Warp Finance’s Liquidity Rush
The liquidity rush represents one of many ways Warp puts its users first, offering rewards on liquidity provisioning using the platform’s Warp Tokens.
Warp’s users are its number one priority. Thus, Warp Finance has created an additional rewards mechanism for early Warp Platform participants: The Warp Liquidity Rush.
The Warp Liquidity Rush rewards users for liquidity provisioning using the Warp Token:
Specifically, Warp will create a geyser for Uniswap liquidity provisioning (LP) tokens that enables users to generate rewards for $WARP/ETH liquidity provisioning.
The Warp Protocol’s native token, the Warp Token ($WARP), has many functions on the platform. Primarily, it acts as a governance token as well as an incentive for participating in various capacities on the platform. Thanks to this aforementioned governance utility, users may also vote to add additional functions to this token in the future.
During the Liquidity Rush, Warp Finance will distribute 3% of the total Warp Token supply to WARP/ETH LP token generators during this 1 week program. As the total token supply will be 150,000 WARP, that means that 4,500 Warp Tokens will be available for users to collect as rewards during the limited-time Liquidity Rush event.
The Liquidity Rush acts to incentivize early users of Warp and provide the Warp Token with Liquidity:
The Liquidity Rush event will occur in the first week after the Warp Token launch. This has two primary effects:
- Rewarding early adopters of our platform.
- Promoting immediate liquidity of the Warp Token.
Additional liquidity provider rewards will be available after the Liquidity Rush as a part of the Liquidity Provider Reward Program.
The Liquidity Provider Reward Program will consist of 10% of the total Warp Token supply (15,000 Warp Tokens). With 3% of this 10% being distributed for WARP/ETH liquidity provisioning during this 1 week program, that leaves a remaining 7% of the total Warp Token supply (10,500 Warp Tokens) in this program.
Additional liquidity provider rewards will be available after the Liquidity Rush as a part of the Liquidity Provider Reward Program.
The Liquidity Provider Reward Program will consist of 10% of the total Warp Token supply (15,000 Warp Tokens). With 3% of this 10% being distributed for WARP/ETH liquidity provisioning during this 1 week program, that leaves a remaining 7% of the total Warp Token supply (10,500 Warp Tokens) in this program.
The remainder of these geyser rewards will be unlocked linearly over the course of 6 months. Each day, a specific amount of Warp rewards is unlocked relative to the total number of users staking, total staking shares, and total staking shares seconds. A part of this unlocked amount is distributed to users who harvest.
To better understand how rewards are distributed, let’s take the following example:
For simplicity, let’s consider 50 WARP are unlocked daily over the 180 day lock period and the maximum reward amount is 10,000. Assume 3 days have passed since the beginning of the vesting period. In other words, the current maximum available reward that can be distributed is represented by 150 WARP tokens.
If your shares represent 1% of the total staking shares, you should be entitled to an approximate amount of 0.025 WARP ( 1% * total_available_unlocked_rewards / total_vesting_perido_in_days * number_of_staking_days, so 0.01 * 150 / 180 * 3)
Fast forward180 days to understand rewards for the entire vesting period.
Assuming nobody unstaked, there are still 10000 rewards available, but now everything is unlocked. Based on the same share ratio of 1%, you get 0.01 * 10000 / 180 * 180, so 0.01* 10000 = 100 WARP tokens.
Take note that these values (like share ratio, available unlocked amount and total staking shares) can vary with each block as more users can stake their tokens, some can harvest, for others staking time increases and so on.
Furthermore, there will be options to extend this through the Warp Token’s governance capacities as well as Warp Community Fund allocations — the power is truly in the hands of our users.
Furthermore, there will be options to extend this through the Warp Token’s governance capacities as well as Warp Community Fund allocations — the power is truly in the hands of our users.
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