While staked positions under the form of spNFTs has a wide range of use, one of their main initial purposes will be to replace classic yield farming mechanisms by receiving WispSwap incentives.
From the perspective of a user, the spNFT mechanism shares several similarities with conventional DeFi farms.
However, unlike regular farms that allocate rewards to staked assets, the WispSwap's Master contract offers incentives to all veWISP holder-voted wrapped LP staking positions.
It is important to note that not all staking positions are eligible for WispSwap yield incentives, only the selected assets..
Once a staked position's LP is part of the listed pairs, the spNFT generates yield with rewards from the Master, simulating staking in a conventional farm.
The share of rewards in the total amount varies depending on the asset, with a default allocation of 80% veWISP and 20% WISP.
The values of these methods vary based on the staked asset, ranging from 0% to 150% (x1 to x2.5) but are typically set to the default of 100% (x2).
The total multiplier of a position is calculated by adding these two multipliers, with each pool having its maximum boost, capped at 200% (x3) by default and an absolute cap of 250% (x3.5).