DEFI Kingdoms

Introduction

DeFi Kingdoms is a cross-chain, play-to-earn game built on a strong DeFi protocol with plans to become a fully-fledged MMORPG in later phases of the Roadmap. The game features DEXs, liquidity pool opportunities, and a market of rare, utility-driven NFTs, which all together create a beautiful, immersive online world in the incredibly nostalgic form of fantasy pixel art. DeFi Kingdoms currently lives on the Harmony and DFK Chain blockchains.

The Motivation for Creating DeFi Kingdoms

As big fans of the innovation happening in DeFi and in blockchain technology in general, our team had been waiting for a DeFi project to truly embrace the full potential of the blockchain in game form. Trading, returns, and moonshots are undoubtedly fun, but why couldn't it feel more like a game? Why couldn't we build an operation and level it up to increase returns? Why couldn't we do daily quests and collect rare NFTs that actually augment and impact the rewards and returns? Once we decided it needed to be built, we jumped headfirst into production, and DeFi Kingdoms was born!

A Dedicated Team and a Shared Vision

We wanted a DEX that allows holders to not just hold a monetary token, but own a token that is usable, valuable, and gives back in many fun ways. We’ve packaged DeFi elements into a fun and synergistic game, providing JEWEL and CRYSTAL token holders with an engaging and meaningful experience. We’re here for the long term, planning features for phases soon to come–and some a little further down the road–to set this community and project up for maximum success.

Power Tokens

JEWEL

When DeFi Kingdoms: Serendale launched on Harmony, the JEWEL token launched alongside it. Unlike the average crypto token, JEWEL acts as the main token of value in a metaverse game, giving it utility above and beyond that of a regular coin. JEWEL can be used to purchase Hero NFTs, which can themselves be used to earn JEWEL and other rewards. JEWEL can also be combined with existing Heroes and other items to mint new Heroes, and be swapped through the DEX for other tokens and in-game items. This is all in addition to fee sharing opportunities, liquidity pooling, and governance rights.

CRYSTAL

With the expansion of DeFi Kingdoms: Crystalvale onto the DFK Chain we created a new power token, CRYSTAL. CRYSTAL fills the same roles that JEWEL does in Serendale, but within Crystalvale. It can be spent to purchase and mint Hero NFTs, swapped on the in-game DEX, staked for fee sharing, pooled for liquidity, and applied to applicable governance votes. he total supply of CRYSTAL is one-fourth that of JEWEL.

Transactions & Rewards

Unless otherwise specified throughout these documents, the JEWEL or CRYSTAL fees, as applicable, from every in-game transaction are apportioned to the applicable wallets for each realm as follows:

• 1% - Burned

• 10% - Sent to the Jeweler to reward xJEWEL/xCRYSTAL holders

• 30% - Sent to the Quest Rewards Fund

• 25% - Sent to the Development Fund, to pay for future game development and bounties

• 17% - Sent to the Marketing Fund, to pay for advertising, airdrops, etc

• 17% - Sent to the Founders Fund, to pay milestone bonuses to the dev team

JEWEL and CRYSTAL are the lifeblood of our project and have features that provide players the opportunity to earn while playing rather than buying games and subscriptions with no potential to recoup costs spent. In DeFi Kingdoms, good gameplay decisions and a little luck have the potential to reward players with actual crypto tokens while they play a game they enjoy.

Utility

Since both JEWEL and CRYSTAL share much of the same utility (for example, they can both be used to mint new NFTs), the value of the tokens is linked. This provides exciting arbitrage opportunities across blockchains and ensures that cross-chain expansion does not lead to a loss of value for older tokens. Future expansions are expected to follow the same strategy.

Additionally, JEWEL is used for gas fees on the DFK Chain, where the gameplay transactions for Crystalvale take place.

Specific information about each token can be found on the JEWEL Token and CRYSTAL Token pages and issuance schedules for each can be found on the JEWEL Gardens and Ice Gardens pages.

Additionally, each token may be staked at the Jeweler for governance tokens, and used to cast votes on major decisions when such votes are called. More information on governance votes can be found on the Jeweler page.

Decentralized Exchange

DeFi Kingdoms currently has two decentralized exchanges that use the tried-and-true UniswapV2 Protocol. DeFi Kingdoms: Serendale's DEX trades in JEWEL, ONE, and a host of tokens on Harmony, while DeFi Kingdoms: Crystalvale's DEX trades in CRYSTAL, AVAX, and a variety of tokens on DFK Chain, our Avalanche sub-net. Trading is one of the main reasons we are drawn to blockchain technology and we want to make the experience fun and enjoyable for all within the realms.

From the Marketplace, you can swap tokens at the current exchange rates. You can also become a liquidity provider by adding liquidity to any token pools you’d like. These will earn you fees any time anyone trades those tokens. Additionally, theLP tokens for certain incentivized token pairings can also earn JEWEL or CRYSTAL rewards when staked in the Gardens.

The Jeweler

The Jeweler accepts "deposits" of power tokens, allowing the player to participate in fee sharing and to cast governance votes in relation to their deposited power tokens. The in-game menus break this down to their simplest form, but more complex mechanics are happening behind the scenes.

Deposit Basics

Players can choose to deposit any amount of the realm's power token with the Jeweler. When they do so, those tokens are removed from their wallet and the player receives another token in its place, xJEWEL or xCRYSTAL, as applicable.

The balance of power tokens on deposit with the Jeweler can be seen in the Jeweler's main menu. Don't forget that Jewelers only accept the token of their realm, so the Jeweler in Serendale won't take CRYSTAL, and the Jeweler in Crystalvale won't take JEWEL.

The Jeweler takes a portion of fees collected in-game as rewards for depositors. This includes 33.33% of collected fees from the DEX and 10% of power token fees from in-game transactions such as, among others, Hero summons, Pet incubations, Hero and Pet sales, and Hero meditations. These rewards are apportioned by each player's share of the total deposit float. Because the amount of tokens coming into this reward pool fluctuates based on transaction volume, and because each player's share fluctuates with deposits and withdrawals, the Jeweler does not have a fixed APR. Players can deposit or withdraw at any time, in any amount, with no withdrawal fees. When they withdraw, all rewards are withdrawn as well and are fully unlocked and instantly available.

Additionally, players can see their xJEWEL or xCRYSTAL balance with the Jeweler and in their wallet as long as they have added the applicable contract to their wallet. These tokens are explained in greater detail below, but it is important to note that they are the governance token of DeFi Kingdoms and of each realm. When governance votes are called, players may vote with their xJEWEL or xCRYSTAL shares, as appropriate, if they wish.

Tokens and Rewards

Behind the scenes, a "deposit" is actually a swap of the power token of the realm to the governance token of the realm. By adding the contract address of xJEWEL or xCRYSTAL to their wallet, players can see that they actually hold that token after a deposit. Then, when they "withdraw" from the Jeweler, they trade that token back for the power token.

This swapping mechanism is the key to reward allocation. Each pair of tokens has a ratio, which can be seen when speaking to the Jeweler. 1 xJEWEL might be worth 1.6 JEWEL, as an example. Thus, when a player makes a deposit, the player's JEWEL are swapped at that rate for xJEWEL. During the time that the player holds xJEWEL, fees are collected throughout the game, and the non-JEWEL tokens collected are swapped for JEWEL. Thus, the JEWEL value of the xJEWEL pool grows slightly as fees continue to feed into it.

Over time, this increases the ratio between the two tokens. When the player withdraws, they swap back the xJEWEL tokens for JEWEL. The longer they've held xJEWEL, the more the ratio will have increased, and therefore the more JEWEL they receive back when making this swap. The difference between the amount of JEWEL that they deposited and the amount that they withdrew (with the amount of xJEWEL held remaining fixed) is the reward received by the player.

This mechanism is consistent across both Serendale and Crystalvale.

Governance Votes

Like many DeFi projects, the developers of DeFi Kingdoms may call for governance votes to empower token holders to make decisions about the direction of the project. Governance votes might determine the inclusion of a new token in incentivized pools, the retirement of a token from the pools, or a policy change that impacts token holders.

When this happens, the vote is announced on Discord and through the other DeFi Kingdoms social media accounts. xToken holders can visit the governance page (different for each vote), where they can connect their wallet and cast a number of votes equal to the number of tokens held.

Governance votes allow the holders of the token to have an active voice in decision-making, and the developers view this as a key component to a successful DeFi project.

Please note that in addition to xToken holders being able to vote, holders of Hero NFTs and Land NFTs also have voting rights. As of 5/31/22, Hero NFTs have the voting power of 10 xTokens, and Land NFTs have the voting power of 100 xTokens.

The Gardens

In each realm, the Gardens is a place to stake liquidity pool tokens (referred to herein as “LP tokens”) to receive a share of power token emissions. In the JEWEL gardens of Serendale, players can stake to receive JEWEL emissions, while in the Ice Gardens of Crystalvale, CRYSTAL emissions are on offer for those who stake.

Additionally, players can assign their Hero NFTs to work in their gardens through gardening quests. Those Heroes earn additional rewards in JEWEL or CRYSTAL based on the skill of the Hero and the amount of LP tokens staked in the garden they're tending, so players who stake LP tokens in the Gardens and quest Heroes in those same gardens have synergistic utility for their NFTs right away.

Epochs and Emissions

Each power token has its own emissions schedule. Generally speaking, emissions per minute are higher when the token launches, and decrease over time. This decrease in emissions is not linear, so it is important to review the emissions schedules for each token in its related Gardens subpage.

Emissions are governed by periods of time called Epochs. Each token starts in Epoch 1 on launch, which has the highest emission rate. With each Epoch, the rate may change or may remain consistent, as shown in each token's chart on its Gardens page.

Epochs on the Harmony chain are linked to block speed, so JEWEL emissions are tied to the speed of the Harmony chain and the length of each Epoch (ideally one week) may vary if the chain experiences slowdowns.

On DFK Chain, the Epochs are based on timestamps and last exactly one week.

Allocations and Rewards

The total amount of each power token emitted per minute can be determined by Epoch, but those tokens have to go somewhere! Each individual garden (representing a specific incentivized LP pair) is assigned an allocation of the total tokens minted. The allocation for each incentivized pool can be viewed in the Seed Box on each realm. Based on the current Epoch, its emission rate, and the allocation for a specific pool, players can determine how many tokens will be emitted to that pool every second, minute, or day. From there, the pool divides those tokens among all of the players staking LP tokens in that pool proportional to their share of the total pool and distributes them as rewards. When making these calculations it is imperative to remember that players can enter or leave liquidity pools freely, so each player's share is constantly in flux as liquidity is added or removed.

Locking Model

To balance the high emissions rates in earlier Epochs and to provide price stability, our tokenomics includes a locking model on Gardens rewards. Until a certain point in each emission schedule, only a portion of the tokens grown, harvested, and distributed as Gardens rewards to LP token stakers is unlocked. Once claimed, these unlocked reward tokens transfer directly into the player’s wallet and are immediately usable. However, a portion of Gardens rewards are also locked deep underground. These rewards are allocated to the player's wallet, but cannot be accessed or used in any way until they become unlocked.

For each token, starting in Epoch 1, 5% of claimed rewards are unlocked while 95% are locked. Each Epoch, the percentage of claimed rewards that are unlocked increases by 2%, so in Epoch 2, 7% are unlocked and 93% are locked, and so on. It is important to note that these percentages are based on the Epoch at the time that the player chooses to claim, not when the rewards were allocated. If a player chooses not to claim right away, the percentage of tokens that will be unlocked that they will be able to claim increases by 2% each Epoch. Once a player does claim, however, the remainder of the claimed rewards, which are locked, remain locked until the end of Epoch 51, at which point they begin unlocking ratably over the next 52 Epochs, unless unlocked through other means, such as the Mining profession quest. After Epoch 51, no further locking will occur and all newly generated rewards will be fully unlocked immediately.

Locking Model - Early Unlocking with Hero NFTs

One of the most unique features of DeFi Kingdoms is our Hero NFTs that provide true in-game utility. The Mining profession is one such use-case. Players who have locked rewards can send their Heroes on mining quests to unlock some of those tokens early, granting access to locked rewards before their natural unlock.

Not all Heroes will have the same level of proficiency in mining, so it is important to learn about the various stats that Heroes use and how each profession works when looking to buy and use them. You can find more details about that in the Profession Quests section of the documents.

Garden Staking Deposit and Withdrawal Fees

There are no deposit fees for staking LP tokens in the Gardens. To protect against flash loans and pump and dumps, we have implemented withdrawal fees for withdrawing staked LP tokens. The first deposit and every subsequent withdrawal resets the fee timer. The withdrawal fees are listed below:

• 0.01% fee if a user withdraws after 4 Epochs

• 0.25% fee if a user withdraws after 2 Epochs but before 4 Epochs

• 0.5% fee if a user withdraws after 5 days but before 2 Epochs

• 1% fee if a user withdraws under 5 days. *

• 2% fee if a user withdraws under 3 days. *

• 4% fee if a user withdraws under 24 hours. *

• 8% fee if a user withdraws under 1 hour. *

• 25% slashing fee if a user withdraws during the same block.

*In the case of JEWEL and Harmony, days/hours listed assume a 2 seconds per block speed during such period and will depend on blockchain speed.

Getting Started

DeFi Kingdoms is a browser-based game, so all you need to set up your system is a compatible browser with the MetaMask extension installed.

The DeFi Kingdoms tutorial walks you through downloading a compatible browser and installing the MetaMask extension.

Additionally, you will need Harmony ONE tokens for gas fees, and to convert to JEWEL within the game. The tutorial also gives further info on purchasing Harmony ONE tokens. In general, you will need to find an exchange like Binance, Crypto.com, or Kucoin that trades ONE, and then you will need to send the ONE to your MetaMask wallet.

Once you have your browser and MetaMask set up, and you have some Harmony ONE in your wallet, you will be able to enter the game. You can take a tour of the Kingdoms to learn more about the game, and explore these documents for in-depth information about a multitude of topics.

As you explore, you will probably have plenty of questions. The Gameplay section offers a lot of information, and you may find what you need in the FAQ section as well. Additionally, the best place for real-time discussion and support is in our Discord server. Links to this and our other social media sites can be found on our social media hub.