Yield farming, also commonly known as liquidity mining, is a passive way of generating earnings by contributing to liquidity pools. In the case of Vinci Protocol, it is the process of getting rewarded with VCI tokens for doing NFT lending and borrowing.
35% of the VCI total supply, 400,000,000 VCI, is allocated to Vinci Protocol Lend/Borrow Incentive.
- Reward Release Rule: linear release
- The market value of each NFT collection will determine the proportion of tokens available to each lending pool. It can later be modified by DAO Voting.
- The reward ratio of Lend and Borrow is 1:4, so as to stimulate borrowing actions.