Some insight into the short term future for the Squirrel.Finance ecosystem
Increased Insurance Cover 💰
Another priority of ours as the market-cap & liquidity increases is to offer more NUTS collateral per farm as insurance. Increasing the max compensation split between farmers can further increase our TVL in insured farms. Higher TVL brings in more fees which means more value for NUTS. Currently insurance fees are bought back as NUTS and distributed to the NUTS farm, but the long term goal is some of these are burnt instead so with enough TVL in farms NUTS can become deflationary with an implicit hardcap!
More Insured Farms 👨🌾
Also a priority is continuing to expand our range of farms to include more BSC projects to help grow our community and increase our TVL. We will also expand our support for insured farms, currently we just have single-asset farms (such as CAKE) but in the short future we will add support for LP farms as well as vaults!
NUTS Farm v2 💸
As mentioned above, currently the 20% yield fee on insured farms goes to buyback NUTS and is distributed to the NUTS farm. To date this has been over 3,000 NUTS bought & given directly to NUTS stakers 🚀 However to new people not familiar with where the NUTS come from “stake nuts to earn nuts” looks much like any other farm. So we have concepted a new approach which we believe not only looks more attractive to stakers, it also helps increase the liquidity & stability of NUTS. Shortly in future, the insurance fees will buyback 50% NUTS & 50% remains as BNB. This then becomes LP liquidity & is rewarded to the NUTS farmers. So now NUTS earns LP over time (which is indirectly both a BNB & NUTS distribution) and also allows you to compound into the NUTS LP farm for even higher APR 💪 See below:
Price Protection 🔗
In future we want to provide our users more advanced insurance offerings, such as Price Protection, meaning you can be compensated if your token value drops a large percent in a short period of time (e.g. rugged).
Farm Boosting 🔒
Another plan for Squirrel.Finance is to offer farm boosting similar to the Curve/Mobox system. Farmers lock up some NUTS for periods of time to earn extra farm rewards, this system can also be potentially tied in with other rewards (such as Price Protection mentioned above) for a powerful combination of incentives.
Once the inflation rate of NUTS approaches zero we hope to expand NUTS as a governance token. This will allow NUT holders to make proposals and vote on them. One such example could be voting on the amount of insurance fees used to buyback and burn NUTS, allowing holders to have a direct say in the supply controls. Any other proposals could be made and voted on as well.
And Beyond 🚀
In order to maximize growth we need to make improvements so that NUTS remain a desirable token rather than just a token people farm. We are currently brainstorming ideas such as referral schemes as well as premium insurance offerings. Finally another area we would like to further explore is our gamified farming initiative (similar games to FarmFomo but a variety of different formats).
All in all, there are plenty of things to be yet explored & this projects is still in it’s infant stage. We are hard at work on the features above, but if you have any suggestions or questions -please let us know via our Discord or Telegram, thanks for reading! 🐿️