xPEFI boasts the highest IL-proof APY in Avalanche. How can this be possible? For the past few months, the PEFI emission rate has been drastically reduced in order to increase token scarcity and reduce sell pressure. We've allocated a higher percentage of the Liquidity and Staking allocation to the Nest in order to encourage PEFI staking and reward long term investors.
In order to maintain a stable APY of around 11,000% for xPEFI users, the Nest was receiving a daily deposit equivalent to 1.3% APR per day. In order to transition to a more deflationary model, rewards will be switched to a more static distribution.
The current Nest Daily Rewards is set at 63,000 PEFI per day. On top of this, it also receives fees generated from the Penguin Emperor and Compounder. Future dApps will also distribute their fees to the Nest. Since the Nest compounds itself automatically, you reap the benefits of the best single asset staking APY on Avalanche.
xPEFI is the main staking mechanism on the Penguin Finance ecosystem. Overtime, you’ll earn PEFI by HODLing xPEFI tokens, and also gain access to exclusive dApps inside of the ecosystem. xPEFI is an ERC20 token that is always exchangeable for PEFI. When you stake your PEFI into the nest, you effectively exchange your PEFI for xPEFI.
Once you bought xPEFI with PEFI, the value of your tokens will appreciate against PEFI with time. This is because a percentage of the Liquidity and Staking allocation is sent to the nest every day. In addition, part of the fees collected throughout the entire ecosystem get sent to the nest!
The ratio of xPEFI to PEFI only increases with time. Each time PEFI is sent to the Penguin Nest for distribution, it increases this exchange rate. There is no mechanism to ever decrease the exchange rate (no impermanent loss whatsoever). When you leave the Penguin Nest, you benefit from the accumulated difference in exchange rate between both tokens, and therefore earn PEFI! This mechanism prevents your xPEFI from ever losing value, yet you still get APYs of over 400%+ against our native token, PEFI.
In addition to rewards being minted as 4% of Igloo rewards, most of our dApps collect fees from the ecosystem. Here is a list of how much is collected in fees.
Penguin Emperor: 1% of all transactions goes to the Nest
Penguin Compounder: 2% of all rewards get sent to the Nest
Our Nest-exclusive dApps require users to use xPEFI for our platform, effectively making it a valuable token to hold as an investor. Not only are you collecting fees from these applications just by being an xPEFI holder, you’re getting access to the entirety of our ecosystem.
Some of the applications that require xPEFI include:
Penguin Emperor. The bidding system of this entertaining king of the hill dApp requires xPEFI.
Penguin Launchpad. Every tier of our upcoming IDO platform requires you to hold a certain amount of xPEFI, not regular PEFI, in order to participate in token sales.
Club Penguin. Our upcoming initiative to earn new tokens and help projects gain recognition in Avalanche requires Penguins to stake xPEFI.
In order to receive the rewards, Penguins commit to locking their $PEFI token inside the Penguin Nests which will generate a passive stream of income and magnify the APY of all our Penguins. As a means to protect our long-term investors and punish weak-handed traders, there is a Paper Hands Penalty. This percentage is lowered every week until it reaches 0%. You can withdraw at any time but be mindful of the aforementioned penalty. To check what the current PPL (Paper Hands Penalty) is, head over to our Nests page.
To increase token value and reward long-term investors, 100% of all penalties will get burnt and therefore lower circulating supply.