APY Boosts

NFT Rewards Boost

The distribution of Emission Rewards is determined primarily by each user’s relative proportion of total lending and borrowing value. Amounts are then adjusted by the MNT Rewards Boost, which is a fixed percentage increase in Emission Rewards provided to users who hold Minterest NFTs that confer specific protocol benefits to these users.
NFTs are issued by Minterest in limited quantities with various tiered levels of Rewards Boost and duration, as each NFT carries a set percentage increase in token emission valid for a specified period of time. After the expiration date, the reward boost for the NFT no longer applies. When an NFT is held in the same wallet used by the user of the Minterest protocol, the protocol assigns that user the benefits attributed to the NFT, and the user’s Emission Rewards are therefore increased by the appropriate percentage. The percentage of total emission allocated to the Rewards Boost will be determined by governance but is proposed to be a maximum of 33% of total Emission Rewards.
Minterest NFTs bestow the following benefits upon their holders:
  • MNT Emission Boost. Users holding an NFT and who engage in lending and borrowing, may earn up to a 50% Emission Boost in their MNT Emission Rewards. Emission Rewards start at the date of the protocol’s public launch and are earned until their NFT’s functionality expires, which itself is pre-determined by the rarity level of the NFT. A rarity of level 1 enables the highest Emission Boost along with the longest tenure compared to level 12 providing the lowest Emission Boost and shortest tenure. The Emission Boost feature will be activated during Minterest’s Public Launch.
  • Access to Private Launch Liquidity Mining. The Minterest protocol will launch over 2 stages.
  • Private Launch: The first stage is Minterest’s Private Launch during which access will be limited to only holders of Minterest NFTs. During this period, Minterest NFTs will function much like VIP access cards to the protocol, allowing for early access to the protocol and liquidity mining of the MNT token. The Private Launch enables the protocol to undertake all of its functions, including its Buy Back process, inside a controlled user environment prior to allowing access to the wider public. For this reason the intended period of the Private Launch will not be less than one calendar month, with advanced notice of the intended period being announced prior.
The Private Launch phase of the protocol is potentially valuable for NFT holders given Emission Rewards will be distributed amongst a restricted group of users, with total liquidity capped by the sum supplied by these users. It can be assumed, all things being equal, individual Private Launch users will be the beneficiaries of substantially more tokens emitted by the protocol than otherwise, i.e. following the Public Launch.
  • Public Launch: The second stage is MInterest’s Public Launch following the Private Launch. At this stage, the protocol opens up to allow access to all users. In this phase, the NFT Emission Boost will be activated for all Minterest NFT holders as described above.
  • Tradeability. NFTs by their nature are tradeable, as are Minterest’s. NFT recipients who participated in Minterest’s Next Level token event, but who do not provide liquidity to the protocol, may seek to trade their NFT via various NFT marketplaces to liquidity providers for whom the benefits ascribed to the NFT are valuable.
In addition to total APY from the protocol’s use, the value of any NFT to another liquidity provider will also depend on the intended value and term of their liquidity supply. This means liquidity providers intending to provide significant liquidity to the protocol for longer periods of time will benefit more from the Emission Boost offered by the NFTs, especially for higher level NFTs with greater boosts and longer terms.

Minterest APY Boost NFT Levels & Functionalities

The Minterest APY boost NFTs have different functionalities based on their levels. The NFTs will, depending on their level, offer an increase in APY that ranges from 20% to 50%. Additionally, the level of the NFT will decide the validity of the APY boost, which ranges from 3 to 36 months.
There is a total of 12 levels of Minterest APY boost NFTs: