Our first priority is to continue to expand our range of insured farms to include more BSC projects. This will help to grow our community and increase our TVL. As the TVL grows, NUTS become more valuable and Squirrel can offer more insurance coverage to users.
Another priority of ours is to offer more NUTS collateral per farm as insurance. As the market-cap & liquidity of NUTS increase, Squirrel is able to offer more insurance per farm. Increasing the max compensation split between farmers can further increase our TVL as it becomes more attractive to new users. Higher TVL brings in more fees which means more value for NUTS. Currently insurance fees are used to buy back NUTS and distributed to the NUTS farm. The long term goal is to burn some of these NUTS instead. With a high enough TVL, NUTS can become deflationary with an implicit hardcap!
Currently Squirrel charges a 20% yield fee on insured farms which goes to buyback NUTS and is distributed to the NUTS Farm. To people unfamiliar with where NUTS come from “stake NUTS to earn NUTS” looks much like any other farm. So we have conceptualized a new approach which we believe looks more attractive to stakers, increases liquidity of NUTS and also increases price stability. In the future, only half of the insurance fees will buyback NUTS and the other half will remain as BNB. This then will get combined into an LP & is distributed to the NUTS stakers. So now NUTS earns LP over time (which is indirectly both a BNB & NUTS distribution) and also allows you to compound into the NUTS LP farm for even higher APR 💪 See below!
Once the inflation rate of NUTS approaches zero we hope to use NUTS as a governance token. This will allow NUT holders to make proposals and vote on them. One such example could be voting on the amount of insurance fees used to buyback and burn NUTS, allowing holders to have a direct say in the supply controls. Any other proposals could be made and voted on as well.
To make the Squirrel more attractive to users, we are considering launching some Farms with lower insurance rates for well known / low risk projects. This should help to increase our TVL, liquidity and value of NUTS! At the same time, Squirrel can launch Farms for newer 'high risk' projects with higher insurance rates.
In order to maximize growth we need to make improvements so that NUTS are a desirable token rather than just a token people farm. We are currently brainstorming ideas such as loyalty bonus’s for farmers, NUTS lockups, referral schemes as well as premium insurance offerings. Finally another area we would like to explore is games (such as lottery or other dapps that add additional usecases for NUTS) as well as incorporating NFTS into some of the ideas above.
All in all, there are plenty of things to be yet explored & this project is still in its infancy. We are hard at work building the features above, but if you have any suggestions or questions - please let us know via our Discord or Telegram! We would love to hear from you!