Nitro in a nutshell
Last updated
Last updated
Nitro Pools function as an extra layer within a farming ecosystem, allowing for the staking of spNFT positions. They offer users an added level of yield incentives, augmenting their current income, which includes trading fees and farming emissions in YUM and DSP, if applicable.
A - Suppose you establish a special non-fungible token (spNFT) using the ETH/USDC pair, and this pair is supported by DonutSwap through emission rewards. This investment will then begin to accumulate returns from farming emissions. By placing this staked position into a Nitro pool, your yield multiplies, encompassing three sources: trading fees derived from providing liquidity, bonuses from participating in the Nitro pool, and incentives from farming activities, resulting in rewards in the form of YUM and DSP.
B - In the scenario where you initiate an spNFT with the XYZ/USDC pairing, which doesn't receive emission incentives from DonutSwap, your profits are primarily from trading fees, which are automatically re-invested back into the liquidity pool. Nonetheless, if this staked position is contributed to a Nitro pool, you will receive two forms of income: trading fees as a result of your liquidity provision, and additional rewards from your involvement in the Nitro pool, with the potential to earn various types of tokens.