Infinity Skies: How to work your ISKY tokens harder
Primer: Infinity Skies is a blockchain game where players can build, socialise, trade and go on adventures. The native token of Infinity Skies is ISKY. This article highlights the different ways that one can do to make your ISKY tokens work harder.
Introduction
Infinity Skies is such a cool blockchain game so you bought their native ISKY tokens from the different launchpads. The game is not launched yet (but the castle building demo is already live) and there is no actual usage for the ISKY tokens right now. While waiting for the game to go live, your ISKY tokens in your wallet are sitting idly waiting for you to do something. What are you going to do?
There are two ways you can make your ISKY tokens work a little harder. And the 2 different ways have their own risk-reward profile. Let’s find out more about them.
For the Passive HODLers: Claim Pool
TL;DR
• Earn more ISKY by simply HODLing it in your wallet
• Risk of Impermanent losses: Nil
• Yield: Likely low
Each ISKY transaction has a recycle feature of 5%. This is sort of a tax but the bulk of this will be returned back to the community. Having a tax of 5% is also the reason why the slippage for any transaction in ISKY has to be manually set to be at least 5%, otherwise the transaction will fail. 1.5% out of this 5% will be distributed back to the Claim Pool and ultimately channelled back to the community.
When the countdown timer reaches zero every week, whoever is first to press the DISTRIBUTE button will get 1% of the current balance. This is on a first-come-first-served basis and it’s really hard to be the first to do this, so I wouldn’t even try. Most likely, the transactions will be pending and you’ll just be spending more gas to speed up or cancel. But if you’re feeling lucky, go ahead and try it.
After the DISTRIBUTE button is pressed, the remaining balance (after the 1% given to the distributor) will be given proportionately to anyone holding ISKY tokens in their wallet. The amount of ISKY distributed is proportional to the amount of ISKY held in your wallet over the circulating ISKY tokens. Simply put, the more ISKY tokens you have in your wallet (unstaked and not locked up in any mines or LP), the larger the proportion of the ISKY tokens you’ll receive.
It’s important to note that Dev and exchange wallets are blacklisted, hence they are not eligible to receive any distribution from the Claim Pool.
What’s the yield like?
This is the Claim Pool’s first-ever claim. To find the yield, we can calculate the Amount (58,078.87) as a percentage of the Applicable Supplies (5,201,119.13). This works out to be 1.12% in one week, which gives an APY of 58%. Crazy right?
This is Claim Pool 6. You can observe that the balance to be distributed had dropped from about 58k to 36k. This is expected as the first week is where the TGE of ISKY happened so there’s a lot more hype and a lot more transactions. This contributed to the higher Claim Pool in the first week. The yield for Claim Pool 6 turns out to be 0.59% per week or an APY of 31%.
Going forward, the actual yield from the Claim Pool will depend on how successful the tokenomics of ISKY is at driving demand for the token, burning them from the supply, or both. Here’s a graph showing the APY (%) for the different Claim Pools so far.
I think until the game is up and running, a realistic expectation for the yield should be nearer to 2% APY. Not fantastic, but there’s no risk of any impermanent losses here. It’s great for people who are just gamers and not investors. Definitely not for the degens.
For the Crystal Lovers: Quicksilver Mines
TL;DR
• Earn IQSF that can be exchanged for in-game NFTs by staking in mines
• Risk of Impermanent losses: High for double-tokens staking, Nil for single-token staking
• Yield: Unknown
Quicksilver Fragments (IQSF) are ERC-20 tokens that can be earned by playing the adventure mode of the game, or from LP staking rewards like in the Quicksilver Mines. Every 1000 IQSF can be exchanged for 1 Silver Crystal. There are other types of fragments, ranging from Bronze to Gold, each with its own ways of obtaining them. Bronze fragments are the only ones that can be obtained from feasts, which is a mechanism of the social aspect of the game tied intrinsically with the castle building part. IQSF remains the only fragment to reward LP stakers.
After fusing to form the Crystals, what can they be used for?
The Silver Crystals are ERC-1155 tokens that can be fused to form in-game NFTs of every type, category or subcategory of the following rarities with the following drop-chances:
The main difference between the 3 different Crystals is the drop chances of getting the top tier rarity NFTs. For Gold Crystal, there is a 0.1% chance of getting Divine (the rarest) and 0.9% of getting Legendary. For Silver Crystal, there is a 0.1% chance of getting Legendary and a 4.4% chance of getting Epic. For Bronze, there is a 1% chance of getting Epic and a 10% chance of getting Rare.
There are two observations:
You can NEVER get a Divine rarity NFT from a Silver Crystal, nor can you EVER get a Legendary rarity NFT from a Bronze Crystal. Getting Gold Crystal will give you a small but non-zero chance of getting Divine NFTs.
Getting a Silver Crystal does not mean you’re definitely going to get a lousier NFT than from a Gold Crystal. It really depends on your luck. Based on the drop chances, you’re most likely to get a Common rarity NFT from a Gold Crystal.
Since Infinity Skies is using the Chainlink VRF Oracles for their random numbers generator (RNG) logic, maybe buying some LINK tokens and whispering a prayer to the RNG God might help lol
There is a cap to the funding available to the mines and a time limit in which the mines are opened. Once the mines are fully funded or the countdown timer reaches 0 (whichever comes earlier), they will be closed. The tokens staked inside will be locked for the duration of the period and cannot be taken out. IQSF rewards will begin to accrue immediately and users can claim them anytime.
There are two types of Quicksilver Mines:
• Single-token staking
• Double-tokens staking
Single-token staking
This comes in 1, 2 and 3 months. The longer the time frame, the greater the cap and the better the rewards will be. Here’s a quick summary of the rewards for the different locking periods of the mines:
3 months: 100 ISKY yields 1000 IQSF
2 months: 200 ISKY yields 1000 IQSF
1 month: 400 ISKY yields 1000 IQSF
Double-token staking
To participate in this mine, you will first have to acquire the USDC-ISKY LP tokens from QuickSwap in a 50-50 split. Then the LP tokens can be deposited in the double-tokens staking mines. This comes in 3, 6 and 12 months. Again, the longer the time frame of the lockup, the greater the max funding allowed in each mine and the greater the IQSF rewards.
Conclusion
Personally, I think ISKY is very volatile. To LP with a stablecoin USDC will mean that the impermanent loss (IL) might be a consideration that cannot be ignored. Here’s a quick guide on the IL based on a 50-50 pool (like QuickSwap):
If ISKY 2x in price, IL = 5.7%
If ISKY 3x in price, IL = 13.4%
If ISKY 4x in price, IL = 20.0%
If ISKY 10x in price, IL = 42.5%
The yield for Quicksilver Mines is a huge unknown. There’s no market for IQSF yet, nor for the NFTs that the fused Silver Crystals can turn into. As such, doing a double-token LP might be too much of a gamble in the dark. I will much prefer the single-stake Quicksilver mine with just ISKY tokens. I think this is what most people think too because the 3-month single-token staking mine is the first one to get filled. This is also where I put my ISKY tokens.
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