Liquidity mining is a process in which crypto holders lend assets to a decentralized protocol in return for rewards. The rewards are usually two types - Protocol-generated (for example trading fees) and tokens.
In the case of the IPOR Protocol, the liquidity providers' (LPs) assets are used to underwrite interest rate swaps. As compensation for this valuable service, LPs are rewarded with:
- 1.Protocol-generated fees, Sum of all Payoffs (SOAP), and through yield generated by asset management smart contracts earning yield from external money markets. These fees are denominated in the liquidity asset that is supplied (for ex. in DAI in case DAI is deposited in the IPOR Protocol). Learn more.
IPOR Liquidity mining rewards will start being distributed on January 25 at 12:00 PM UTC on app.ipor.io.
You can access the dedicated liquidity mining section in the DApp by pressing the "Liquidity mining" button in the left-side menu at app.ipor.io.
The liquidity mining interface is available on the Ethereum mainnet (starting from January 19, 2023) and on the Goerli testnet. While the testnet will feature simulated APRs, the APR information on the mainnet will be based on real-world data (realistic APRs).
The interface enables community members to boost their yields by staking IPOR liquidity tokens (ipXXXX) and IPOR tokens in the DApp interface.
Note that IPOR liquidity mining rewards will start to be distributed on January 25 at 12:00 PM UTC. Community members can already start preparing for the launch of LM rewards by going to app.ipor.io and:
- 1.Depositing liquidity (currently USDC, USDT, or DAI).
- 2.Staking the ipXXXX tokens.
- 3.Depositing IPOR tokens.
- 4.Staking them for pwIPOR.
- 5.Powering up one or more of the pools you have deposited liquidity into.
NOTE: Performing all five steps above will make you ready to receive rewards as soon as they launch on January 25 at 12:00 PM UTC.
The first step to becoming a liquidity provider in the IPOR Protocol is to have a Web3 wallet (MetaMask) and have it credited with USDC, USDT, or DAI. You will also need some ETH for payment of gas fees on the Ethereum network.
You have two options for depositing liquidity.
- 1.You can go to the "Pools" section, select an asset, and then click the deposit button.
2. You can go to the "Liquidity mining" section, select the asset you would like to deposit, and then click on "Provide Liquidity".
Both approaches to providing liquidity open the same dialogue where you can select the amount based on your current wallet balance. If this is the first time you are interacting with the IPOR Protocol you will have to first confirm an "approve" transaction, and then perform the "deposit" transaction:
Once you have deposit liquidity, you will receive ipXXXX tokens. Those will be available in your MetaMask wallet and will be detected by the IPOR DApp UI. The "Stake/Unstake" button will become clickable.
Once you click on the "Stake/Unstake" button, you will see a pop-up dialogue that will enable you to stake your ipXXXX tokens.
Once you confirm the approval and stake transactions, you will be ready to start receiving liquidity mining rewards. Staked ipXXXX tokens generate rewards in pwIPOR tokens.
Your liquidity mining APR will be displayed on the "Reward process" graph and in the "Rewards" section of the screen. Depositing liquidity and staking your IPOR liquidity tokens makes you eligible to receive a 1x Power-up (essentially, no Power-up).
You can increase that Power-up multiplier and thus your effective APR with IPOR tokens.
Once you have supplied liquidity in one of the IPOR Protocol pools, you can obtain IPOR tokens to boost your liquidity mining rewards and increase your base multiplier above 1x.
To do that, you first need to obtain IPOR tokens. You can do that in several ways:
- 3.You can earn IPOR tokens by staking your ipXXXX tokens.
Once you have obtained some IPOR tokens in your connected wallet, they will be visible on the Rewards process graph:
With IPOR tokens in your Web3 wallet, you can now stake them to obtain pwIPOR. To do that, press the Stake/Unstake button in the pwIPOR section of the graph (in orange in the screenshot above). You will see a pop-up dialogue that features your current amount of IPOR tokens enabling you to stake all or part of that amount.
Once you stake an amount of your choosing, you will receive pwIPOR tokens. Those will be displayed in the pwIPOR part of the graph (750 in the example below). Any unstaked IPOR tokens will be visible on the right.
Once you have provided liquidity, staked your liquidity tokens (ipXXXX), and staked IPOR tokens, you can power up by pressing the "Edit Power-up" button.
NOTE: Switching between the available assets, only updates the left side of the graphic. This refers to the fact that you can use your staked IPOR tokens - pwIPOR - to boost your liquidity mining in any of the available pools.
When you press the "Edit Power-up" button, a pop-up dialogue appears which enables you to use your pwIPOR tokens to increase your APR for the selected asset. In the example below, 750 pwIPOR tokens are used to increase the APR from the base 90.95% (1x multiplier AKA "base multiplier") to a maximum of 166.98% (2x multiplier).
Under "Your delegated pwIPOR" you can also see the distribution of your pwIPOR boosts among the available pools. In the example below, no delegation of pwIPOR has been done for USDC and USDT.
Once you have selected the amount of pwIPOR you would like to delegate to the specific pool (based on the APR you are aiming to achieve), press the "Update" button and confirm the Uniswap transactions.
That's it. You have now powered up with IPOR tokens!
You can claim any unclaimed rewards by using the Rewards section available on the right side of the "Reward process" graph. Simply press "Claim Rewards" and confirm the wallet transaction in your Web3 wallet.
Liquidity mining rewards (apart from simple pool deposits) are denominated in pwIPOR tokens. pwIPOR tokens are not transferable but can be unstaked for IPOR tokens. There is a 14-day cool-off period to unstake pwIPOR for IPOR. If you don't want to wait, you can unstake immediately for a 50% fee.
NOTE: Staking or unstaking liquidity tokens (ipXXXX) and staking or unstaking IPOR tokens will also claim any unclaimed rewards.
To unstake pwIPOR for IPOR, simply click the "Stake / Unstake" button in the "pwIPOR" part of the graph.
In the pop-out window - select the "Unstake" tab, select the number of pwIPOR you would like to unstake, and then select one of two options:
- 1.Unstake with a 14-day cool-off period. No fee.
- 2.Unstake immediately with a 50% fee.
Once you have selected one of the two options - click "Unstake" in the lower right corner of the pop-up window and confirm the MetaMask transaction.
NOTE: If you decided to unstake immediately - the 50% pwIPOR fee will be distributed among staked pwIPOR holders.
The yield calculator is located to the right of the "Reward process" graph. To activate it, click the toggle button.
The calculator helps you to:
- 1.Understand what APR and power-up multiplier you will get for different staked ipXXXX and pwIPOR combinations in the case of a brand new position (unchecked "include current position" button);
- 2.Understand what APR and power-up multiplier you can get by modifying an existing position (checked "include current position" button).
The calculator will provide you with the above estimates based on the current state of the IPOR Protocol - TVL for the selected pool, the price of the IPOR token, and delegated pwIPOR for the selected pool.
NOTE: A more advanced yield calculator is also available as a Google Sheet. Create a copy of the sheet to edit it.