🖼️Liquidity Position NFTs

On Planar, besides providing liquidity to receive LP tokens for earning a certain percentage of the swap fees, users can also wrap their LP tokens into NFTs called Liquidity Position NFTs (a.k.a lpNFTs). lpNFTs serve as proof of LP deposits made by users in the protocol. Beyond serving as proof of deposit, lpNFTs offer an additional layer of benefits.

Unlike in regular DEXes, not all LPs are yield bearing. Planar's Master contract distributes incentives only to the lpNFT positions of selected LPs.

If a particular lpNFT position is yield bearing, users can boost their yield by locking it for a particular time period, or allocating a certain amount of xPLANE to it on the Yield Booster. It can also be deposited into compatible Hyper Pools to earn additional rewards. Every yield-bearing lpNFT will have its own APY, based on the allocation set for the pool by the protocol, the Lock multiplier, and the Yield Booster multiplier. Each pool has a maximum boost limit with a default cap of 200% (x3) and an absolute cap of 250% (x3.5). The sum of these two multipliers is used to calculate the overall multiplier of the position.

Yield bearing lpNFTs receive rewards in PLANE and xPLANE with a default ratio of 1:4 respectively. However, this ratio varies depending on the pool.

lpNFT positions are transferable, so only the current owner of a particular lpNFT would be considered as the owner of its corresponding LP. It can be split and also merged.

The lpNFT has the capability to function as a wrapper for both LP tokens and single assets. Therefore, any protocol can utilize this locking mechanism to secure their liquidity without our involvement. Furthermore, protocols can integrate their own incentives layer by utilizing our Hyper Pools which can increase capital efficiency.

Say goodbye to boring LP Tokens; Planar introduces lpNFTs, a revolutionary way to represent your LP Tokens by wrapping them as unique NFTs. lpNFTs unlock the opportunity to access the true potential of the Planar ecosystem.