Advantages and extensions

spNFTs introduce an additional layer of features, opening up new possibilities and potential extensions:

Feature Layer

Staked positions serve as a "wrapping layer" around LP tokens, enabling any liquidity or single asset to utilize our locking mechanism seamlessly, without requiring our intervention. This means that every protocol, whether listed on DonutSwap or not, can utilize this stack to implement locks on their liquidity. Additionally, they can incorporate their own incentives layer, such as the Nitro Pools.

Custom Strategies

Users have the flexibility to create advanced custom strategies by creating numerous staked positions for the same LP, each with different amounts, lock settings, or boost mechanics.

Reusability & Capital Efficiency

Liquidity providers benefit from increased capital efficiency, as they possess a tangible record of their deposits that can be reused to generate even more rewards, as exemplified by the Nitro Pools.

In a broader sense, this design facilitates straightforward implementation for various other use cases, with a prime example being its use as collateral.