Providing Liquidity

After a token economy goes live, users can provide liquidity and stake their LP position to earn from multiple streams.

LP Participants earn normal swap fees, which compound directly in the pool. LP Participants also earn a dedicated fee-stream from all token swaps and transfers (between 0.23% and 0.25% depending on the chain). If vesting was configured into the launch, LP Participants also receive an allocation from the vesting pool (20% of the vesting allocation, streaming linearly over 3 years). There is a 24-hour cliff from liquidity seed before the dedicated fee-stream and vesting distributions begin.

Participation Points + LP size = Net Incentive allocation per LP

Participants who stake longer earn proportionally more incentives relative to short-term stakers.

Participation Points

Participation Points build at a 100% annual accrual rate while an LP remains staked. They determine that LP’s proportional allocation of fee distributions and, where applicable, vesting distributions. They are non-transferable and have no monetary value.

On unstake, Participation Points burn proportionally. A full exit burns the related points with it. A partial withdrawal reduces points in proportion to what was removed.

Claiming while staked

The staking flow supports staking, withdrawing, and claiming as separate actions. An LP participant can claim pending accrued fees without leaving the pool.