Lightening Cash — The Incentive Mechanism
Lightening Cash is more than a privacy protection asset transfer protocol. It has developed some incredible new token incentives to maximize the benefits for LIC Holders, Farmers and Stakers. I will present an overview in this article.
Linghtening Cash App Allows users to spend a small fee to send BNB or any BEP20 token to any address in a way that obscures your sending address. It has two user flows:
- Deposit: Users can deposit BNB or any BEP20 token to the privacy box and then easily generate a secret deposit note that allows you to use said deposit without revealing your original address. The user needs to protect the secret note in order to redeem the deposit later. A small fee 0.05% of the deposit amount is applied to the deposit transaction and the fee is sent to the protocol treasury.
- Withdraw: Withdraw allows any user with an Unspent/unredeemed secret note to open the generated deposit commitment and withdraw the deposited BNB/BEP20 token. A small 0.1% fee of the withdrawal amount is applied to the withdrawal. The fee is sent to the treasury protocol.
Multi-yield Farming and Staking
Farming has become a Standard in DeFi where most (if not all) farming systems receive system tokens as reward for providing liquidity. In most of those farming systems, the reward is generated through high inflation.
On the other hand, a farming system with low APY doesn’t attract farmers & users. There are still pros and cons on both mentioned systems above.
Lightening Cash suggests an innovative farming system focused on sustainable long-term growth, but it also attains high APY through three yields:
- Low inflation from LIC Farming reserve (3 LIC per block, 3s/block, over 6 months): Low inflation provides long-term sustainability for the Token price, thus giving incentives to token holders to provide liquidity and stake to support the system.
- Transaction fee rewards: Every transaction has 1% transaction fee (Sellers) or less. This transaction fee will be used for rewarding all farmers and stakers, thus increasing APY to attract investors.
- Buy back: The fees collected in the treasury are used to buy-back LIC tokens from AMM, thus increasing token price to incentivize holding of the token. Furthermore, the token obtained by the buy-back is used for rewarding farmers and stakers, thus pushing APY to further support them.
Farming & Staking LIC
Farmers & Stakers recieve rewards by staking LIC tokens or the pancake liquidity provider token in the farming pools. To support long-term holders, rewards are calculated based on:
- How much LIC tokens users stake or farm
- How long users choose to lock liquidity or stake
The longer the locked time is, the more reward a user receives compared to the user who chooses to lock liquidity or stake for a shorter period.
Furthermore, 75% of farming/staking rewards will be locked while the remaining 25% will be released immediately when users harvest. The locked rewards will be released linearly over 3 months when farming finishes. Locking rewards helps reduce selling pressure, thus giving more incentive for users to hold tokens and farm.
Another problem is impermanent loss when you provide liquidity on AMM. We will provide our solution to this issue.
Now, are you ready to get more $LIC by Farming and staking?
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