Jun 17, 2024
Jun 17, 2024
Jun 17, 2024
Introducing TVL-Weighted Farming Rewards: Boosting Liquidity and Rewards for LPs
Introducing TVL-Weighted Farming Rewards: Boosting Liquidity and Rewards for LPs
Introducing TVL-Weighted Farming Rewards: Boosting Liquidity and Rewards for LPs
Introduction:
We're thrilled to announce an exciting update to our farming rewards program, launching today. The new system will distribute 5,000 $VELAR tokens daily to each of the top five pools ranked by Total Value Locked (TVL). This change aims to incentivize liquidity providers (LPs), drive protocol growth, and make participating in liquidity mining even more rewarding.
By introducing this TVL-weighted farming rewards system, we anticipate increased participation from LPs, leading to higher TVL across the platform. As more users contribute liquidity to the top pools, the overall liquidity and trading volume on the platform are expected to grow. This, in turn, will enhance the user experience, reduce slippage, and create a more vibrant and active trading environment.
Moreover, the increased TVL and liquidity will contribute to the long-term sustainability and growth of the platform. It will attract more users, traders, and projects to the ecosystem, further strengthening the platform's position in the DeFi space. The TVL-weighted farming rewards serve as a catalyst for organic growth, incentivizing users to actively participate and contribute to the platform's success.
The TVL-weighted farming rewards will be live for a minimum period of one month starting today, and extensions, if any, will be announced accordingly. We encourage all LPs to take advantage of this opportunity and maximize their rewards by providing liquidity to the top pools.
Join us in this exciting new chapter as we continue to innovate and provide compelling incentives for our valued community members. Together, let's drive the growth and success of our platform to new heights!
How It Works:
Starting today, the top 5 pools by TVL from the previous epoch will each receive 5,000 $VELAR tokens daily for the next month. This means LPs in these high-TVL pools will enjoy boosted farming rewards, incentivizing them to provide and maintain liquidity where it's needed most.
The top five pools will be determined by their TVL rankings in the running cycle of the current epoch. For example, if Pool A, B, C, D, and E had the highest TVLs last epoch, they would each receive 5,000 $VELAR tokens daily this epoch (15,000 $VELAR per epoch), distributed amongst their LPs proportional to each LP's share of the pool's total liquidity.
We believe this new system will encourage more users to provide liquidity in high-TVL pools, boosting overall protocol liquidity. In turn, deeper liquidity will make our AMM more resilient, improve capital efficiency, and decrease slippage for swaps.
Rewards Calculation Example:
The Velar reward system operates in cycles, with each cycle lasting approximately three days (500 blocks). The first reward cycle begins on June 17th at 12:00 PM London Time and concludes on June 20th at 12:00 PM London Time. Subsequent cycles follow the same pattern, with the next cycle running from June 20th at 12:01 PM to June 23rd at 12:00 PM London Time, and so on.
Starting from June 17th, the system will calculate the average total staked amount for all participating farms during each three-day cycle. The top 5 farms with the highest average total staked will be eligible to receive Velar rewards in the epoch they are currently in at the end of the cycle.
In the rare event that block times are prolonged, causing two cycles to fall within the same epoch for a particular farm, the rewards for that farm will be added to the subsequent epoch to ensure fair distribution.
Let's say our protocol's top five pools by TVL last epoch were:
Pool A
Pool B
Pool C
Pool D
Pool E
In the new epoch, each of these pools would receive 5,000 $VELAR tokens daily:
Pool A: 5,000 $VELAR daily
Pool B: 5,000 $VELAR daily
Pool C: 5,000 $VELAR daily
Pool D: 5,000 $VELAR daily
Pool E: 5,000 $VELAR daily
These rewards would be divided amongst each pool's LPs based on their proportion of the pool's total liquidity.
It’s also worth noting that if the VELAR-STX and VELAR-aeUSDC pools maintain their positions among the top five pools by TVL, liquidity providers in these pools will have the opportunity to earn even greater rewards. In addition to the existing 5,000 VELAR per day farming rewards, these two pools will receive an additional 5,000 VELAR per day for being in the top five farms.
This means that if VELAR-STX and VELAR-aeUSDC pools consistently rank among the top five, liquidity providers in these pools will be eligible for a total of 10,000 VELAR per day in farming rewards. This substantial reward boost serves as a strong incentive for LPs to actively contribute liquidity to these pools and maintain their high TVL rankings.
To be eligible for rewards, liquidity providers (LPs) must stake their LP tokens and maintain their stake for at least one full epoch. An epoch consists of 500 blocks, which translates to approximately three days. It's important to note that staking for the entire duration of an epoch is crucial to qualify for the rewards. Partial staking or unstaking before the epoch concludes will result in forfeiting the rewards for that epoch.
In other words, if an LP stakes their tokens in epoch 0, they will only qualify for rewards at the end of epoch 1. This requirement ensures that LPs are committed to providing liquidity for a meaningful period, rather than staking and unstaking quickly to claim rewards.
For example, if an LP stakes their tokens in Pool A during epoch 0, they will be eligible for a share of Pool A's 5,000 $VELAR daily rewards in epoch 1, proportional to their share of the pool's total liquidity at the end of epoch 1. However, to receive these rewards, Pool A must maintain its position among the top five pools by TVL throughout epoch 1. If Pool A falls below the top five in TVL during epoch 1, LPs in that pool will not receive rewards for that epoch, even if they maintain their stake.
Additionally, if an LP unstakes their tokens from Pool A before the end of epoch 1, they will not receive any rewards for that epoch, even if Pool A remains in the top five by TVL.
This epoch-based system encourages LPs to maintain their stakes for longer periods in high-TVL pools, promoting stability and predictability in the protocol's liquidity pools. By tying rewards to both staking duration and pool performance, the protocol incentivizes LPs to strategically provide liquidity where it is most needed and beneficial for the overall ecosystem.
Benefits for LPs and the Protocol:
The TVL-based rewards system offers significant advantages:
LPs in top TVL pools earn boosted rewards, incentivizing liquidity provision where it matters most
Increased liquidity makes our AMM more robust and resilient to market volatility
Deeper liquidity reduces slippage and enhances trading UX, attracting more users and volume
Alignment of LP rewards with protocol growth creates a virtuous cycle
Get Ready to Earn:
The TVL-weighted farming rewards are live now for the next month. Ensure you've staked your LP tokens in high-TVL pools to maximize your earnings. The higher the pool's TVL, the sweeter the rewards!
As always, we're dedicated to making liquidity mining as lucrative as possible for our valued LPs. We're confident this update will drive substantial liquidity and foster a vibrant AMM ecosystem.
Happy farming!
Introduction:
We're thrilled to announce an exciting update to our farming rewards program, launching today. The new system will distribute 5,000 $VELAR tokens daily to each of the top five pools ranked by Total Value Locked (TVL). This change aims to incentivize liquidity providers (LPs), drive protocol growth, and make participating in liquidity mining even more rewarding.
By introducing this TVL-weighted farming rewards system, we anticipate increased participation from LPs, leading to higher TVL across the platform. As more users contribute liquidity to the top pools, the overall liquidity and trading volume on the platform are expected to grow. This, in turn, will enhance the user experience, reduce slippage, and create a more vibrant and active trading environment.
Moreover, the increased TVL and liquidity will contribute to the long-term sustainability and growth of the platform. It will attract more users, traders, and projects to the ecosystem, further strengthening the platform's position in the DeFi space. The TVL-weighted farming rewards serve as a catalyst for organic growth, incentivizing users to actively participate and contribute to the platform's success.
The TVL-weighted farming rewards will be live for a minimum period of one month starting today, and extensions, if any, will be announced accordingly. We encourage all LPs to take advantage of this opportunity and maximize their rewards by providing liquidity to the top pools.
Join us in this exciting new chapter as we continue to innovate and provide compelling incentives for our valued community members. Together, let's drive the growth and success of our platform to new heights!
How It Works:
Starting today, the top 5 pools by TVL from the previous epoch will each receive 5,000 $VELAR tokens daily for the next month. This means LPs in these high-TVL pools will enjoy boosted farming rewards, incentivizing them to provide and maintain liquidity where it's needed most.
The top five pools will be determined by their TVL rankings in the running cycle of the current epoch. For example, if Pool A, B, C, D, and E had the highest TVLs last epoch, they would each receive 5,000 $VELAR tokens daily this epoch (15,000 $VELAR per epoch), distributed amongst their LPs proportional to each LP's share of the pool's total liquidity.
We believe this new system will encourage more users to provide liquidity in high-TVL pools, boosting overall protocol liquidity. In turn, deeper liquidity will make our AMM more resilient, improve capital efficiency, and decrease slippage for swaps.
Rewards Calculation Example:
The Velar reward system operates in cycles, with each cycle lasting approximately three days (500 blocks). The first reward cycle begins on June 17th at 12:00 PM London Time and concludes on June 20th at 12:00 PM London Time. Subsequent cycles follow the same pattern, with the next cycle running from June 20th at 12:01 PM to June 23rd at 12:00 PM London Time, and so on.
Starting from June 17th, the system will calculate the average total staked amount for all participating farms during each three-day cycle. The top 5 farms with the highest average total staked will be eligible to receive Velar rewards in the epoch they are currently in at the end of the cycle.
In the rare event that block times are prolonged, causing two cycles to fall within the same epoch for a particular farm, the rewards for that farm will be added to the subsequent epoch to ensure fair distribution.
Let's say our protocol's top five pools by TVL last epoch were:
Pool A
Pool B
Pool C
Pool D
Pool E
In the new epoch, each of these pools would receive 5,000 $VELAR tokens daily:
Pool A: 5,000 $VELAR daily
Pool B: 5,000 $VELAR daily
Pool C: 5,000 $VELAR daily
Pool D: 5,000 $VELAR daily
Pool E: 5,000 $VELAR daily
These rewards would be divided amongst each pool's LPs based on their proportion of the pool's total liquidity.
It’s also worth noting that if the VELAR-STX and VELAR-aeUSDC pools maintain their positions among the top five pools by TVL, liquidity providers in these pools will have the opportunity to earn even greater rewards. In addition to the existing 5,000 VELAR per day farming rewards, these two pools will receive an additional 5,000 VELAR per day for being in the top five farms.
This means that if VELAR-STX and VELAR-aeUSDC pools consistently rank among the top five, liquidity providers in these pools will be eligible for a total of 10,000 VELAR per day in farming rewards. This substantial reward boost serves as a strong incentive for LPs to actively contribute liquidity to these pools and maintain their high TVL rankings.
To be eligible for rewards, liquidity providers (LPs) must stake their LP tokens and maintain their stake for at least one full epoch. An epoch consists of 500 blocks, which translates to approximately three days. It's important to note that staking for the entire duration of an epoch is crucial to qualify for the rewards. Partial staking or unstaking before the epoch concludes will result in forfeiting the rewards for that epoch.
In other words, if an LP stakes their tokens in epoch 0, they will only qualify for rewards at the end of epoch 1. This requirement ensures that LPs are committed to providing liquidity for a meaningful period, rather than staking and unstaking quickly to claim rewards.
For example, if an LP stakes their tokens in Pool A during epoch 0, they will be eligible for a share of Pool A's 5,000 $VELAR daily rewards in epoch 1, proportional to their share of the pool's total liquidity at the end of epoch 1. However, to receive these rewards, Pool A must maintain its position among the top five pools by TVL throughout epoch 1. If Pool A falls below the top five in TVL during epoch 1, LPs in that pool will not receive rewards for that epoch, even if they maintain their stake.
Additionally, if an LP unstakes their tokens from Pool A before the end of epoch 1, they will not receive any rewards for that epoch, even if Pool A remains in the top five by TVL.
This epoch-based system encourages LPs to maintain their stakes for longer periods in high-TVL pools, promoting stability and predictability in the protocol's liquidity pools. By tying rewards to both staking duration and pool performance, the protocol incentivizes LPs to strategically provide liquidity where it is most needed and beneficial for the overall ecosystem.
Benefits for LPs and the Protocol:
The TVL-based rewards system offers significant advantages:
LPs in top TVL pools earn boosted rewards, incentivizing liquidity provision where it matters most
Increased liquidity makes our AMM more robust and resilient to market volatility
Deeper liquidity reduces slippage and enhances trading UX, attracting more users and volume
Alignment of LP rewards with protocol growth creates a virtuous cycle
Get Ready to Earn:
The TVL-weighted farming rewards are live now for the next month. Ensure you've staked your LP tokens in high-TVL pools to maximize your earnings. The higher the pool's TVL, the sweeter the rewards!
As always, we're dedicated to making liquidity mining as lucrative as possible for our valued LPs. We're confident this update will drive substantial liquidity and foster a vibrant AMM ecosystem.
Happy farming!
Introduction:
We're thrilled to announce an exciting update to our farming rewards program, launching today. The new system will distribute 5,000 $VELAR tokens daily to each of the top five pools ranked by Total Value Locked (TVL). This change aims to incentivize liquidity providers (LPs), drive protocol growth, and make participating in liquidity mining even more rewarding.
By introducing this TVL-weighted farming rewards system, we anticipate increased participation from LPs, leading to higher TVL across the platform. As more users contribute liquidity to the top pools, the overall liquidity and trading volume on the platform are expected to grow. This, in turn, will enhance the user experience, reduce slippage, and create a more vibrant and active trading environment.
Moreover, the increased TVL and liquidity will contribute to the long-term sustainability and growth of the platform. It will attract more users, traders, and projects to the ecosystem, further strengthening the platform's position in the DeFi space. The TVL-weighted farming rewards serve as a catalyst for organic growth, incentivizing users to actively participate and contribute to the platform's success.
The TVL-weighted farming rewards will be live for a minimum period of one month starting today, and extensions, if any, will be announced accordingly. We encourage all LPs to take advantage of this opportunity and maximize their rewards by providing liquidity to the top pools.
Join us in this exciting new chapter as we continue to innovate and provide compelling incentives for our valued community members. Together, let's drive the growth and success of our platform to new heights!
How It Works:
Starting today, the top 5 pools by TVL from the previous epoch will each receive 5,000 $VELAR tokens daily for the next month. This means LPs in these high-TVL pools will enjoy boosted farming rewards, incentivizing them to provide and maintain liquidity where it's needed most.
The top five pools will be determined by their TVL rankings in the running cycle of the current epoch. For example, if Pool A, B, C, D, and E had the highest TVLs last epoch, they would each receive 5,000 $VELAR tokens daily this epoch (15,000 $VELAR per epoch), distributed amongst their LPs proportional to each LP's share of the pool's total liquidity.
We believe this new system will encourage more users to provide liquidity in high-TVL pools, boosting overall protocol liquidity. In turn, deeper liquidity will make our AMM more resilient, improve capital efficiency, and decrease slippage for swaps.
Rewards Calculation Example:
The Velar reward system operates in cycles, with each cycle lasting approximately three days (500 blocks). The first reward cycle begins on June 17th at 12:00 PM London Time and concludes on June 20th at 12:00 PM London Time. Subsequent cycles follow the same pattern, with the next cycle running from June 20th at 12:01 PM to June 23rd at 12:00 PM London Time, and so on.
Starting from June 17th, the system will calculate the average total staked amount for all participating farms during each three-day cycle. The top 5 farms with the highest average total staked will be eligible to receive Velar rewards in the epoch they are currently in at the end of the cycle.
In the rare event that block times are prolonged, causing two cycles to fall within the same epoch for a particular farm, the rewards for that farm will be added to the subsequent epoch to ensure fair distribution.
Let's say our protocol's top five pools by TVL last epoch were:
Pool A
Pool B
Pool C
Pool D
Pool E
In the new epoch, each of these pools would receive 5,000 $VELAR tokens daily:
Pool A: 5,000 $VELAR daily
Pool B: 5,000 $VELAR daily
Pool C: 5,000 $VELAR daily
Pool D: 5,000 $VELAR daily
Pool E: 5,000 $VELAR daily
These rewards would be divided amongst each pool's LPs based on their proportion of the pool's total liquidity.
It’s also worth noting that if the VELAR-STX and VELAR-aeUSDC pools maintain their positions among the top five pools by TVL, liquidity providers in these pools will have the opportunity to earn even greater rewards. In addition to the existing 5,000 VELAR per day farming rewards, these two pools will receive an additional 5,000 VELAR per day for being in the top five farms.
This means that if VELAR-STX and VELAR-aeUSDC pools consistently rank among the top five, liquidity providers in these pools will be eligible for a total of 10,000 VELAR per day in farming rewards. This substantial reward boost serves as a strong incentive for LPs to actively contribute liquidity to these pools and maintain their high TVL rankings.
To be eligible for rewards, liquidity providers (LPs) must stake their LP tokens and maintain their stake for at least one full epoch. An epoch consists of 500 blocks, which translates to approximately three days. It's important to note that staking for the entire duration of an epoch is crucial to qualify for the rewards. Partial staking or unstaking before the epoch concludes will result in forfeiting the rewards for that epoch.
In other words, if an LP stakes their tokens in epoch 0, they will only qualify for rewards at the end of epoch 1. This requirement ensures that LPs are committed to providing liquidity for a meaningful period, rather than staking and unstaking quickly to claim rewards.
For example, if an LP stakes their tokens in Pool A during epoch 0, they will be eligible for a share of Pool A's 5,000 $VELAR daily rewards in epoch 1, proportional to their share of the pool's total liquidity at the end of epoch 1. However, to receive these rewards, Pool A must maintain its position among the top five pools by TVL throughout epoch 1. If Pool A falls below the top five in TVL during epoch 1, LPs in that pool will not receive rewards for that epoch, even if they maintain their stake.
Additionally, if an LP unstakes their tokens from Pool A before the end of epoch 1, they will not receive any rewards for that epoch, even if Pool A remains in the top five by TVL.
This epoch-based system encourages LPs to maintain their stakes for longer periods in high-TVL pools, promoting stability and predictability in the protocol's liquidity pools. By tying rewards to both staking duration and pool performance, the protocol incentivizes LPs to strategically provide liquidity where it is most needed and beneficial for the overall ecosystem.
Benefits for LPs and the Protocol:
The TVL-based rewards system offers significant advantages:
LPs in top TVL pools earn boosted rewards, incentivizing liquidity provision where it matters most
Increased liquidity makes our AMM more robust and resilient to market volatility
Deeper liquidity reduces slippage and enhances trading UX, attracting more users and volume
Alignment of LP rewards with protocol growth creates a virtuous cycle
Get Ready to Earn:
The TVL-weighted farming rewards are live now for the next month. Ensure you've staked your LP tokens in high-TVL pools to maximize your earnings. The higher the pool's TVL, the sweeter the rewards!
As always, we're dedicated to making liquidity mining as lucrative as possible for our valued LPs. We're confident this update will drive substantial liquidity and foster a vibrant AMM ecosystem.
Happy farming!
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A comprehensive portfolio dashboard, giving traders clear visibility into their positions and transaction history
A comprehensive portfolio dashboard, giving traders clear visibility into their positions and transaction history
Expanding self-deployed pool capabilities to include sBTC as a base pair option
Expanding self-deployed pool capabilities to include sBTC as a base pair option
Today marks the launch of $VELAR staking, a pivotal milestone in Velar's mission to build a robust, community-driven Bitcoin DeFi ecosystem.
Today marks the launch of $VELAR staking, a pivotal milestone in Velar's mission to build a robust, community-driven Bitcoin DeFi ecosystem.
A comprehensive portfolio dashboard, giving traders clear visibility into their positions and transaction history
Expanding self-deployed pool capabilities to include sBTC as a base pair option