Emiswap has distributed the first lot of their Magic Card NFTs after its Total Value Locked (TVL) rose above $500k to reach $530k on May 26.
The DeFi project will first launch on the scalable, low-fee Binance Smart Chain (BSC). It is one of the first projects of the EmiDAO alliance made up of several exchanges and crypto funds, including DigiFinex Exchange, Bitmart Exchange, Alpha Sigma Capital and IDCM.
What is Emiswap?
Emiswap is an Automated Market Maker (AMM) DEX which incorporates the ESW governance token and Magic Cards NFTs to incentive liquidity providers.
Out of this arrangement, Emiswap's ESW compensates for Gas fees. Already, the project's smart contracts have been audited by blockchain security firm Hacken, and given a clean bill of health.
Emiswap is user-focused with a DAO that provides multi-blockchain compatibility. Notably, all DAO commissions and their community loyalty program will be based on NFTs. The compensation for Gas fees encourages participation that, in turn, aids in making the protocol interactive and powerful.
Magic Cards NFTs and Drive to $100 Million TVL
Their blend of DeFi and NFT, introducing Magic Cards for practicality, makes the project unique and is part of their objectives of creating an ecosystem of meaningful interactions.
Eventually, Emiswap hopes to reach a total value locked of $100 million. To reward loyalty and incentive participation from liquidity providers, the protocol will distribute Magic Card NFTs when Emiswap's TVL adds a specific amount of liquidity.
Unlike other NFT programs from competing DeFi projects, Emiswap's Magic Cards allow holders to farm, sell, or use them to participate in tournaments.
This makes the Emiswap ecosystem more interactive and mutually beneficial for network participants. Emiswap introduced the concept of gamified DeFi in such a way that their Magic Cards act as innovative loyalty gifts meant to increase a liquidity provider's rewards purposely.
Each card is transferable, playable, and within the Emiswap ecosystem, yield-earning. Receivers of Emiswap NFTs can trade them within the internal marketplace, hold them in their wallet or transfer them to other dApps or marketplaces.
Magic Card Types and Distribution to Loyal Liquidity Providers
In total, there will be 1,001 limited edition NFTs available in six categories, each with varying levels of rarity.
For instance, the one Mystic Magic Card is the rarest and most valuable. The 500 ordinary cards that will be minted are the most common.
The team designs each card to offer certain benefits to the cardholder. Not all will bear the same property. Depending on the level of liquidity provided and the length staked, the NFT type received will vary. One hundred cards (1 Legendary, 4 Epic, 15 Rare, 30 Uncommon, and 50 Ordinary) will have been released once Emiswap reaches the $10 million TVL mark.
At present, the protocol will distribute NFTs to liquidity providers after every $100k increment in TVL. However, there will be 1,000 milestones in total before the $100 million TVL is reached.
Out of these Magic Cards, holders have yield-boosting benefits when they supply liquidity, swap, stake ESW and more.
Emiswap battle cards can be used in participation in different Card War tournaments and construction of decks where players compete for rewards.
Their leverage of NFTs is part of their goal to encourage participation and improve liquidity.
The Emiswap AMM protocol, towards this end, uses Moonswap—which forked from Uniswap v2—that prevents front-running translating to more profits for liquidity providers.
The protocol pays 0.25 percent of all swapping fees to liquidity providers. However, Emiswap, in their estimation, expects rewards to double in the first three months due to their various liquidity provider incentives, including a 10X reward to LPs, daily distribution of ESW and compensation of Gas fees in ESW token.