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Author Topic: [ANN] Neptune Mutual: Decentralized Cover Protocol on Binance Smart Chain  (Read 95 times)
neptunemutual (OP)
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May 30, 2021, 08:57:55 AM
Last edit: May 31, 2021, 08:13:22 AM by neptunemutual

The Neptune Mutual platform explores new avenues to creating user-centric hedging products on the blockchain. We aim to attract a new and steady user base and growing liquidity to the Binance Smart Chain by creating stablecoin-based products for accurate risk hedging and coverage.

There is no single entity that controls the future of the Neptune Mutual platform. The platform is conceptualized to democratically incentivize the “good actors” and punish the bad actors. Over the course of next several months, Neptune Mutual will be transitioned to fully function as a DAO.

Introduction to Features

Initial Farm Offering

There are a few ways initial users can get the NEP tokens without buying:

More information about Bond and Pool below. Keep reading.

Neptune Mutual Token (NEP)

The NEP token smart contract, as you can verify, restricts the owner to perform "unlimited minting" and only allows the following allocations. Time-based restriction exactly as specified below:

Total Distribution (Pre Release)

Seed Round45M NEP20% (9M NEP)Release: 20% immediately. After 1 Year: 40%. After 2 Years: 40%
Community Incentives22.5M NEP1% initially, remaining within 72 Months100% mint possible, community incentives will be gradually minted
Liquidity Pool Rewards67.5M NEP25% initially, remaining in 12 Months100% mint possible. Multiple rounds of liquidity pool rewards
Initial Protocol Incentives90M NEP0% initially, remaining in 12 Months100% mint possible. For incentivizing protocol users and liquidity providers.
Total225M NEP10-100% of this supply in 72 months

Main Release

The main distribution will happen only after the 225M NEP tokens are minted and gradually distributed to the community through liquidity mining. Although we may conduct an ICO at a later date, the allocation "Token Sale, TGE, Listing, and/or Distribution" does not necessarily mean an ICO round. It can be liquidity mining or an exchange launchpad distribution at a later date.

Token Sale, TGE, Listing, and/or Distribution135M NEP0-100% in 12 monthsThe below distributions can be minted only after this allocation
Grant, Ecosystem Development, and Partnership Pool180M NEPReleased after 365 days of token distribution start dateMint impossible before TGE + 365 days
Long-term Protocol Incentives (Platform Users)225M NEPReleased after 365 days of token distribution start dateMint impossible before TGE + 365 days
Founding Team, Legal, Corporate, and Employee Rewards135M NEP365-day mint lock, and then 5-year vesting schedule. 20% released each year.Mint impossible before TGE + 365 days + 365 x 5. Total 6-years after the TGE
Total765M NEPDistribution tokens released immediately, rest distributed gradually after 1 year

Please note: through governance, we can merge "Token Sale, TGE, Listing, and/or Distribution" category into liquidity mining, grants, or protocol incentives (except team allocation).

What is NEP Token?

The NEP token is both governance and utility token of the Neptune Mutual platform. You need NEP tokens:
  • For governance and voting rights
  • To provide stablecoin liquidity to the Cover Pool
  • To become a cover reporter
  • To create a new cover contract

Is NEP Deflationary?

We think so.
  • Foreign assets farmed under NEP pool will be used to purchase NEPs which will then be burned.
  • Creating a new coverage contract requires you to burn 1000 NEP tokens. Coverage creators will earn a small portion of the coverage fees collected in BUSD or BNB.
  • 4000 NEP tokens must be staked when creating a coverage pool. The higher your stake, the more visibility your coverage will get in the market.
  • Coverage pools are available in BUSD. We deduct 6.5% of the coverage fee or coverage claim in BUSD or BNB. The acquired BUSD will be used to purchase NEP tokens in the PancakeSwap exchange and then immediately burned in a single transaction.
  • Providing liquidity to a coverage pool requires you to stake 250 NEP or higher.
  • During dispute resolution (governance), more than 50% NEP of the minority is burned
Note: The suggested amount of NEP tokens to burn and/or stake is for information purpose only. Please be advised that these amounts are configurable and can change now or in the future.

Is This a Fork of <enter a name> something else?
No. Neptune Mutual is 100% an original project, not a copy of something else.

Are You Actively Building?
Yes. Follow our Github organization to learn more.

NEP Token 1.1YesYes
Neptune Mutual Web Application 1.1YesNo
NEP Bond Pool 1.1YesYes
NEP CAKE Farm 1.1YesYes
NEP Pool 1.1YesYes
BNB Liquidity Mining 1.1YesYes
NM Discovery Smart Contract 1.1YesNo
NM Covers 1.1No, In ReviewNo
NM Predictions 1.1Not Planned YetNot Applicable

  • The NEP token contract has fixed supply, time restriction is already hardcoded into the smart contract.
  • The bond, cake farm, and pool contracts are not upgradable.
  • The cover protocol contract will be upgradable with timelock implementation
Decentralized Covers

Anyone who holds NEP tokens can create a cover contract. To avoid spam, questionable, and confusing cover contracts, a creator has to burn 1000 NEP tokens. Additionally, the contract creator also needs to stake 4000 NEP tokens or more. The higher the sake, the more visibility the contract gets if there are multiple cover contracts with the same name or similar terms.

The contract creator will earn a steady income of 1% of all cover fees paid by the users. Initial contract creators will also earn additional 1% of the cover fees in NEP.

This added NEP reward comes from the Protocol Incentives allocation, as described in our token design. Once the allocation is fully distributed, this reward will be stopped.

About Reporting Questionable or Invalid Contracts

The governance system allows NEP token holders to vote to invalidate and remove any cover contract.
  • The staked NEP tokens of the contract creator will be burned.
  • The users having non-expired covers can withdraw their cover fee.
  • The liquidity providers can withdraw their staked NEP tokens, stable-coins, and cover fees.
The liquidity providers can evaluate a cover contract and ensure that it is up to their satisfaction. One can then provide liquidity in BUSD or other supported cryptocurrency. A liquidity provider needs to also stake 250 NEP or higher.

Farming Strategy

To maximize return on investment, 25% (or lower) of the idle/uncovered assets in the liquidity pool is supplied to Venus Protocol for lending. The interest received on loan is converted to BUSD to be capitalized back into the liquidity pool, shared amongst all liquidity providers. The platform will deduct 2% of the profit generated to purchase (and burn) NEP tokens from decentralized exchange(s).

This feature will be available starting from the Neptune Mutual Protocol v2.

Cover Fees

The liquidity providers collectively earn cover fees paid by the platform users. Initial liquidity provider will receive additional 10% rewards in NEP tokens.

This added NEP reward comes from the Protocol Incentives allocation, as described in our token design. Once the allocation is fully distributed, this reward will be stopped.

Purchasing Covers

Anyone who holds 1 NEP token or higher can purchase a cover contract for up to 3 months in the future. No KYC is required.

To guarantee successful claim payout, the platform will restrict liquidity providers from withdrawing the locked assets for a set duration of time (configurable, governance).

The realized  (non-claimable, expired) cover fees automatically accumulate in the pool. This ensures liquidity providers see their capital grow without having to withdraw.We will incentivize initial users by airdropping NEP tokens.

Reporting & Governance

Anyone can report an incident to have happened by staking 100 NEP tokens or higher in the cover contract pool. With this, the contract now becomes open for governance. The locked NEP tokens are added to the reporting pool balance on the "Incident Happened" side. Other people who disagree can also lock any amount of NEP tokens on "False Reporting" side.

This then puts the contract into "Reporting" status. Interested users can still purchase covers (if liquidity is available) for the future as the protocol automatically locks liquidity to provide successful claims in the future. During the reporting period, users can stake their NEPs to vote. At the end of the reporting period, the side with the majority gets 75% of the minority's stake. The remaining 25% stake is burned.

To encourage competition and faster reporting, the protocol rewards the first reporter with 33% of the total reporting fees. To discourage malicious actors, the platform will burn all stake if the majority disagree with the reporter. If this happens, the first user who reported on the other side will get the 33% reward instead.

Protocol Fees

The protocol automatically deducts 6.5% of the fees. A portion of this fee is rewarded to the reporters while the majority of the fee (in stable-coins) is utilized to purchase NEP tokens from a decentralized exchange. The acquired NEP tokens are then burned, thereby reducing the total supply.

Prediction Market

TBD, not planned yet.

How do I benefit from the Neptune Mutual platform?

To manage risks, the Neptune Mutual platform provides users with a guaranteed stablecoin liquidity. On the other hand, the liquidity providers collectively earn the coverage fees generated in the pools. Additionally, the platform also incentivizes the users by “airdropping” a certain amount of NEP tokens to the early users on both sides.

By Managing Risks

By Supplying Liquidity

How Do I Get NEP Tokens?

By Participating in Bounty Program

We are pleased to announce our first bounty round. This round will have a total of 250 winners each awarded 500 NEP tokens.

Read the Bounty Announcement Here

By Bonding

You can acquire NEP tokens by bonding popular cryptocurrencies and stable-coins like BUSD, BNB, and more. Note that there is a locking period of 90 days before your bond is released. When your bond is released, you get your liquidity token back + bonded NEP tokens (minus fees). During the bond period, your liquidity + NEP tokens are added to the PancakeSwap exchange's liquidity pair. This means you will also receive profits and will bear the loss of being a liquidity provider in a decentralized exchange.

By Farming

Select a cryptocurrency, liquidity token, or NEP you wish to stake in the NEP Pool which generated NEP as the pool reward. There is a minimum lock period of 24 hours before you can un-stake your liquidity.

Will the Bond & Farm Close in the Future?

Yes. Both bond and farm pool smart contracts are written in such a way that they automatically end as soon as the maximum amount of "liquidity token" is staked. Note that there isn't a continuous supply of the NEP tokens and we can only provide maximum up to the amounts specified in the above token distribution allocation table. Also, being a deflationary token restricts us to keep running the liquidity mining functionality. It's simply impossible to do so.

What Is the List of Exchanges That Will Be Covered?

The Neptune Mutual platform allows any NEP holder to create a cover contract. A creator needs to burn 1000 NEP tokens to create a new cover contract. To prevent fraudulent contracts, the creator is required to lock 4000 NEP or more. The cover creator will earn a percentage of the fees (in BUSD) collected in the contract.

How Can I Earn in the Cover Pool? What Are the Benefits?

In order for you to join a coverage pool as a liquidity provider, you need to stake 250 NEP or higher and supply BUSD liquidity in the pool. You will earn your proportional share of cover fees earned on every block. The protocol deducts 6.5% of the total cover fees and then transfer it back to the pool. This automatically compounds your liquidity in the pool for higher returns.

Note: To encourage more people to join the cover pool, the protocol will airdrop NEP tokens to the initial liquidity providers on top of the cover fees. This will be stopped when we run out of NEP reward allocation.

The fee deducted by the platform will initiate a swap transaction in the PancakeSwap Exchange and the received NEP tokens will be burned in a single transaction.


Official Website

Neptune Mutual, Decentralized Cover Protocol on Binance Smart Chain
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