$SPICE Liquidity Farming
As $SCIFI is due to launch shortly, here is an overview of the liquidity farming options that will be available and how the community can participate.
// Please note that there is currently a proposal to amend the liquidity rewards structure to improve long-term value creation for the SPICE DAO community. Read up on the details here.
In order to incentivise the provision of liquidity and growth on DEX tradability for the $SCIFI index, Mission Control allocates a portion of $SPICE to community members who provide liquidity pools for SCIFI. This brief write-up will provide an overview of the structure and process.
How much $SPICE is allocated to liquidity farming?
- 5% of all $SPICE will be allocated to participants in the liquidity farming programs
- This amounts to a total of 2.1M SPICE being distributed over 365 days in 4 time windows.
Where and how can I provide liquidity?
- SPICE liquidity provision of SCIFI/ USDC and SCIFI/ ETH in Uniswap LPs will be rewarded.
- Instructions on how to add liquidity, or create pairs, can be found on the respective DEXs.
How will the distribution take place?
- The total allocation of 5% will be proportionately, depending on share of total liquidity provision, distributed to all liquidity providers.
- Network snapshots will be taken on a weekly basis in order to define who receives which allocation.
- Distribution will take place on the schedule outlined in the Dark Paper to all eligible wallets, via a direct transfer, called Spacedrop. No active claiming process is required.
- Allocation will take place for all wallets that are eligible to receive at least 10 $SPICE, in order to limit transaction costs.
In order to make sure that liquidity provision is incentivised continuously over a period of time, the LP allocations will be divided into 4 Spacedrops.
Participants within each time window will receive a quarter of the total allocation. The first time windows will be shorter thus more heavily incentivised. The subsequent windows will become longer, as outlined below:
- Spacedrop 1: Day 0–15: 25%
- Spacedrop 2: Day 16–45: 25%
- Spacedrop 3: Day 46–180: 25%
- Spacedrop 4: Day 181- 365: 25%
(Day 0 is the day on which SCIFI is minted)
To incentivise long-term commitment we will assign an equal amount of distribution tokens to each day in a given period, divided between the two USDC and ETH pools based on the size of each pool.