What is the Piggy Bank?
So far on the Animal Farm, the only option for the PIGS token was to stake in the Pig Pen for BUSD rewards. These BUSD rewards have been on the lower end relative to the rest of the farm. Yet this is designed to be a long-term, time-weighted play. As the farm grows, the BUSD paid out grows accordingly.
So far this has not been a great enough incentive for farmer to create liquidity in PIGS. So to incentivize more PIGS liquidity Forex Shark has provided an opportunity for those who want a somewhat shorter time horizon on their ROI. Thus The Piggy Bank was created.
The Piggy Bank builds upon the already very successful Drip Garden contract.
Similar to the garden, in the Piggy Bank you sacrifice your initial deposit. But this deposit will be in PIGS/BUSD LP tokens rather than DRIP/BUSD. After placing into the contract to buy ‘plants’ (or whatever it will be called in the Piggy Bank). These ‘plants’ will produce ‘seeds’ up to 3% of their value each day. These seeds can be used to purchase new plants and compound that 3%, or they can be claimed to retrieve LP tokens from the contract, which can be broken up and stored as profits.
The Piggy Bank will also use the same time-weighted mechanic as the DRIP Garden. This mechanic reduces the entry price of plants overtime to ensure that people who enter the game late will still have ample opportunity to make profit. This ensures the contract is sustainable as new capital enters the system.
Piggy Bank Upgrades
Keep in mind the Piggy Bank is not the same game as the DRIP Garden. There are several major upgrades that make this protocol different and allow for more profit.
Time-Locked Stakes and Bonus APR
The biggest addition to the Piggy Bank is the ability to optionally time-lock your deposit. Like the garden, you will not be able to withdraw your deposited amount into the Piggy Bank. Time-locking simply means guaranteeing not to claim from the contract until the end of your chosen period. You will still receive the same amount of ‘seeds’ each day, but you will exclusively have the option to ‘plant’ or compound these seeds, not claim them, until your lock period times out.
As a result from time-locking your stake, you’ll get a bonus percentage on top of your original deposit in addition to the normal 3% daily ROI. So far exact numbers aren’t released, but we know the bonus APR you receive scales exponentially in proportion to how long you lock up your stake, up to a maximum of 5 years.
Unlike other systems built in a similar vein (for example Hex), this bonus APR isn’t applied at the end of your stake, it’s applied exponentially during the time-lock period. This means you will be able to compound on the bonus you receive for even greater gains. Forex Shark unveiled the formula this uses, essentially that 30% of your bonus gets applied over time to your principal in the first 75% of your stake, and the rest exponentially after.
Multiple Transferrable Stakes
In addition, Forex has revealed that you will be able to create multiple stakes in a single wallet, allowing for you to create both short-term and longer-term locked up amounts. This allows you to balance immediate needs with longer term goals and hedge on the future price of PIGS, which make up half of these stakes.
These stakes are also transferrable, meaning they could potentially be bought/sold or gifted. This could be a great way for team leaders (see referrals section below) to get others into the Piggy Bank by gifting time-locked stakes.
Similar to the DRIP Garden, you can refer others to the Piggy Bank for a portion of the rewards they earn daily. However there is an additional mechanic here, which is that the percentage of referral bonus you receive is based on the number of DOGS you have staked in the single-asset DOGS staking pool on The Animal Farm.
The PIGS Lottery
A brand new feature of the Piggy Bank will be the PIGS Lottery. All funds for the lottery are to be generated from the entry/exit fees on the Piggy Bank. Just like DRIP garden, anytime you deposit or withdraw/claim from the contract, you pay a 5% fee. There is no fee to compound in the Piggy Bank. The 5% fee in LP tokens will be broken up, with the BUSD portion going to development fees, and PIGS portion going to the PIGS lottery.
Players of the lottery can buy tickets using DOGS tokens as well as DRIP tokens in order to try to win the daily amount of PIGS generated with these taxes. All such DOGS tokens used for this will be burned. This is aimed to cause price appreciation, and the DRIP tokens used will be deposited back into the Faucet tax pool to pay out users of DRIP.
Forex Shark estimates the amount given away in the lottery to be around $250,000 per 7–14 days (so between $17k and $34k per day winnable in PIGS). Of course the actual amount will depend on participants in the Piggy Bank, but initial amounts winnable in the lottery will be large based on initial users entering the Piggy Bank.
The Piggy Bank launches Tuesday, March 1st at 11am EST.
Visit TheAnimal.Farm to get started.
See Previous Article/Video on Drip Garden to learn how to start earning your 3% daily APR right now.