👨‍🌾Staked Positions (spNFTs)

DonutSwap has introduced an innovative liquidity strategy involving non-fungible staked positions known as spNFTs.

Here's how it works:

Within the DonutSwap LP ecosystem, each LP has its own set of staking positions, referred to as spNFTs. Users can acquire these spNFTs by converting their LP tokens, essentially depositing them into the corresponding contract.

When a user creates a staking position, their deposit is transferred to a dedicated NFTPool contract in exchange for a unique staking position NFT, which serves as a form of deposit receipt.

These receipts are the sole means by which a user can withdraw the associated funds, regardless of who initially deposited them. Consequently, the owner of an spNFT also becomes the rightful owner of the corresponding LPs, even if they were not the original depositor.

However, these staked positions are more than mere receipts. They go beyond the traditional yield-generating farms commonly found in DeFi protocols, serving as an additional layer of functionality that opens up limitless opportunities and potential extensions.