Illiquidity has been a problem plaguing blockchain since the technology was first created by Satoshi Nakamoto in 2008. This illiquidity is inherently risky for individual blockchain projects as well as the overall industry for a variety of reasons.
The recent invention of liquidity mining has revolutionized the DeFi space. Liquidity mining incentivizes users to create token markets, which has been a historic difficulty within the industry. This process operates along the premise that, if there are enough liquidity pools being created by users, then there is a large enough market for a particular token, providing it with consistent liquidity over time.
Liquidity Mining is Valuable, Yet Limited
While liquidity mining is extremely beneficial to token holders and token projects alike, the process is not without limitations.
As it presently exists, the liquidity mining process is cumbersome, and requires users to deposit or lend specific token assets within a liquidity pool on a mining protocol to provide liquidity for the product’s fund pool and thus obtain a reward in a specific project’s native token, or the governance rights it represents.
There are many steps involved here. For example, liquidity mining on the Curve protocol alone requires that the user deposits collateral into any of Curve’s 7 liquidity pools, use the Ren Protocol to bring BTC to Ethereum if they are participating in a Bitcoin pool, stake the received liquidity token via a Curve gauge, claim CRV and lock it via the Curve DAO for a liquidity multiplier, and be on the lookout for added incentives like SNX and REN for the sUSD and sBTC pool.
Furthermore, liquidity mining rewards are not consistent. An additional shortcoming of this space is that liquidity mining and the larger DeFi industry has seen a recent shift away from decentralization, a marked change from the foundational values of blockchain.
Resultantly, many users become bored or discouraged by the liquidity mining process. This poses a limit to the scalability of not only liquidity mining projects, but also the DeFi and blockchain industries overall.
A New Take – Adding Non-Fungible Tokens and Gaming
AnRKey X™ is a new platform that strives to resolve these limitations in liquidity mining with a novel methodology: gamification and non-fungible tokens. Inspired by AnRKey X™ CEO J.D. Salbego’s love for art and technology, the platform is the first of its kind.
Non-fungible tokens (NFTs) are tokens that are not backed by a particular asset pool. Instead, these tokens represent something else such as an art piece, an event, or a virtual item in a digital world. Furthermore, NFTs are unique, rare, and indivisible. Because of these properties, the gaming industry has been quick to adopt these tokens as representations of virtual items or achievements. However, real-word use cases for NFTS are limited outside of the games they exist in.
By combining liquidity mining with eSport team-based gaming and NFTs, AnRKey X™ creates something entirely new. The result is a fusion of many industries: decentralized finance, Web 3.0, social media, human digital interactions, and tokenization.
With their suite of m$ports™ game products, AnRKey X™ effectively gamifies liquidity mining. This brand new industry they have created calling it m$ports™ (Money Sports), is the innovative merger of these 3 worlds — DeFi, eSports, and Web 3.0 NFTs.
Striving for Scalability through Enjoyability
AnRKey X™ seeks to make liquidity mining fun and thus more scalable via their suite of m$ports™ game products. They begin this endeavor with the launch of their first game, Battle Wave 2323™, which has its users face off in competing “Armies” as they fight to produce the highest yield from liquidity mining pools. AnRKey X™ adds to this gaming experience with the addition of various yield boosts and rewards.
AnRKey X™ thus turns the previously complex and technical interface of the liquidity mining process into a game merging LP token staking, yield boosting, and rewards all into one seamless platform powered by their proprietary Derived Base-Value NFTs. In this manner, AnRKey X™ makes it both fun and extremely easy for users to participate in this otherwise arduous procedure.
Through this gamification, AnRKey X™ brings an opportunity for DeFi and liquidity farming/pooling to achieve mainstream adoption, providing these industries with a real use case and renewed hopes for longevity, scalability and sustainability.
Disclaimer: The writer is an advisor to AnRKey X™ and used his role to access information for this article. The Daily Chain encourages you to carry out your own research before you make any form of investment and educate yourself about how to stay safe in the crypto space.