What is BBP on the example of Nominex
05 October 2021 - 5:36AM
NEWSBTC
After reading this article, you will find out how you can trade on
the world’s most popular Binance exchange without any commissions
at all and at the same time have additional passive income. This is
exclusive but rather intricate information, so please be patient
and let’s dive deeper. The platform we will talk about is Nominex.
Previously, it was just a centralized exchange, but now it is a
whole ecosystem that has already brought several unique products to
the market, including ones in the currently popular DeFi direction.
What is Farming in a nutshell For an average person, DeFi farming
is quite a difficult notion to understand. But in this article, we
will crack this nut effortlessly. There are decentralized exchanges
like Uniswap or PancakeSwap. They work entirely on smart contracts.
And to change one coin for another in these exchanges, you need the
smart contract to store a sufficient number of both coins. This
storage of two coins for a trading pair in a smart contract is
called a liquidity pool. And the more coins are injected into this
liquidity pool, the more favorable prices you can sell or buy coins
through this liquidity pool. In fact, a pool of liquidity in
decentralized exchanges is a DOM (Depth Of Market) in centralized
exchanges. Farming Steps Let’s look at the steps using the NMX-USDT
liquidity pool as an example. First off, equal proportions of NMX
and USDT coins are sent to the liquidity pool. In return, the
liquidity pool sends you special liquidity pool tokens (LP tokens).
This is a kind of deposit agreement, which will, later on, allow
you to send the tokens of the liquidity pool back to the liquidity
pool so that it returns the funds invested back to you. Next, you
send the received LP tokens to another smart contract, which
distributes NMX tokens in accordance to your share of LP tokens in
the pool, which is essentially called farming. This reward in the
form of NMX tokens is the motivation to fund the pool with
liquidity so that other people can trade at better prices. How is
farming related to DeFi (decentralized finance) technology?
Everything here is based on smart contracts. No one controls either
the liquidity pool or the process of distributing tokens through
farming. So, the funds that you send to the liquidity pool are not
sent to the Nominex exchange and not to the wallets that it
controls, but to a smart contract that has been audited for
security by Alexey Makeev, unhash.io representative. From this
smart contract you can successfully withdraw your funds back at any
time. Concerning token allocation The process of farming will last
for 72 years with healthy, deflationary tokenomics on the Binance
Smart Chain blockchain, which ensures faster transaction speed and
the lowest fees on the market. During this time, 200 million NMX
tokens will be distributed NMX is a BEP-20 token. The current price
of NMX token is 24$ The liquidity pool is hosted on the
well-established decentralized exchange PancakeSwap. Obviously, the
pair of NMX and USDT tokens required for the liquidity pool must be
in BEP-20 format. The annual profitability for farming in NMX
tokens is currently about 190% per annum with weekly reinvestment.
The yield is calculated as the dollar equivalent of the farmed NMX
tokens for the year in relation to the funds invested into the
liquidity pool. But at any time a user can withdraw both the farmed
tokens and the total amount of invested funds from the liquidity
pool. There is only one risk and that is if the price of the NMX
token begins to fall, as in general, in any other coin. Then a user
might run into impermanent loss. But let’s look at the price chart
of the NMX token The token was launched on February 25, 2021 and
since then has shown tremendous resilience over time, unlike most
other launched projects. While the entire crypto market underwent a
correction, the NMX token was doing great however with time its
price went down due to reduced funds in the liquidity pools. The
secret of this result lies precisely in the utility of the farming
process, which we will now consider. Nominex is the first
centralized exchange to integrate DeFi into a centralized product
in such an elegant and efficient way. The idea is as follows:
Depending on the amount of funds that you put in the liquidity pool
for farming, Nominex credits you with a certain level inside the
Nominex The higher your level, the more discounts on trading
commissions within the exchange and the higher the affiliate
program rewards. For instance, if you put 10K dollars into farming,
then you are assigned a maximum level that allows you to trade with
zero commissions, that is, completely free. Moreover, the maximum
level allows you to receive up to 40% every day from the farmed NMX
tokens by your referrals through the affiliate program. This is
another unique feature called Team Farming which is implemented in
Nominex and nowhere else Nominex Levels At MAX level, the exchange
allows you to trade completely without commissions and allows you
to receive the highest rewards under the referral program from all
people in the partner team, both for farming and for trading.
Affiliate program Next, let’s focus on the affiliate program
because the model of this affiliate program is unique for both
farming and the exchange. If a user constantly shares the referral
link to his friends, in the nearest future he will be surprised by
the increase in the size of the team. The farming rewards will be
received from people a user doesn’t even know about. Thanks to the
binary model, not only those who have registered using the referral
link, but also all the people down the chain fall into the team.
And as mentioned before bonuses are received from all of them. The
essence of a binary affiliate program is that a user earns from the
weak team. If you see that your strong team is already powerful,
then your task is to develop the weak one. To do that, just flip
the switch in the “my referral tree” tab so that all subsequent
direct referrals go to the weak team. Let’s briefly repeat how to
make money on the affiliate program: Up to 20% of all tokens farmed
by your direct referrals at the maximum level. Even if you have
nothing on a weak team at all. 20% from all farmed tokens in total
by all people from a weak team. In addition, don’t forget about
200% per annum from regular personal farming, where you don’t need
to invite anyone to register using your referral link. Moreover,
Nominex figured out how to motivate people to farm for as long as
possible – the profitability from farming over time can be
increased up to 10 times. At first glance, the affiliate program
with an infinite number of levels looks a lot like a pyramid
scheme. But in reality, NMX tokens are distributed on the market
through farming mechanics according to a strict schedule. When only
a fixed number of tokens, prescribed in the smart contract
algorithm, can be released on the market every day. This is
achieved through the principle of proportionality of the
distribution of tokens among all participants under the affiliate
program. Taking into account the growth in the number of farming
participants and Nominex users, there is an increasing demand for
NMX tokens with a fixed supply. According to the laws of economics,
that usually leads to an increase in the price of an asset. The
weekly pools are growing and will continue to grow during the first
year. They will continue to grow until a decline that will continue
for 70 years. This essentially imitates the process of Bitcoin
halving. Distribution follows a strict schedule. And now the daily
pool is already 11 000 NMX tokens. During the first 15 months, the
weekly pool will gradually increase by 4% every week. Farming will
reach 17 000 NMX per day in 15 months. In other words, this is the
phase of growth in the number of farming participants, for which a
sufficient supply of tokens is needed. For the next 70 years, the
pool will decrease weekly. In other words, this phase slows
down the release of tokens, while forming a deficit. The
distribution system is designed for 72 years. Surely, it’s too
early to look that far. In the future a large community may be
formed – the referral tree, in which, due to the spillover
effect, a user will receive most of his referral bonuses from users
he does not even know personally. The best for the last Nominex
users will be able to trade on Binance for free. The thing is that
Nominex is preparing to become a Binance broker right now – this
functionality is already developed In fact, you will be able to
trade on Nominex with all the trading pairs available on Binance.
All Binance liquidity will be available on Nominex. The users’
funds will also be stored in Binance wallets. Thus, Nominex will
get rid of its main drawback – a small number of coins, trading
pairs and low liquidity. At the same, the conditions of free
trading for MAX partnership level owners and discounts for other
levels will also persevere. All of the above will make the trading
process on Nominex as profitable and safe as possible.
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