In the past few months, Blur has taken the NFT space by storm, injecting ~$100 million worth of liquidity into the wallets of degens through its BLUR token drop and vaulting past OpenSea in total trading volumes. With another $300 million in tokens to be distributed in Season 2, Blur farming continues to be the meta for the foreseeable future.
But Blur farming is a dangerous game.
Whales dominate high volume collections, placing insurmountable bid walls before pulling them and dumping on unsuspecting bidders. Collectors are often forced to accept lower bids at a loss in hopes that the juice will be worth the squeeze. All part of the game, right?
Well, what if we told you there was a way to farm Blur points without getting rekt?
A pair of experienced, anon DeFi protocol developers came together to solve the problem of Blur farming risk. We wanted to create a collection with a stable and ascending floor to allow traders to safely bid, without fear of losing huge percentages from unstable floors and unpredictable spreads.
Our early designs focused on full collateralization, making the collection almost like a stablecoin. But stability isn’t enough; volume is also a requirement for a collection to earn Blur points. We wanted to build in enough game theory to create speculation and generate interest (and volume).
Finally, we had it.
We realized that we needed to develop a mint contract that both inherently increases in value and offers holders a guaranteed exit price. So we developed a pricing formula that steadily increases in price with each subsequent mint. But that’s nothing new or exciting – the innovation is that 100% of mint proceeds go to a trustlessly managed treasury that NFT holders can use to redeem their NFTs for ETH, at any time. And that redemption value ALSO steadily increases with each mint.
Let’s break down the formula a bit. The first mint costs 0.05 ETH. Each subsequent mint goes up in price by 0.0005. So by the 100th mint, the price is 0.104 ETH. By the 1,000th mint the price is 0.554 ETH and by the 10,000th mint (if it makes it that far), the price is 5.054 ETH.
This creates a steadily increasing cost, but what about the redemption value?
That too goes up in price. Redemption value is calculated by the total treasury balance divided by the total supply. Let’s say you minted early, for 0.2 ETH. By the time the mint price hits 0.5 ETH, the redeemable value will already be 0.277 ETH. Because it’s a fixed value of the average mint cost, the redemption value can only go up in price.
And that’s just the redeemable value. Due to the up-only pricing and redemption models and inherent Blur farming mechanics, we expect to see the secondary prices trading higher than the redemption value.
There’s also a built-in arbitrage system. If the secondary price of Blur Farmer exceeds the mint price, traders will mint. If the secondary price is lower than mint, traders will buy from secondary. The mint is open, public, and has no fixed supply cap. We see Blur Farmer as a grand DeFi/NFT experiment and we want to see how far the market takes it.
The mint and contract links will be published today (March 7th) around 22:00 UTC via Twitter and Discord. Do not trust any other sources! We will not be DMing any accounts.
In the UI, you can easily view the current treasury, mint price, mint increment, and redeemable value per token. Since mint prices are ascending, the contract includes a small overage buffer to ensure your transaction goes through. All excess ETH will be returned.
The UI also includes the burn function to redeem your Blur Farmer NFTs for ETH and a projection tool to see what the mint price and redemption floor will be (i.e. in 500 mints).
Blur Farmer is an experiment, a meme, and a game. Never over-leverage yourself when investing in crypto or NFTs.
If you want to join in on this experiment, join our community Discord and follow us on Twitter. This is only the beginning. We have a lot of novel ideas for Blur Farmer and will continuously look for ways to drive incremental value to holders.