After reading this article, you will find out how you can trade on the world’s most popular Binance exchange without any commissions at all and at the same time have additional passive income. This is exclusive but rather intricate information, so please be patient and let’s dive deeper.

The platform we will talk about is Nominex.

Previously, it was just a centralized exchange, but now it is a whole ecosystem that has already brought several unique products to the market, including ones in the currently popular DeFi direction.

What is Farming in a nutshell

For an average person, DeFi farming is quite a difficult notion to understand.

But in this article, we will crack this nut effortlessly.

There are decentralized exchanges like Uniswap or PancakeSwap. They work entirely on smart contracts. And to change one coin for another in these exchanges, you need the smart contract to store a sufficient number of both coins.

This storage of two coins for a trading pair in a smart contract is called a liquidity pool. And the more coins are injected into this liquidity pool, the more favorable prices you can sell or buy coins through this liquidity pool. In fact, a pool of liquidity in decentralized exchanges is a DOM (Depth Of Market) in centralized exchanges.

Farming Steps

Let’s look at the steps using the NMX-USDT liquidity pool as an example.

• First off, equal proportions of NMX and USDT coins are sent to the liquidity pool.
• In return, the liquidity pool sends you special liquidity pool tokens (LP tokens). This is a kind of deposit agreement, which will, later on, allow you to send the tokens of the liquidity pool back to the liquidity pool so that it returns the funds invested back to you.
• Next, you send the received LP tokens to another smart contract, which distributes NMX tokens in accordance to your share of LP tokens in the pool, which is essentially called farming. This reward in the form of NMX tokens is the motivation to fund the pool with liquidity so that other people can trade at better prices.

How is farming related to DeFi (decentralized finance) technology?

Everything here is based on smart contracts. No one controls either the liquidity pool or the process of distributing tokens through farming. So, the funds that you send to the liquidity pool are not sent to the Nominex exchange and not to the wallets that it controls, but to a smart contract that has been audited for security by Alexey Makeev, unhash.io representative. From this smart contract you can successfully withdraw your funds back at any time.

Concerning token allocation

• The process of farming will last for 72 years with healthy, deflationary tokenomics on the Binance Smart Chain blockchain, which ensures faster transaction speed and the lowest fees on the market.
• During this time, 200 million NMX tokens will be distributed
• NMX is a BEP-20 token. The current price of NMX token is 24$
• The liquidity pool is hosted on the well-established decentralized exchange PancakeSwap.
• Obviously, the pair of NMX and USDT tokens required for the liquidity pool must be in BEP-20 format.

The annual profitability for farming in NMX tokens is currently about 190% per annum with weekly reinvestment.

The yield is calculated as the dollar equivalent of the farmed NMX tokens for the year in relation to the funds invested into the liquidity pool. But at any time a user can withdraw both the farmed tokens and the total amount of invested funds from the liquidity pool.

There is only one risk and that is if the price of the NMX token begins to fall, as in general, in any other coin. Then a user might run into impermanent loss.

But let’s look at the price chart of the NMX token

The token was launched on February 25, 2021 and since then has shown tremendous resilience over time, unlike most other launched projects.

While the entire crypto market underwent a correction, the NMX token was doing great however with time its price went down due to reduced funds in the liquidity pools. The secret of this result lies precisely in the utility of the farming process, which we will now consider.

Nominex is the first centralized exchange to integrate DeFi into a centralized product in such an elegant and efficient way.

The idea is as follows:

• Depending on the amount of funds that you put in the liquidity pool for farming, Nominex credits you with a certain level inside the Nominex
• The higher your level, the more discounts on trading commissions within the exchange and the higher the affiliate program rewards.
• For instance, if you put 10K dollars into farming, then you are assigned a maximum level that allows you to trade with zero commissions, that is, completely free.
• Moreover, the maximum level allows you to receive up to 40% every day from the farmed NMX tokens by your referrals through the affiliate program. This is another unique feature called Team Farming which is implemented in Nominex and nowhere else

Nominex Levels

At MAX level, the exchange allows you to trade completely without commissions and allows you to receive the highest rewards under the referral program from all people in the partner team, both for farming and for trading.

Affiliate program

Next, let’s focus on the affiliate program because the model of this affiliate program is unique for both farming and the exchange.

If a user constantly shares the referral link to his friends, in the nearest future he will be surprised by the increase in the size of the team. The farming rewards will be received from people a user doesn’t even know about. Thanks to the binary model, not only those who have registered using the referral link, but also all the people down the chain fall into the team. And as mentioned before bonuses are received from all of them.

The essence of a binary affiliate program is that a user earns from the weak team. If you see that your strong team is already powerful, then your task is to develop the weak one. To do that, just flip the switch in the “my referral tree” tab so that all subsequent direct referrals go to the weak team.

Let’s briefly repeat how to make money on the affiliate program:

• Up to 20% of all tokens farmed by your direct referrals at the maximum level. Even if you have nothing on a weak team at all.
• 20% from all farmed tokens in total by all people from a weak team.

In addition, don’t forget about 200% per annum from regular personal farming, where you don’t need to invite anyone to register using your referral link.

Moreover, Nominex figured out how to motivate people to farm for as long as possible – the profitability from farming over time can be increased up to 10 times.

At first glance, the affiliate program with an infinite number of levels looks a lot like a pyramid scheme. But in reality, NMX tokens are distributed on the market through farming mechanics according to a strict schedule. When only a fixed number of tokens, prescribed in the smart contract algorithm, can be released on the market every day. This is achieved through the principle of proportionality of the distribution of tokens among all participants under the affiliate program.

Taking into account the growth in the number of farming participants and Nominex users, there is an increasing demand for NMX tokens with a fixed supply. According to the laws of economics, that usually leads to an increase in the price of an asset.

The weekly pools are growing and will continue to grow during the first year.

They will continue to grow until a decline that will continue for 70 years. This essentially imitates the process of Bitcoin halving.

Distribution follows a strict schedule. And now the daily pool is already 11 000 NMX tokens. During the first 15 months, the weekly pool will gradually increase by 4% every week. Farming will reach 17 000 NMX per day in 15 months. In other words, this is the phase of growth in the number of farming participants, for which a sufficient supply of tokens is needed.

For the next 70 years, the pool will decrease weekly.

In other words, this phase slows down  the release of tokens, while forming a deficit.

The distribution system is designed for 72 years. Surely, it’s too early to look that far. In the future a large community may be formed –  the referral tree, in which, due to the spillover effect, a user will receive most of his referral bonuses from users he does not even know personally.

The best for the last

Nominex users will be able to trade on Binance for free. The thing is that Nominex is preparing to become a Binance broker right now – this functionality is already developed

In fact, you will be able to trade on Nominex with all the trading pairs available on Binance. All Binance liquidity will be available on Nominex. The users’ funds will also be stored in Binance wallets. Thus, Nominex will get rid of its main drawback – a small number of coins, trading pairs and low liquidity.

At the same, the conditions of free trading for MAX partnership level owners and discounts for other levels will also persevere.

All of the above will make the trading process on Nominex as profitable and safe as possible.