Rewards
Liquidity providers in the Genesis Pool are eligible to earn rewards for their contributions. The rewards are distributed as an airdrop and are allocated differently across various token pairs in the pool. The list of token pairs and their corresponding airdrop percentages is predefined, and they will include popular pairs like ETH-USDC, DERP-ETH and 10 MemeTokens-ETH pair.
6.5% airdrops in total worth $650,000 (6.5 trillion out of 100 trillion DERP tokens).
Campaign is break-down into 3 categories. Total 6.5% (please refer to airdrop page for more details)
Genesis mining = 3%($300,000)
Trading competition = 3%($300,000)
âTop losersâ award = 0.5%($50,000)
The Reward allocation is solely based on how long users deposit into the vault. Users can free withdrawal, but if removing liquidity:
Within the first week of deposit, 50% of the rewards earned will be slashed and incentives for removing liquidity (same pool)
Within the first two weeks of the deposit, the 25% of the rewards earned will be slashed and incentives for removing liquidity (same pool)
After two weeks of the deposit, users will receive 100% of their rewards with no penalty cut for withdrawing liquidity.
NOTE: If the user have provided $1000 liquidity to any pool and removes $200 liquidity within one week, their rewards will be slashed by 50% only for the $200. For the rest $800, the reward accumulation will continue as usual.
If users withdraw and redeposit again, we will only calculate the rewards based on the new deposit amount. It will not affect previously earned rewards.
Below are the whitelisted pools with the total reward amounts per pool. The reward amount will be distributed amount the top LP's.
User need to provide liquidity to whitelisted LP pools with 1% fee tier or USDC/ETH pool with 0.3% fee tier or USDC/USDT pool with 0.01% fee tier to be eligible for genesis launch campaign. See below.
Whitelisted Pools
| Whitelisted LP pools | Genesis Rewards Percentage | Airdrop Rewards |
|---|---|---|
0.5% | $50,000 | |
0.2% | $20,000 | |
0.2% | $20,000 | |
0.2% | $20,000 | |
0.2% | $20,000 | |
*<ETH-USDC> | 0.2% | $20,000 |
USDT/ BNB | 0.1% | $10,000 |
<MEME 3> | 0.1% | $10,000 |
<MEME 4> | 0.1% | $10,000 |
<MEME 5> | 0.1% | $10,000 |
*DERP (zkSync) | 0.4% | $40,000 |
*DERP (BASE) | 0.4% | $40,000 |
*DERP (upcoming L2 chain) | 0.4% | $40,000 |
** MEME-3 to MEME-5 will be launched in upcoming weeks. * upcoming
Airdrop distribution will be released after TGE(Token Generation Event), within 1-3 days after TGE. Userâs would be able to claim it from the Airdrop page at derpdex.com website.
Rewards Calculation
The reward amount depends on the following factors:
Total Reward allocated to the pool
Total Liquidity available in the pool
Liquidity supplied by the User
Time the liquidity was active within the pool
The Price range to which the liquidity is supplied.
To calculate the total rewards, we take active liquidity in consideration which means that if the token is traded at $100 and the liquidity provided by user is in range $50 to $120, it's active liquidity. This LP will earn the rewards. But if the user have provided liquidity in the range $140 to $200, it won't be considered for the reward.
For total rewards we calculate the total reward of the pool and the number of seconds for the genesis pool campaign. Then for each LP user, we calculate the number of seconds the user have provided liquidity in active range.
So the formula to get reward is:
Here,
SecondsPerLiquidityInside is the time in seconds per liquidity each was active. This is read from the pool contract.
totalSeconds is the time through which the genesis pool campaign runs (69 days in seconds).
SecondsPerLiquidityInside is the time per liquidity that was active.
The total Annual Percentage Rate (APR) that an LP can earn is calculated based on the token deposit value and the LP's share in the pool. APR accumulation starts with the start of Genesis campaign. The reward currency during the airdrop will be in $DERP and $xDERP, the native token of DerpDEX.
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