Reward for providing initial liquidity

Reward for providing initial liquidity

The most common form of reward for providing initial liquidity is yield farming. Yield farming was first attempted in July 2019 when Synthetix airdropped SNX to users who deposited sETH/ETH of Uniswap. At this time, the sETH/ETH pool was one of the largest in Uniswap.

It was the loan protocol compound that opened up yield farming in earnest. When COMP tokens were distributed to users who participated in the protocol through deposit/loan, the market became so active that even tokens with little demand, such as BAT (Basic Attention Token) tokens, were depleted. It is noteworthy that Compound’s Total Value Locked (TVL) hardly decreased even after the end of yield farming, thanks to the incentive structure designed based on Compound Labs' meticulous user testing and behavioral prediction. Based on the insights of Compound and existing yield farming, we propose the following reward system.

How to participate

reward of the initial liquidity provision can be obtained by (1) providing liquidity provision and (2) staking LP tokens from liquidity provision.

👉 Please refer to 'Liquidity Supply (Deposit)' and 'Staking LP Token' for participation.

3.9% of EKL's total issuance is distributed as a reward for providing initial liquidity. reward are paid for participation in liquidity over two periods. The first is 'LP staking reward (pre-token) before token launch,' and the second is 'LP staking reward (post-token) after token launch.‘

Reward for providing initial liquidity (3.9%)

Pre period - before token launch (1%)

• 12/20 ~ 1/4 00:00 period LP Staking participant (Post period: boost reward and whitelist candidate)

• 50% of the reward will be distributed linearly from 4/20 00:00 to 6/20 00:00 (2 months)

• 50% of the reward will be distributed linearly from 10/20 00:00 to 12/20 00:00 (2 months)

Reward for token launch delay (0.5%)

• 1/5 ~ 0.1% mining reward of total issuance every week until token launch

• 50% of the reward will be distributed linearly from 4/20 00:00 to 6/20 00:00 (2 months)

• 50% of the reward will be distributed linearly from 10/20 00:00 to 12/20 00:00 (2 months)

Post period - Additional reward for 3 months after token launch (2.4%)

• First month (1.3%)

  • Provide 0.8% block reward, 0.5% additional payment to whitelist candidates

• Second month (0.7%)

  • Provide 0.4% block reward, 0.3% additional payment to whitelist candidates

• 3rd month (0.4%)

  • Provide 0.2% block reward, 0.2% additional payment to whitelist candidates

• Whitelist candidates: Users (wallets) who have participated in LP Staking more than once from the Eclipse launch on December 20, 2021 to 23:59:59 on January 4, 2022

• 50% of the reward will be distributed linearly from 6/4 00:00 to 8/4 00:00 (2 months)

• 50% of the reward will be distributed linearly from 2022/12/4 00:00 to 2023/2/4 00:00 (2 months)