Earning Yield

There are multiple strategies to earn passive yield on Pilgrim Protocol; we will list just a few of them below.

Listing NFTs from your wallet

Listing any NFT from your wallet or minting your own NFT will result in PIL rewards from both the Protocol Treasury and trading fees, as long as it results in sufficient round trading volume.

Choose NFTs that are speculative, meme-able, or meaningful; for example, an NFT that has the potential to go viral on TikTok or Twitter will generate the most yield, as well as significantly higher upside. Tweeting about your Pilgrim pool and forming a community around it would also help your NFT gain traction from the broader community.

A campaign that redirects yield to a social cause or presents a message may have the most impact. Think of Pilgrim pools as a YouTube or TikTok video with its own memecoin attached to it, that also happens to generate yield without relying on ads!

Rounds corresponding to such NFTs could also be used as social tokens or DAO shares; reference implementations and examples shall follow soon.

Listing Uniswap v3 Liquidity NFTs

Providing liquidity to Uniswap and mining PIL with it is one of the safest strategies to earn yield from Pilgrim Protocol. Some recommendations are:

  • Stablecoin to stablecoin pairs: USDC-DAI-UNIV3-LP, DAI-USDT-UNIV3-LP, etc.

  • Stablecoin to yield-bearing tokens: USDC-cUSDC-UNIV3-LP (Compound), DAI-yDAI-UNIV3-LP (yearn.finance), USTw-aUSTw-UNIV3-LP (Anchor Protocol), etc. This gives you exposure to three different sources of yield: swap fees, yield from underlying assets, and PIL rewards.

  • PIL liquidity mining: PIL-WETH-UNIV3-LP (unstable), PIL-xPIL-UNIV3-LP (stable). This option provides users with the highest APR.

Note that listing your NFTs with PIL as its base token will result in the most PIL rewards.

Dual Yield Farming and Hedging

Nonfungible positions that gives out token rewards in itself may be listed on Pilgrim to earn additional yield. For instance, Mirror CDPs result in MIR tokens; wrapping them as an NFT and listing them on Pilgrim will also result in PIL tokens, which provides users with double yield.

Multiple positions from different DeFi protocols may be composed together for hedging and combined incentives. An example would be with Maker Vaults and Mirror CDP positions: as ETH - DAI vaults are ETH longs, and UST - mETH CDPs are ETH shorts, a dynamically rebalancing hedge of both positions wrapped as an NFT would result in Maker stability fees, MIR rewards, and PIL rewards at the same time.

Uniswap-like liquidity adapters

Liquidity positions or other nonfungible positions may be composed with Pilgrim to be used as self-rebalancing collateral with protocols like OlympusDAO.

Nonfungible real world assets, such as carbon credits or corporate bonds, may use Pilgrim as a valuation adapter with OlympusDAO or its forks without oracle or valuation issues.

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