Hey guys! Those with us for the past 5 days have seen the HIGHLY SUCCESSFUL initial runs of our Lootbox contract! We have been distributing 350–360 “card packs” per day at prices of 40–50 MATIC worth of USDC, and the demand has been outstanding. None of our loot drops have taken longer than 30 minutes to sell out. So we feel that we have really hit on something amazing here.
First, let’s break down what this means for the farm’s finances. While Darkside Finance is operating, the Lootbox will run with USDC and DARK as payment tokens on an alternating basis. Therefore, making profit on lootbox runs creates a sustainable source of income that we can use to perform periodic DARK buybacks with no outside income infusions. This is something that almost no one else in the “yield farming” business can claim. With this source of recurring income, we have a sustainable method of creating our own DARK buyback power, while retaining the ability to replenish our supplies of prize rewards by accepting USDC for some runs.
Now, on to the amount. In the first 5 days of Lootbox operation, the operating profit for lootbox distribution has been over $31,000. This is the case because of several factors: 1) I minted Polypunks at a much cheaper price than their current “bottom 20 floor price,” which is what we use to value them in packs; 2) One day, MATIC went up in price between the peg time and actual sale; and 3) We are now minting our own NFTs, PolyPudgyPenguins, which we are valuing at 40 MATIC in Lootbox packs.
Therefore, we believe that our Lootbox is a win-win situation: card pack buyers receive extra value from any Polypunk value above “floor value,” as Polypunks are valued at floor price for pack pricing; we feel that users see the value in PolyPudgyPenguins, as they are incredibly cute and can be used as avatars or staked in our NFT pools; and the card pack buying experience itself is enjoyable for buyers.
The fact that we mint our own NFTs, create rarity through our Lootbox distribution mechanism, and allow staking creates value in a synergistic cycle, and we will be pursuing this strategy to make the maximum amount of profit we can for both the buyback wallet and our standard fee split (50% CZDiamond/50% DARK).
We also have many other sources of recurring income coming! The completion of the interface for our OTC engine will see it released soon. We also have the first version of our slot machine code, and poker is next! Many great things coming. Stay tuned!