Liquidity Mining
Incentivize users to bring liquidity
Last updated
Incentivize users to bring liquidity
Last updated
The main goal of the Liquidity Mining (LM) program is to reward users or entities who bring liquidity on Antfarm's ecosystem.
As Antfarm lets users create liquidity on very high fee pools, users could find loopholes by locking liquidity (for example stable-coins) on 100% fee pools in orders to get rewarded.
The program will reward users' liquidity that has been actually used, rewarding them based on the amount of fees generated (but unclaimed yet) in their current positions.
Every 4 weeks, LPs will be able to register their Positions to the LM program and will receive a portion of the monthly allocation of ATF and AGT as a bonus directly on their wallets. The more the ATF unclaimed, the more they'll receive.
The program will last for 39 rounds of 4 weeks, approximately 3 years.
The bonus will be received the next time you register your positions (even if you don't have any to register again). You'll only be able to register your positions once during the same round.
As LPs will only be able to register (claiming the bonus at the same time), they'll have the choice between registering early to receive the bonus earlier but registering Positions with lower ATF claimable or registering late in order to register their positions with a higher amount of ATF claimable (scoring more points for next month) but receiving the bonus later.
Registering during the first three weeks will reduce the amount of ATF received from the LM program linearly from -50% to 0%. (e.g. if you register after 10 days, you'll only receive approx. 75% of the ATF you should have received). The remaining amount will be burned.
The amount of AGT won't be impacted by this slashing.
The LM program will also incentive regular users that participate in two consecutive months granting a small bonus on top of the amount rewarded.
The LM program can also be called by the Delegate of a position, in that case the bonus will go towards this address.
In order to distribute the rewards in a fairest way, point multipliers have been added to the program on March 7th 2023 (see proposal).
Points are calculated based on the amount of ATF held by the positions of a user when registering his positions. Every pool has a multiplier that affects the amount of points awarded to a user for a specific round.
This point multiplier will be the sum of two different multipliers:
A base multiplier set by our multisig in order to be able to increase or decrease a pool multiplier without having to go through proposals.
A community multiplier that can be increased by staking ATF or AGT to increase the multiplier of a specific pair.
The community multiplier will be based on the sum of ATF and AGT staked towards a specific pool, the multiplier will be used for any LP of the pool and based on its amount at the moment of the registration.
1
0 to 1
0 to 25,000
2
1 to 2
25,000 to 75,000
3
2 to 2.5
75,000 to 150,000
E.g. Alice is a Liquidity Provider in ATF/ETH 10% pool, the base multiplier has been set to x5 and as there are no ATG nor AGT staked, the global multiplier would be x5. She decides to stake 35,000 AGT in order to increase the pool multiplier: the community multiplier is now x1.2, setting the global multiplier at x6.2 (5 + 1.2). Bob also wants to increase the community multiplier of that pool, he decides to stake 40,000 ATF, setting the new multiplier to x7 (5 + 2).
When staking or registering, a personal lock will be set to 28 days in order to make sure others can profit as well from the community multiplier. This lock will be set to 28 days anytime new ATF or AGT are staked towards any pair.
E.g. Alice stakes ATF for ATF/ETH 10%, her lock will be set to 28 days, some days later, she stakes towards another pool, the lock is set again to 28 days. She'll have to wait 28 days without registering or staking more before being able to unstake her ATF or AGT.
