Volcano, a yield farming program is soon pre-launching with Dutch auction for a limited period. The yield farming program is for the KTY tokens. These tokens are part of the Cryptokitties NFT MMO game, popularly known as KittieFIGHT.
The yield farming Program will serve as a program offering incentives for providing liquidity. It will kick-off before the dutch auction concludes. The volcano yield farming Program will allow earning 500%-6000% more KTY and DAO governance tokens.
The Dutch Auction
The initial distribution of the KTY tokens will begin with the KTY dutch auction. In the Dutch auction, the process of setting the prices of KTY will be a democratic one. It means that the power to set the prices of the KTY tokens will be in the hands of the users. They would be able to send Ether bids throughout the 4 weeks of the dutch auction bidding process.
So, what’s the meaning of dutch auction? A dutch auction is an auctioning process under which a batch of tokens is sold to the public and under this process, the price of the tokens is decided by the buyers.
The KittieFIGHTs’ aim behind opting for the dutch auction is that it makes the auctioning process fair. The dutch auction process makes sure that everyone who wants the tokens has a fair chance of getting them. The token buyers are also more likely to be happy with the price as the price is decided by the buyers themselves.
The users would be able to provide liquidity in KTY, yCRV, yDAI, yaLink, yETH, WETH, ANT, aYfi, GNO, 2key, aLend, and aSNX on Uniswap. This way they would be tapping into the governance power worth more than $1.7 billion. There won’t be any risk of impermanent loss. In return, the users stand a chance to receive more SDAO and KTY tokens which can be as high as 500% to 6000% of the liquidity they provided.
What’s the use of KTY Tokens?
The token holders would be able to use the KTY tokens as utility fee payments in the KittieFIGHT MMO game. KittieFIGHT is a CryptoKitties lending-backed combat game. There’s no need for the players to acquire the KTY tokens directly in the game.
In terms of comparison, the KittieFIGHT platform gaming system is similar to a high yield casino game that is bankrolled by a lender-funded open-source bank. It is because the bank receives a weekly yield from the game. This weekly yield would be available to lenders – They can withdraw it in a ratio proportionate to the capital they committed initially.
KittieFIGHT’s Game Mechanics is Equal to the fan Support in a Boxing Match
The users will find lots of similarities between the game mechanics of the KittieFIGHT game and a boxing match’s fan support. Well, why is it so? It is because the players at two competing groups bet Ether on Cryptokitties’ NFTs who are fighting against each other. The style of fight is similar to that of the mortal kombat style.
The frequency and style of the player are an important part of the fight between the Kittie NFTs. It is because the fight between Kittie NFT’s is triggered based on the players’ betting style and frequency. There’s another incentive for the players here – A Sizable Ether Jackpot! It must swell up to 10 times its initial size at the very minimum. Thus, the players and the original lenders can get lucrative winning from the battle. This incentive attracts the opposite player groups to battle against each other.
The Jackpot allotment must grow to 10X its initial value for the game to end. As per the system architect and founder of KittieFIGHT, Oladapo Ajayi, both the game and its protocol are ready for the mainnet. They are currently waiting only for the smart contract audits to be completed.
The Yield Farming Program
The KittieFIGHT’ Volcano program is a yield farming program that is also launching along with the dutch auction. It is KittieFIGHT’s token incentive program. The KTY tokens would be available for a limited time through dutch auction and the Volcano program is also pre-launching then.
Under the yield farming program, the users can earn more KTY and SDAO tokens if they will provide more liquidity for a period of 6 months or more. A total of 7 million KTY tokens and 7 million of SDAO token supply have been set aside for the 6-month program. 10% of these allocated tokens will be rewarded automatically to the yield farmers who will participate within the seven days after the launch of the volcano program.
There is no restrictions to field farmers unstaking uniswap Lp tokens collateral. Yield farmers will have to keep their LP tokens collateral staked for a minimum of one month to become eligible for withdrawing yield. Under the volcano program, the allocated 7 million KTY tokens and 7 million SDAO tokens will keep unlocking gradually every month. It means that the yield farmers will keep receiving their share of SDAO and the KTY tokens over 6 months.