Decentralized finance (DeFi) Opium Protocol has launch staking incentives on Binance Smart Chain, which may have saved its token from the current market slump.
In an announcement on March 24, Opium Protocol stated that it was launching liquidity mining incentives on the Binance Smart Chain version of the 1inch exchange.
The new liquidity mining pool on BSC starts at midnight on March 25 at 00:01 UTC. It promises a whopping 1,000% plus annual percentage yield for OPIUM token holders.
More Migration to BSC
The Opium synthetic derivatives platform, launched in May 2020, allows users to create, settle, and trade decentralized derivatives on Ethereum. It launched the OPIUM governance token on Jan. 28, offering incentives to users that bring value to the ecosystem.
It’s one of the latest platforms to look towards Binance Smart Chain for faster and cheaper transactions. It will use a bridge developed by the cross-chain platform pNetwork. Ethereum and ERC-20 tokens can then be moved to BSC.
The liquidity pools will be on the 1inch exchange which deployed a BSC portal of its own on Feb. 25.
Farmers will need to convert their OPIUM tokens to pOPIUM through the pNetwork dApp before switching wallet networks to BSC. They can then stake the pOPIUM tokens in a liquidity pool, paired with BNB on the BSC version of 1inch.
At the time of press, the pool was reporting a whopping APY of 1,939% in pOPIUM. There were two other liquidity farms on the platform, one for OPIUM/USDT offering 56%, and one for SUSHI/ETH/OPIUM offering 217% APY.
The protocol operates a distribution solution called DR.OPIUM. This allocates Opium liquidity provider tokens to a vault from which users can always withdraw their earned tokens. Those that withdraw immediately will sacrifice some token earnings to those who continue holding in the vault. This is a theoretical disincentive to early withdrawals and selling on the markets.
OPIUM Price Outlook
DeFi related tokens are bleeding out today as crypto markets continue to correct, however, OPIUM was able to buck the trend for a bit. At the time of the announcement, OPIUM prices surged 23% from a little over $6 to top out at $7.40.
However, it has been pulled back into the maw during early morning trading — falling to a seven-day low of $5.85. OPIUM hit an all-time high of $22 on Feb. 4 but has not been able to recover since then.
In terms of liquidity, the DeFi protocol has a TVL of $6.3 million according to DeFiPulse.