After reading this article, you will learn how you can trade on the most popular binary exchanges in the world without any commissions and at the same time have extra passive income. This is exclusive but rather complex information, so please be patient and dive deeper.
The platform we will be talking about is Nominex.
Previously, it was just a centralized exchange, but now it is a complete ecosystem that has already brought several unique products to market, including products currently in the popular DFI direction.
In short what is agriculture
For the average person, understanding DFI farming is quite a difficult concept.
But in this article, we will crack these nuts effortlessly.
There are decentralized exchanges like Uniswap or PancakeSwap. They work entirely on smart contracts. And in order to exchange one currency for another on these exchanges, you need a smart contract to save a sufficient number of both currencies.
This storage of two coins for a trading pair in a smart deal is called liquidity pool. And the more coins are injected into this liquidity pool, the more favorable price you can sell or buy coins through this liquidity pool. Indeed, a pool of liquidity in a decentralized exchange is a DOM (market depth) in central exchanges.
Let’s look at the steps using the NMX-USDT Liquidity Pool as an example.
- First, an equal proportion of NMX and USDT coins are sent to the liquidity pool.
- In return, Liquidity Pool sends you a special Liquidity Pool Token (LP Token). This is a type of deposit agreement, which will later allow you to return the liquidity pool tokens to the liquidity pool so that it returns your invested money.
- Next, send the LP tokens you receive to another smart contract, which distributes NMX tokens according to the share of your LP tokens in the pool, which is basically called farming. This award in the form of NMX tokens is an inspiration to fund the pool with liquidity so that other people can trade at a better price.
How is agriculture related to DeFi (decentralized finance) technology?
Everything here is based on smart contracts. No one controls the process of token distribution through liquidity pool or cultivation. So, the funds you send to the liquidity pool are not sent in exchange for Nominex and it is not the wallets that control it, but a smart contract that has been audited for security by Alexei Mekiv, a representative of unhash.io. With this smart deal you can successfully withdraw your funds at any time.
Regarding token allocation
- The Beans Smart Chain blockchain will continue the process of cultivation for 72 years with healthy, deflationary tokenomics, ensuring fast transaction speeds and minimal fees in the market.
- During this time, 200 million NMX tokens will be distributed
- NMX is a BEP-20 token. The current value of the NMX token is $ 24
- The liquidity pool is hosted on the well-established decentralized exchange pancakeswap.
- Obviously, the pair of NMX and USDT tokens required for liquidity pool must be in BEP-20 format.
The annual profit of cultivation on NMX tokens is currently about 190% per annum with weekly reinvestment.
In the case of funds invested in the liquidity pool, the yield is calculated as dollars equal to the farmed NMX tokens for the year. But at any one time a user can withdraw both the farm token and the total amount of funds invested from the liquidity pool.
There is only one risk and that is if the price of the NMX token starts to fall, as in general, to any other currency. Then a user may face permanent loss.
But let’s look at the price list of NMX tokens
The token was launched on February 25, 2021 and since then has shown remarkable resilience over time like other launched projects.
Although there was a correction in the entire crypto market, the NMX token was working great, but over time its value declined due to the reduction of funds in liquidity pools. The mystery of this result lies perfectly in the utility of the agricultural process, which we will now consider.
Nominex is the first centralized exchange to integrate DFI into a centralized product in such an elegant and efficient way.
The idea is as follows:
- Depending on the amount of funds you put into the liquidity pool for farming, Nominex gives you a certain level of credit within Nominex
- The higher your level, the higher the trading commission discounts on the exchange and the higher the affiliate program rewards.
- For example, if you put K 10K into farming, you are given a maximum level that allows you to trade with zero commissions, i.e. completely free.
- Moreover, the maximum level allows you to get up to 40% per day from NMX tokens farmed by your referrals through the approved program. This is another unique feature called Team Farming that is applied to Nominex and elsewhere
At the MAX level, the exchange allows you to trade completely without commission and allows you to receive the highest rewards from all members of the partner team under the referral program, both in agriculture and trading.
Next, let’s focus on the affiliate program because the model of this affiliate program is unique to both farming and exchange.
If a user constantly shares referral links with his friends, he will be surprised at the size of the group in the near future. Farmer rewards will be received from people the user does not even know. Thanks to the binary model, not only those who have registered using the referral link, but all the people at the bottom of the chain fall into the group. And bonuses are accepted from all of them as mentioned earlier.
The essence of a binary affiliate program is that a user earns from a weak team. If you see that your strong team is already strong, then your job is to develop the weak. To do this, simply flip the switch on the “My Referral Tree” tab so that all subsequent direct referrals go to the weaker group.
Let’s briefly repeat how to make money in affiliate programs:
- Up to 20% of all tokens cultivated by your direct referral at the maximum level. Even if your weak team has nothing.
- 20% of the total cultivated tokens by all the people in a weak group.
In addition, don’t forget about 200% per year from regular personal farming, where you don’t need to invite anyone to register using your referral link.
Moreover, Nominex has found out how to motivate people to farm as long as possible – the benefits from farming can be increased up to 10 times over time.
At first glance, an approved program with an infinite number of levels looks a lot like a pyramid scheme. But in reality, NMX tokens are distributed in the market through agricultural mechanics according to a strict schedule. Only a certain number of tokens specified in the smart contract algorithm can be released on the market each day. This is achieved through the principle of proportionality of token distribution among all participants under the affiliate program.
Considering the growing number of agricultural participants and Nominex users, the demand for NMX tokens is increasing with a certain supply. Under the laws of economics, this usually leads to an increase in the value of an asset.
Weekly pools are growing and will continue to grow in the first year.
They will continue to grow until the fall that will continue for 70 years. It basically mimics the process of halving bitcoin.
Delivery follows a strict schedule. And now the daily pool already has 11 000 NMX tokens. In the first 15 months, the weekly pool will gradually increase by 4% per week. Cultivation will reach 17 000 NMX per day within 15 months. In other words, it is the stage of increasing the number of agricultural participants, which requires the supply of adequate tokens.
For the next 70 years, the pool will decline weekly.
In other words, this stage slows down the token issuance while creating a deficit.
The distribution system has been designed for 72 years. Of course, too early to see so far. A larger community may form in the future – the referral tree, where due to the spillover effect, a user will receive most of his referral bonuses from users he does not personally know.
Best for the end
Nominex users will be able to trade for free. The point is that Nominex is currently preparing to become a Binance Broker – this functionality has already been developed.
In fact, you can trade on Nominex with all the trading pairs available in Binance. All liquidity can be found at Nominex. Users’ funds will also be stored in the Binance Wallet. Thus, Nominex will be freed from its main flaws – a small number of coins, trading pairs and low liquidity.
At the same time, the terms of free trading and other level discounts for MAX partnership level owners will remain unchanged.
All of the above will make the trading process in Nominex as profitable and secure as possible.