Launching Sponsored Farms: Guaranteed APR!
Ahead of Don-key’s V2 product release, which will transform the product by giving the community access to strategy creation autonomously, the team is launching its set of Sponsored Farms on Monday, March 28th. Picked due to their reliable performance and usage of well established underlying protocols. Sponsored Farms will come with a variety of benefits and exist to be distinguished from community curated ones.
Both Sponsored Farms and Community Farms will enjoy Don-key’s third party custodianship with Fireblocks so that individual farmers never have access to funds. However, only Sponsored Farms will get to enjoy a guaranteed weekly APR — a huge innovation for DeFI yield farming.
First launch APRs for the week of March 28th to April 4th:
This is how it works: While users deposit with a native currency — BUSD, CAKE, or BNB — their earnings will be given in $DON, pegged to the U.S. dollar and distributed linearly at a constant rate. In other words, profits will be measured in dollars but given in $DON tokens; so if the price of $DON goes down at the time of claim, the investor will get more $DON and visa versa in order to preserve the dollar value of farming profits. The given APR percentage embeds the auto-compounding function of each strategy.
Keep in mind: The initial investment deposited for farming (CAKE, WBNB or BUSD), will never be converted into $DON; only profits will be at the time that they are claimed, so deposited investment is never exposed to any other token other than the one deposited in.
Also crucially important, given that farming profitability is variable, weekly profit allocations will be updated once a week on Monday at a fixed time.
Sponsored Farm Advantages
The advantages of Sponsored Farms are two fold: First, users can depend on a guaranteed weekly investment return, and second, the $DON token will be granted a permanently high level of trading volume — which incentivizes more liquidity and token action. This will be done by trading profit earned by the farms from whatever active token type into $DON, which will provide steady buying pressure to balance token sellers who earn $DON through Sponsored farming.
Sponsored Farms will begin with three tokens: BUSD, CAKE and WBNB, but will expand the list to include many other token types from other blockchains. Unlike accelerated rewards, these farms will no longer have $DON profit price floors and will have a maximum investment amount of 500k per investor within each farm.
Unlike the old accelerated rewards system, investors can utilize loans from Don-key’s lending layer to earn even more $DON rewards — giving even more value to higher tier members who enjoy higher weekly returns with each tier rung they climb.
The only fees associated with Sponsored Farms is the 0.5% entry fee meant to pay up-front the gas costs of chasing the highest available APR across the DeFi ecosystem. These fees will go towards underlying protocols that have their own deposit fees, swaps, and bridges. Beyond this, there will be no 5% farmer fee and no 5% platform fee.
Skip the Fee: Enter Now!
At the date of creation, all users currently invested in eligible BUSD, CAKE, and WBNB strategies will be automatically migrated and get to skip the 0.5% entry fee. So to enjoy this benefit, deposit into the existing farms before the migration on Monday March 28th.
The following farmers will be migrated to Sponsored Farms:
BUSD — The Chief, Madsive1, ElonHusk
CAKE — Donkeylux and EGLDMaxi
WBNB — BNBull
Because Madsive1 is Don-key’s most popular farm, the team will be deploying a new non sponsored pool immediately after migration. The rest of the farms will be launched as non sponsored alongside the V2 launch coming in April. All non Sponsored Farms will no longer accrue accelerated $DON rewards and will exclusively pay yield in the underlying invested token asset.
Sponsored Farms and The Tier System
Given that weekly APRs change on a weekly basis, guaranteeing a long term tier based return isn’t possible. However, after Sponsored Farms have had some historical data, with hindsight, the team will be able offer a more concrete predictive framework for how tiers influence profitability.
For now, beyond week one’s tier profit breakdown (above,) we can simply introduce the broad premise and why higher tiers in Sponsored Farms offer investors massive profit upside.
Tier 0 $DON APR, pegged to USD, will be either equivalent to or slightly less than the real APR that farms generate. From this baseline, higher tiers will be given additional earnings on top of that.
The profit gap between tiers will vary according to prevalence of whales within lower tiers vs higher tiers within each farm. Other factors include the current price of $DON, with higher prices correlating to higher APR returns and Don-key’s ability to time buybacks at times of lower price activity.
Farming generated token buy-backs combined with more utility to the token ,which will be discussed before V2 launch, will set the foundation for a deflationary tokenmics. The team is incredibly excited to roll out more information in the weeks ahead.
About Don-key Finance
Don-key.finance is building the first social trading platform for yield farming, bringing together liquidity providers and yield farmers alike. For this reason, the community refers to Don-key as the eToro of Yield Farming, which is a title the team embraces wholeheartedly.
The goal of the platform is to eliminate yield farming’s infamous complexity and replace it with a seamless retail experience, streamlined to offer the most profitable and adaptive product on the market.
With just one-click users can route their liquidity — in whichever token they chose — through professionally designed strategies that are updated to chase the highest available APY while minimizing risk.
Competitive Yield Farming is a full-time job; Don-key does it, so you don’t have to.