Nodes
The aim of nodes is to create a strong incentive for long term holding of UNICORN and several other coins through the use of a locked staked high earning pool. The pool requires users to spend 50 UNICORN to create a node that in turn delivers daily UNICORN rewards back to the user at an estimated initial starting rate of 1.5-3% daily delivering passive yield in a token pegged to a stablecoin. This will reward long term holders with a higher yield than the single stake UNICORN pool and in turn lock up a portion of the UNICORN supply helping to reduce market sell pressure on UNICORN.
UNICORN Node details
50 UNICORN cost per node
Unlimited nodes per account
Up to 3% daily UNICORN rewards paid (tapering figure), returns are based on node pool balance and are not guaranteed
Up to a max 500% ROI on each node (adjustable figure), max possible ROI is based on node pool balance and is not possible to guarantee
Each week the account that created the most nodes wins 5 WINGS
Each node created weekly also gives you 1 entry to a weekly 5 WINGS prize sent to a random account, more entries more chance to win
10% of the node pool will be distributed to NFT holders monthly (Including future node pools) Read more about this here
Disclaimer & Risks
Note that investing in DeFi is experimental and risky, there is no guaranteed return on any product or investment. By using Fairy Finance, you agree that the Fairy Finance team is not responsible for any financial losses from investing in Fairy Finance nor do we promise any returns now or in the future. Nodes are highly experimental locked staking pools and the total amount of rewards that can be paid are determined by a number of factors including the number of nodes created, the TWAP expansion rates of the protocol and the performance of investments made by the treasury.
What is a node?
Users may be familiar with the concept of validator nodes which as the name suggest validate transactions on a blockchain, in most blockchain networks these validators are rewarded for their efforts with native tokens. Fairy Nodes are not transaction validator nodes however they follow this concept of rewarding locked stakers with UNICORN rewards for their efforts.
Users deposit UNICORN to purchase a node which in turn deposits a portion of that into a reward pool that drips daily rewards back to all node holders thereby granting a passive income in return for locking up your UNICORN. The remaining UNICORN is sent to the treasury and used to increase protocol sustainability through several mechanisms depending on TWAP including adding to the UNICORN-WCRO LP and/or investing in other protocols to generate a non protocol specific income that can be used to directly support the system.
Sustainability
Nodes often suffer from sustainability issues due to their tokens having no other purpose than simply as a reward token for selling, this too is an issue for algorithmic stable coin protocols. At Fairy Finance adding strong utility to UNICORN is something we have focused on so far through unique yielding opportunities with partner protocols. In order to ensure our UNICORN nodes are sustainable and achieve their intended outcome we take inspiration from EMP Money's successful implementation.
Education
Much like in our base layer seigniorage protocol education and strategy play a large part in ensuring sustainability of the system. If the majority of participants operate in unison and follow the same strategy the system has a better chance at maintaining sustainability over the long run, essentially making the system a social experiment in game theory. We have produced a detailed strategy flowchart for users to follow based on the TWAP of the original peg token below and often remind participants of the current optimal strategy to follow for protocol health which in turn helps protect the longevity of your investment.
ROI Caps & reward rates
This includes implementing mechanisms such as a maximum cap on total ROI that is possible to receive from a single node (currently 500%) and tweaking of the daily drip rate to maintain a sweet spot of up to 3% so it remains above that available for single staking UNICORN but not such that it reduces the benefit locked staking will have for the protocol. There is no limit to the number of nodes someone can own however the more you own the greater your daily yield back in UNICORN. Please note that this maximum cap is not your guaranteed return from each node it is your maximum possible return from each node, it is not possible to guarantee a return in DeFi or investing.
Gamification
Another feature adding to sustainability is our gamification, every week we will reward the account that has created the most nodes in that preceding 7 day period with 5 WINGS thereby creating a healthy competition within the community and incentivizing locked staking of UNICORN. Adding to this gamification feature we will also reward a randomly chosen node creator each week with a further 5 WING reward. To enter all that is required is to create a node during that week, each node created during the week will earn you 1 entry to the contest, multiply your chances of winning by creating more nodes during the week.
Seigniorage protocol support
A major benefit of having a node system tied to an existing seigniorage protocol is that the rewards pool can be topped up from minted seigniorage and the node pool in turn locks up the supply of the peg token thereby creating a synergy between the two. As mentioned above a portion of the total deposits are sent to the treasury to be used to maintain sustainability of the system as below:
TWAP < 1, Treasury balance of UNICORN is burnt to decrease supply permanently TWAP > 1.01, Treasury balance is used to add to UNICORN-WCRO LP by slowly selling half of the UNICORN and entering the LP this will increase total liquidity, add to protocol owned liquidity and increase stability of UNICORN TWAP > 1.1, Along with the above strategy a portion of the treasury balance is also slowly sold to invest in non protocol specific investments to generate a return that can be fed back into the system at lower TWAPs
Fairy Node system Flowchart
Future Nodes
Using our initial UNICORN Nodes as a prototype implementation we intend to implement several more node pools in the near future to multiply the benefits for our protocol. Below are several other node pools we intend to implement shortly after the UNICORN system launches:
LP nodes
Collab Nodes
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