The HODL Contract NFTs are unique NFTs created by each project launching a HODL contract. Each investor in the HODL contract gets an NFT based on his investment!
After explaining HODL Staking and Farming in our previous posts, we would like to discuss one aspect of it that could have been a real disadvantage.
In the HODL contract the project launching the contract decides on a time frame where the investors can deposit their tokens, and once the deposit time is over and the contract is live investors can ONLY withdraw their tokens and rewards.
This means that if someone missed that time frame they can’t really invest in the specific HODL contract. It also means that investors who need funds, for whatever reason, would have to cash out in order to get them.
In simple words, once the contract is live investor A will only be able to get out and potential investor B will not be able to go in.
Although this is a disadvantage, its one that still does not outweigh the advantages of the HODL contract. One way a project can overcome this is by launching multiple smaller HODL contracts in different time periods instead of one big HODL contract.
However, we wanted the HODL contract to allow as much HODLing as possible, in the most efficient way.
Introducing.. The HODL Contract NFTs!
What Are The HODL Contract NFTs?
The HODL Contract NFTs are unique NFTs created by each project launching a HODL contract. Each investor in the HODL contract gets an NFT based on his investment, showing the initial APR, the current APR, the amount invested, and other details regarding the contract.
By having these NFTs, the disadvantage we described above is no longer there!
Here is a simple example that will show why.
Investor A bought into a HODL staking contract of “Stake $X get $X” with an initial APR of 20%. He deposited 1000 $X tokens, worth $1000. The contract is for one year.
one month past in the contract and investor A wants to cash out. Assuming no one else cashed out, he will get 20% / 12 = 1.66% of his investment which equals to $16.6 reward on his $1000 investment.
Investor B missed the chance to join that contract but sees great potential in $X token and wants to stake it for long term.
With the NFT, investor B can now approach investor A and offer to buy his NFT. Investor A can only make $16.6 profit on his NFT if he cashes out, so any offer above $1016.6 would be reasonable. For investor B Since he knows that the NFT will make him AT LEAST 20% APR if he will hold it until the end of the contract, and most probably even more, any price Bellow $1200 would be profitable.
Now, all that is left is for investor A and B is to find a price they are both comfortable with and they can make the deal and transfer the ownership of the NFT.
There are a few benefits of having the NFT system:
- Investors eager to cash out have another way to make even more money WITHOUT cashing out.
- Investors who are hesitant about a depositing in a certain HODL contract, or missed the deposit time frame for any reason, can still invest in it by buying an existing HODL NFT of that contract.
- The project benefits that there is a lower cash out rate, and as a result more HODLing of the project tokens in the NFT.
- The NFTs can be sold in NFT marketplaces, giving the project even more exposure and token demand!
By now, you can see how beneficial the HODL contract NFT system is for both investors and projects, but there is more…
We know that one of the most important thing for a project and its investors is the exposure and branding of the project.
That's why we decided to take it one step further and make the NFTs Brandable!
Every project launching a HODL contract will have the ability to have their OWN background image so their NFT will be one of a kind!
With that option, the marketing possibilities are endless.
As an example, a project can launch a unique staking contract for its 1 year anniversary and have a their designer design a unique NFT background combining their logo and some balloons or fireworks.
Or 2 projects announcing a strategic partnership can create a “Stake $X get $Y” campaign with a unique background image of their logos combined.
By now we hope you are as excited about the upcoming launch of the HODL Staking / Farming Contract along with its customizable NFTs as we are.
Stay tuned for more updates. In the coming days we are planning on revealing some more exciting details about the HODL contract, and to show how easy it is to both launch your own HODL Staking / farming contract or join existing ones.
The Optimus Team
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