Minting

What is Minting?

Minting is the secondary value accrual strategy of Neverland. It allows Neverland to acquire its own liquidity and other reserve assets such as KUSDT-KDAI by selling HOOK at a discount in exchange for these assets. The protocol quotes the minter with terms such as the mint price, the amount of HOOK tokens entitled to the minter, and the vesting term. The minter can claim some of the rewards (HOOK tokens) as they vest, and at the end of the vesting term, the full amount will be claimable.

Minting is an active, short-term strategy. The price discovery mechanism of the secondary mint market renders mint discounts more or less unpredictable. Therefore minting is considered a more active investment strategy that has to be monitored constantly in order to be more profitable as compared to staking.

Minting allows Neverland to accumulate its own liquidity. We call our own liquidity POL. More POL ensures there is always locked exit liquidity in our trading pools to facilitate market operations and protect token holders. Since Neverland becomes its own market, on top of additional certainty for HOOK investors, the protocol accrues more and more revenue from LP rewards bolstering our treasury.