Charged Particles Achieves NFT Smart Wallet Liquidity Mining, Launches Lepton Functionality

Published in

Charged Particles

7 min readSep 7, 2023

After a lot of hard work, we are incredibly proud to announce that we have simultaneously achieved Liquidity Mining within NFT Smart Wallets and the powerful yield-boosting functionality of Lepton NFTs.

This article will break down what that means, how these new functionalities work hand-in-hand, and the wider implications of these advancements for NFT Smart Wallets and Token Bound Accounts.

LET’S START WITH THE BASICS

If you are recently learning about NFT Smart Wallets, and you’d like to get a better sense of how they all work, this article is a great place to get started but, to keep it simple:

Your NFT can hold it’s own tokens — ERC-20s, 1155s, and 721s.

With Charged Particles, however, you can do much more than just that. Using our protocol, there are some advanced features that not only give you more control over NFT Smart Wallets, but also greater security than other unvetted implementations of standards.

For example, using Charged Particles you can

Time-lock Assets
This helps prevent rug pulls at the point of sale and allows for novel use-cases and mechanics for gaming, fashion, governance, community reward/loyalty programs, token vesting, trusts, and more.
Batch Deposit Assets
Do you want to deposit tokens into 10,000 NFTs all at the same time (think airdrops)? Charged Particles can do that.
Aave Integration
When you deposit Aave-supported assets such as USDC into your NFT, you can earn interest automatically. You read that right. Your NFT can earn interest.

And now, we’re taking Aave integration to the next level in a way that we believe will help shape the landscape of Token Bound Accounts — NFT Liquidity Mining.

SO WHAT DOES THAT MEAN?

Now, for the first time, when you are earning interest on an Aave-supported token (USDC, DAI, wBTC, and others) inside your NFT, YOU WILL ALSO EARN $IONX, the Charged Particles DAO governance token.

This means an effective boosted interest rate for all Aave tokens by way of our IONX token. And this is a model that could be applied to other yield sources, other token rewards, and other metrics.

Imagine earning in-game tokens based on how many quests you’ve completed. Complete a quest, receive a token inside your avatar, and use that as a data point to weigh how many of the in-game tokens your avatar is generating automatically inside itself — pretty neat. And that’s just one idea.

Our DeFi-focused Aave integration is just the tip of the iceberg for what nested tokens can be used for in the greater realm of digital identity.

HOW DOES IT WORK

As a feature of our open source and battle tested protocol, this novel function comes built-in to both our DApp as well as our SDK, making it an available tool for users and developers all over the ecosystem.

To see it in action and start earning boosted yield on your Aave position, go to wallet.charged.fi where the entire process is automated.

Simply choose an NFT with Smart Wallet integration that has been audited by Charged Particles DAO and deposit Aave-supported ERC-20 tokens (USDC, for example).

That’s all you have to do.

Our protocol will automatically send the USDC to Aave liquidity pools, return aUSDC to your NFT Smart Wallet, begin earning interest which you can claim on behalf of your NFT, and now also earn IONX.

This can be done with dozens of NFT contracts including Bored Apes, Rarible, SuperRare, etc. Want to add your existing smart contract to our allowlist? Join our discord and say hello in the platform questions channel.

But that’s not all. We have MORE ways to boost your yield.

1. Lepton NFTs
2. Liquidity-mining Early Adopters Program (LEAP)

WHAT ARE LEPTONS?

Charged Particles went live on ETH Mainnet on February x, 2021 — long before most folks were imagining the depth of use-cases that NFT Smart Wallets and Token Bound Accounts would enable. Since the beginning we’ve been talking about Leptons, a concept for a yield boosting NFT that would work hand-in-hand with our eventual Liquidity Mining functionality.

The concept was simple:

Earn interest with Aave, earn IONX by Liquidity Mining, and BOOST that IONX reward using Lepton NFTs.

It’s been a long road building an open-source tool kit for the community: deploying to Polygon, releasing our SDK for developers, other example.

Then the bear market hit, BUT WE KEPT BUILDING.

And In that time, the space has changed, so to meet the ecosystem where it is, some of the original calculations for Lepton NFTs have changed.

THE MATH MADE SIMPLE

This program applies to a number of different assets on both ETH and Polygon, so we’ll have a more in depth deep dive into the math in another article. Nonetheless, as a single example, if you deposit USDC into Aave v2 today (on Polygon), you will earn 1.72% APY on that deposit.

For every $1 of interest you earn, you will also earn ~4.3 IONX tokens if that deposit is done inside an NFT’s Smart Wallet.

That’s a a nearly 10% YEILD BOOST depending on market fluctuations that anyone can access for free using our protocol.

And now you can boost that yield even further using Lepton NFTs.

However there are ways to go even higher with your yield boosts. There are 6 Leptons that each have a different reward multiplier, and they can be combined. By putting three or more Leptons from different tiers into a single NFT, you can boost your IONX yields. Keep your eyes peeled for a separate article on the exact math behind it soon.

These 6 Lepton NFTs release in Tiers with each tier increasing in price as well as it’s yield-boost multiplier. We are currently on Tier 3. Once Tier 3 sells out, Tier 4 will unlock. This process repeats until Tier 6, the most valuable and highest boosting Leptons.

You can buy Leptons on our site here, or on the secondary market. Make sure to check contract addresses and stay wary of scammers! Be safe out there everybody!

If you want to learn more about Leptons and the base reward program you can visit our docs section where the programs are broken out in more detail as well as commonly asked questions — https://docs.charged.fi/charged-particles-protocol/liquidity-mining

THE LIQUIDITY-MINING EARLY ADOPTER PROGRAM (LEAP)

Keeping it quantum as always, today we are also beginning DAO discussions about “LEAP” — a program to help reward the earliest users of this new technology.

We will be measuring interaction with our protocol including actions such as nesting, time-locking, utilizing Leptons, and more. These data points may end up being used to weigh any airdrops that the DAO decides on.

How To Participate

Deposit more than $100 worth of assets inside an NFT.
Time-lock those assets.

Variables

Here are some variables that may weigh into the LEAP program:

Time-lock Liquidity Mining for 1 month
Time-lock Liquidity Mining for 3 months
Time-lock Liquidity Mining for 6 months
Time-lock Liquidity Mining for 12 months
Deposit 1 Lepton NFT
Deposit 3 Lepton NFTs
Deposit 6 Lepton NFTs
Held a Lepton NFT before June 30, 2023
Use IONX to participate in a governance vote
Provide Liquidity to IONX?
Others? Zealy?

WHAT’S NEXT?

As we continue to see an increase in NFT Smart Wallet integrations throughout the space, the team at Charged Particles and our incredible DAO community find ourselves well positioned to offer support for projects, platforms, protocols, and blockchains that want to explore these novel use-cases. And there are a LOT.

For years we have been dedicated to furthering this technology, and we are here to help. So, if you find yourself aligned with Web 3.0’s goals of decentralization, innovation, and cooperation, we want to build with you.

There is a lot more coming soon. Stay inspired.

About Charged Particles

Charged Particles is a protocol that allows users to deposit ERC-20, ERC-721, and ERC-1155 tokens into NFTs. A scarce NFT (e.g. Art, Collectible, Virtual Real Estate, In-Game Item, etc.) can now be transformed into a basket holding a number of other tokens. The Principal amount can be time-locked inside the NFT, and through integration with Aave’s aTokens, the programmable yield from these DeFi yield-generating assets is just a few clicks away.

Subscribe to our newsletter for DeFi news and resources

Applications of Charged Particles:

Stay in touch with Charged Particles