TL;DR
- Meta Yield: a Kickstarter for New Projects on NEAR
- 4 Questions to Ask Yourself before Backing a Project
- How to Back a Project on Meta Yield
- Rewards Received for Backing a Project on Meta Yield
Meta Yield: a Kickstarter for New Projects on NEAR
Meta Yield is an unprecedented platform created by Meta Pool for new projects on NEAR to raise funds in a kickstarter-like fashion and to get exposure to the NEAR community.
Meta Yield’s objective is to provide exposure and access to different projects. It enables the community to financially support web 3.0 projects built on NEAR protocol by only committing their staking rewards to a specific project.
Meta Yield only uses the staking rewards generated by the locking of your stNEAR to fund a project. Let’s explain how to back a project on Meta Yield.
4 Questions to Ask Yourself before Backing a Project
Even though the Meta Pool team is curating as much as possible the projects launching a fundraising campaign on Meta Yield, nothing is guaranteed and there are always risks.
So before diving into how to financially back a project on Meta Yield, here is a first set of questions you have to ask yourself before backing a projects are:
- Do I understand the project’s offering?
- Am I convinced by the Project (product, service, team, roadmap, etc) and its value proposition?
- Do I believe this project is going to increase in market share, TVL and token value over time?
- Do I consider that all the above and the reward (project token) is good enough for me to back it?
Make sure to study the information available in the project profile on Meta Yield:
How to Back a Project on Meta Yield
In order to back a project you need stNEAR. We invite you to read our guide explaining what is stNEAR, how it works and what is liquid staking.
You can get stNEAR through liquid staking with Meta Pool: https://metapool.app/dapp/mainnet/meta/
stNEAR and Liquid Staking
The important things about stNEAR are that:
- stNEAR price is a direct function and totally dependant of the $NEAR price
- stNEAR accrues in value every epoch
- the stNEAR value accrues by the APY (that is ~10% as of today)
So if you liquid stake 10 $NEAR now you will get ~9.246 stNEAR and that increases over time.
That also means that if you unstake your stNEAR after 12 months, you will get back your 10 $NEAR + the staking rewards that will be of ~1 $NEAR
Backing a Project with stNEAR on Meta Yield
Let’s say that you back a project with ~9.246 stNEAR.
When you back a project on Meta Yield, the element used to fund that project is the staking reward. Leveraging our liquid staking example used before, this means that only the 1 $NEAR staking reward generated after 12 months goes to the Project backed.
And most importantly, you get back ALL of your 10 $NEAR! Thus Meta Yield making this backing processing 100% de-risked for the backer.
Rewards Received for Backing a Project on Meta Yield
In exchange for backing a project you will receive as a reward a certain number of the project’s native token (in a near future NFT as reward should be supported by Meta Yield too).
Important: this number of token rewards varies from one project to another, from one fundraising campaign to another.
The quantity of project’s tokens awarded is proportional to the amount of stNEAR you use to fund the project. The ratio of Reward per stNEAR (and therefore the value of the Project’s native token) is determined by the project itself based on its own specific criteria which could be such as:
- Upcoming IDO or IDO already done
- Pre-sale / Private sale parameters
- SAFT
- Airdrop
- etc
Here is the example of PembRock and how many $PEM you get for committing 1 stNEAR to support their project:
The number of tokens you receive in exchange for your stNEAR is also a function of the funding goal reached.
Fundraising Goal #1
Up to 930,000 $PEM Reward Allocation
Fundraising Goal #2
Up to 1,275,000 $PEM Reward Allocation
(non cumulative with previous goals)
Fundraising Goal #3
Up to 1,700,000 $PEM Reward Allocation
(non cumulative with previous goals)
Fundraising Goal #4
Up to 3,000,000 $PEM Reward Allocation
(non cumulative with previous goals)
So, to recap using the PembRock Finance example, if the fundraising campaign reaches:
- Goal #1, you’d get ~7.44 $PEM per each of your stNEAR committed
- Goal #2, you’d get ~8.5 $PEM per each of your stNEAR committed
- Goal #3, you’d get ~9.4 $PEM per each of your stNEAR committed
Conclusion
So, looking at the process based on the example/illustration given previously, this means that if you back PembRock with 9.246 stNEAR (you will have staked 10 $NEAR to get ~9.246 stNEAR):
- You will get back your original 10 $NEAR after the lock period
- The corresponding staking rewards generated after the lock period will go to PembRock
- You get ~75 $PEM (maybe more if the funding goal reached is the highest one)
*** Basically you would get ~75 $PEM just for locking 10 $NEAR during 12 months with zero loss ***
Some will argue that backing a project on Meta Yield is not zero loss because it is an opportunity cost.
An opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen. Technically an opportunity cost is a potential cost and not a realized loss. It could only become a realized cost/loss if:
- the assets put on the line for backing purposes are not recoverable AND,
- the opportunity you back is generating less value/return than the one you didn’t back
And that is not the case when you back a project on Meta Yield! Actually backers always get ALL their $NEAR token back (minus the staking rewards).
FYI, Meta Pool is planning to open a secondary market where you will be able to trade your IOU (contract between you and Meta Yield for your backing of a project) and become liquid again.
In any case, all of the above is no financial advice or recommendation. Make sure to read Meta Pool Disclaimer before engaging in any financial activity with Cryptos.
About Meta Pool & stNEAR
Meta Pool is the leading liquid staking solution for $NEAR and wNEAR token holders to earn staking rewards and maintain their liquidity to participate in DeFi protocols on NEAR and Aurora.
Users staking $NEAR and wNEAR with Meta Pool receive in exchange a NEP-141 standard token, stNEAR (staked NEAR).
stNEAR simultaneously accrues staking rewards and unlocks users’ liquidity enabling them to participate in DeFi activities (e.g. lending, farming, borrowing) on NEAR and Aurora.
Stake $NEAR on Meta Pool
~11% APY
Get stNEAR
Yield-bearing token
Go DeFi on NEAR & Aurora
More APY and more rewards
Meta Pool solves the problems associated with Proof-of-Stake networks staking: illiquidity, immovability and accessibility. Meta Pool also aims to distribute staking in multiple validators to improve censorship-resistance of the NEAR network.
With a TVL of $120 Million USD and growing, Meta Pool has become in just a few months a cornerstone element of the NEAR ecosystem, making it more decentralized and therefore more secure, as well as making $NEAR liquid.
In February 2022 Meta Pool has been successfully audited by BlockSec, confirming the implementation of the highest security standards.
For more information visit https://metapool.app.
