We have announced last March 14 the launch of PKM:SPS Liquidity Pool. With this, you may now swap PKM and SPS via BeeSwap or TribalDex. In this post, we will be discussing the rewards for the LP providers of the PKM pool, which will start on March 24.
You may also access these details in the Liquidity Pool & LP Rewards portion of the PKM page.
WHY REWARD LIQUIDITY
So that those who receive PKM from using peakmonsters.com will have a place to buy and sell their tokens if they want... but keep in mind we will be making many products throughout the year that will need PKM. None of these features have we announced yet so it's up to you to consider what we've done and what we may do.
LP Reward Pool
Rewards will be given to contributing users to incentivize a large more stable PKM:SPS pool. PeakMonsters team will donate profits to a contract-pool that will contractually and daily distribute tokens to users that add to the PKM:SPS pool. Before tokens are sent to the distribution contract, the token donations will be set aside in this account @pkm-reward.
In practice, the more activity on PeakMonsters market, the more value will be added as rewards.
Distribution Contract
As you can see in the distribution contract, the accounts that were used to provide initial liquidity are NOT ELIGIBLE for the LP rewards. This means that there will be more rewards available for those new users that will be providing liquidity in the Liquidity Pool.
Note: The rewards in the pool are distributed by hive-engine distribution smart contract, and not by our team.
LP Reward Pool Period
We are starting with a 120 day period. This means that the total rewards will be distributed during that 120 days. Immediately after starting the reward pool period, we will start saving up for the next one (@pkm-reward account)
We reserve the right to add to the reward pool before each period ends. This is the best and fairest technical method to interact with the hive-engine contract. If Hive-engine creates a new distribution method we can adapt. We will try to keep the length between 90-180 days.
INITIAL REWARDS
The PKM:SPS liquidity is now funded with initial rewards, these are highlighted in the image below:
_$38,862 (total of initial rewards) distributed over 120 days would be $323 a day. But keep in mind the value of the reward pool tokens fluctuate by the minute.
As we've mentioned, we will be distributing the rewards over a course of 120 days. This means that we're giving the rewards away 3x faster than what some users expected (i.e. 365 days). The APR for the PKM:SPS pool as of writing is 281%.
It is important to note that the 281% APR will not remain constant. Here are some of the things that could happen which would also affect the APR:
- Values of these reward tokens could go UP or DOWN changing the value of the daily rewards.
- More circulating PKM could be added to the PKM:SPS pool
- People could buy up PKM changing the price (or sell)
TOKEN REQUESTS
We will look to our users to see what tokens they would like in the pool. This may result in swapping tokens for others including buying PKM from the market to add to the reward pool.
PeakMonsters and Splinterlands links:
- PeakMonsters: https://peakmonsters.com/
- PeakD accounts: PeakMonsters | PeakMonsters blogging account
- PeakD Projects discord: https://discord.gg/QdYg3zUSCD
- Play Splinterlands: https://splinterlands.com?ref=peakmonsters
Other Social Media accounts:
hay algun proceso de quema del token PKM?
super interesante, ya estoy añadiendo liquidez hace dias😎
nice!
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some very nice rewards!
Nice! I just added some liquidity to the pool from my gaming account.
Nice.