BooFinance: Offering Scary High Yields
Just days ago, the long-awaited BooFinance went live, just over 3 months after its token launched via Penguin Finance.
If we look at the price at which the token went on sale on Penguin Finance’s Launchpad and again at the price now, we get an idea of how successful its launch has been. Best of all, Boo FInance is only just getting started and their mechanisms are seemingly programmed to push the tokens price upwards. Currently, the app offers 3 services: The Cauldron, Staking, and The Well of Souls.
BooFinance provides the unique possibility to yield-farm in a whole new way by depositing tokens into The Cauldron.
The Cauldron is a first-of-its-kind invention that accepts 28 LP tokens and 12 single-stake tokens, with further coin consideration open to infinite possibilities. The Cauldron uses the deposited tokens to earn rewards on other platforms (e.g., it earns JOE from TraderJoe, PNG from Pangolin, QI, and WAVAX from BenQi, etc.) then swaps those rewards to BOOFI, creating upward price pressure on the BOOFI token.
Deposits to the Cauldron earn zBOOFI, which is the staked version of BOOFI similar to xSUSHI or xJOE, the difference being, zBOOFI has a dynamic withdrawal fee that will be determined concerning recent “unstaking” activity (1-25%, distributed to everyone else holding zBOOFI). This provides a disincentive to the process of farming to “dump” and therefore increases the growth rate of the BOOFI/zBOOFI ratio.
These pools are generating high APR’s, which are not as easily diluted as the traditional farms we may be used to so far, thanks to the innovative mechanism on which The Cauldron operates.
BooFinance also utilizes the BOOFI that is bought with reward tokens (earned profits from yield farming with cauldron deposits) to increase this ratio even more, as well as to provide rewards to a “stakeception” style product called the Well of Souls, where users can stake zBOOFI to earn harvestable BOOFI over time directly.
The ‘Well of Souls’ is another twist on the BooFinance staking system, as it is the place where you can stake your zBOOFI (yes, double stake). If you contribute your zBOOFI here, you will generate even more APR on top of what you were already generating (in this case there is no fee to remove it from the Well of Souls), but it doesn’t stop there. The main objective of the Well of Souls is to incentivize BOOFI holding through a ‘who generates the most yield’ competition, following a ranking of ‘Top Necromancers’, where in the future rewards such as NFT’s or more tokens will be given out.
Future BooFinance applications
At the launch of its App, two of its features have yet to see the light of day, namely its deflationary NFT’s and the ‘Boo Council’. The NFT’s will be focused on gaming and will have limited uses, depending on the results of the fights with other Boofi’s! Regarding the ‘Boo Council’, it will be their way of creating a governance system for important decisions and general management.
