the liquidity of tokens.

 

After Bitcoin's All-Time High, What's Next?

Well, we do not believe that Bitcoins will go anywhere for a very long time, as their technology has helped to break new ice in the IT sphere. Without cryptocurrency's appearance, we would not have any NFTs.

 

So yeah, Bitcoins will stay where they are, but we believe that this is only the start. With new cryptocurrencies and blockchain technologies developing, the NFT market will only expand and increase its liquidity, and the appearance of NFT farming, smart contracts, and gamification of the NFT process only proves that.

 

What we definitely expect is some progress in relation to becoming more of an ecosystem platform to buy and sell art, and we, as a community interested in NFTs, should help with that in any way possible.

 

Is it Safe to Invest in NFTs?

In general, it is not safe to invest in anything, as there are basically no promises for you, only logical considerations, your predictions, and market movements.

 

But we would definitely say that NFTs will not go anywhere, and as they continue to show a great amount of trust by different artists, popular and newcomers as well, that make millions of dollars from single sales, it is a new area that you might want to research and invest in.

 

Every big company that we know now has started as something new and unusual, but now they make a huge amount of money daily, so who knows? Different reports and news show us that NFTs have a high probability of expanding in the same way.

Top articles
28.09.2021 13 1716
MetaNFT prestige
03.11.2021 10 1684
Crypto collectibles
16.10.2021 19 1654
How to create NFT art