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The $FIGHT LP (liquidity providing) is not much different than the native $FIGHT token. Both token utilities ride in parallel, however this form of the token is not utilized in play-to-earn, rather staking.
$FIGHT LP is one token compromised of two variations: $FIGHT and $BUSD (or equivalent). When providing equal parts (price matched) of the tokens on Pancake Swap, liquidity is added to the pool where $FIGHT is actively traded. At any time, LP tokens can be withdrawn to claim the original assets back.
To further understand this concept, here's how it works in Crypto Fight Club:
- 1.Deposit equivalent amounts of $FIGHT and $BUSD on the token pair in Pancake Swap
- 2.Receive $FIGHT-LP in return
- 3.Stake $FIGHT-LP tokens inside of NFT avatars
- 4.Receive a higher APY in $FIGHT from the inflation pool (80% of the annual inflation)
In other cases, LP tokens can be used to yield different assets. For example, Pancake Swap hosts "LP Farms" and "Syrup Pool" campaigns. Providing the above-mentioned equal parts of liquidity in the desired token pair, participants can earn $CAKE in return for a limited amount of time. This is great for a business aiming to build up their reserves, however, there is a caveat.
Anyone can participate in these pools (and a lot do). The more participants and liquidity provided, the APY in $CAKE is swiftly depleted and returns are not as high as they were in the first few hours or days. Also, participants can be exposed to impermanent loss when actively partaking in these LP campaigns.
In Crypto Fight Club, a larger pool from the allocated inflation incentivizes NFT holders to stake LP for higher APYs. Because this specific pool is split in majority interest and there are limited runs of NFT avatars, the yield in $FIGHT is far greater and consistent than both LP campaigns and staking native $FIGHT tokens.
A huge milestone in Crypto Fight Club was reached 72 days after the NFT launch. Verifiable stats below as follows (and growing):
Milestone Reached: $FIGHT Stats March 08, 2022
Crypto Fight Club NFTs launched on December 26th, 2021 have showcased steady growth in less than 3 months. Numbers continue to grow on a daily basis with new and existing participants utilizing the staking product alone. LP staking remains in the lead with a larger TVL (Total Value Locked) and higher payout.