New platform combining DeFi, NFTs, and gaming. Also, cute dogs!
FarmHero is a new protocol on Binance Smart Chain that allows users to farm the native HERO token, and then burn that token for a chance to win big prizes. The platform mixes DeFi with NFTs and gaming elements and has plans to bring the platform to other blockchains as well.
At the moment of writing the FarmHero yield farm has more than $20 million total value locked (TVL). According to data from DappRadar the newly launched platform has attracted 1,360 unique user wallets so far, responsible for a combined 19,480 transactions and more than $3,38 million in volume.
This makes FarmHero a relatively small platform on Binance Smart Chain, but it does offer something that sets it apart from the competition. Players, users, and yield farmers can use special NFTs to increase their earnings. In addition, there are special games that require users to burn their tokens for a chance for big rewards.
At the moment FarmHero offers two types of farming opportunities: NFT farming and yield farming. Through the yield farm, users can stake HERO tokens and enjoy an APR of at least 2800%. Staking, which is the DeFi equivalent of putting money in the bank, allows users to earn either HERO tokens or BUSD, a dollar-pegged stablecoin on BSC.
Furthermore, the platform supports a variety of liquidity pool tokens, for example, ETH-BNB LP and CAKE-BNB LP. These pools offer 45% and 115% APR respectively. However, the high amounts of APR are on the LP tokens with the native HERO token. For example, HERO-BNB LP offers 5,144% APR.
If the term APR sounds confusing, it means annual percentage rate. This percentage stands for the return on your investment calculated over 12 months based on current data. When more people join a liquidity pool, the APR will drop. Also, the actual value of someone’s returns depends on the value of the tokens. An APR of 5,000% means nothing when the value of a token plummets to zero.
The gaming element
The second farming opportunity is NFT farming. Joining in this method requires users to first buy an NFT. Currently FarmHero sells their Genesis series, which consists of three NFTs: Doggy Hero for 9,9 BNB, Doggy Farmer and Doggy Miner for 1,99 BNB. Each of these NFTs can earn a percentage of the minted HERO tokens per blockchain block.
Doggy Hero gets the owner 0.00088% of the minted HERO tokens per block, while the other two NFTs get you 0.000158%. HERO tokens can in turn be used in the Auction Game or the Fomo Game. In the Auction Game players bid and burn their HERO tokens in an effort to win a prize pool. Only the highest bid wins, while all entries burn their tokens.
In addition the Fomo Game allows users to buy KEYS to have a chance to win the daily prize pool. You enter the game by purchasing and depositing your KEYS, and you will share subsequent key deposits within the round. Each key deposit adds 30 seconds to the timer, and the last one wins and ends the game. Once a round ends, 20% of the BUSD pool will go to the winner, while 50% gets shared between all key deposits. The remaining 20% goes to the next round. Technically, if you’re early in a busy round and you deposit a big bag, you have a chance of earning a good amount. Earlier this week someone spent 0.2 BNB on KEYS and won 30,000 BUSD from the pool.
All HERO spent on these games gets burned and this will therefore result in fewer tokens on the market.
Support from Binance
Earlier this month FarmHero joined Binance’s Most Valuable Builder program, supporting startups that utilize NFTs. Binance sees NFTs as their next growth factor. It’s a market good for more than $2.1 billion in volume this year so far. However, most of the NFT action takes place on other blockchains. Binance’s MVB program needs to give the utility of NFTs within the Binance Smart Chain ecosystem a boost.