spNFT

What is an spNFT?

Staked position NFTs or "spNFTs" are Yield-bearing Non-Fungible assets that offer an extra layer of composability for greater capital efficiency. How can I view spNFTs?

How can I view spNFTs?

spNFTs are NFTs whose data represent a staked position rather than a visual element. In other words, spNFTs are completely technical and do not have art associated with them.

What is the purpose of creating an LP position?

Creating an LP position means you're adding liquidity to the protocol. This LP position transforms into a staked position NFT (spNFT) which functions similarly to staking your positions in a yield farm. This staked position can be locked, managed in various ways, yield-boosted with xTORCH, and deposited into a Nitro pool for additional rewards.

What distinguishes a yield-bearing position from a non-yield-bearing one?

A position automatically becomes yield-bearing and earns a yield if it corresponds to an incentivized pair on Hercules. Non-yield-bearing positions however can be leveraged by anyone and are directly rewarded through a Nitro pool.

What differentiates stable pairs from volatile pairs?

Stable pairs consist of stablecoins which typically maintain a stable price. Volatile pairs however are composed of assets whose values shift with the volatility of the general market.

How can I maximize my position's APR?

Users can maximize yields by locking LP, yield-boosting, and participating in a Nitro pool.

What should I do to withdraw my funds from the protocol?

You can withdraw funds by withdrawing your staked position and unbinding the LP token.

What advantages does locking my position offer?

Locking a yield-bearing position gives additional rewards in proportion to the lock duration. Each incentivized pair has its own specifications regarding this aspect.

Will locking my position (spNFT) also lock my pending rewards?

Locking your position (spNFT) does not lock pending rewards. Users can harvest rewards at any time.

Can I renew my locked position whenever I wish?

Yes. Users can renew locked positions at any time, so long as the new lock duration matches or exceeds the remaining duration of the existing lock.

Can I transfer my position to another person's address using the transfer function?

Yes. Transferring your position (spNFT) to another address will make that address the new owner of the position. The holder of the spNFT is the holder of the position.

What is the function of the split feature?

The split feature allows you to divide an existing position while maintaining the original settings, such as the lock duration for example.

Why would I lock my position for more than six months if the maximum lock bonus is already achieved within this period?

While the maximum lock bonus is technically achieved when setting the lock for six months, some protocols may incentivize longer lock durations through Nitro pools which would promote incentives for longer durations.

What is the purpose of transforming a single asset into a staked position when there are no pools to earn yield from?

Depending on the specific Nitro pool, only a single asset spNFT may need to be staked in that particular instance.