Liquidity Mining
Last updated
Last updated
In liquidity mining, 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:
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.
pwIPOR tokens which can be exchanged for IPOR tokens. .
IPOR Liquidity mining rewards started being distributed on January 25 at 12:00 pm UTC on app.ipor.io.
Access the dedicated liquidity mining section in the DApp.
The easiest way to start receiving pwIPOR liquidity mining rewards is to use the IPOR DApp zapping interface.
Note: Zapping removes the complexity from the depositing, staking, and powering up process and is significantly more gas efficient. It also enables you to select your APR.
Simply select the pool you want to deposit liquidity to by clicking on it on the "Provide Liquidity" page. Then, select the type of asset you want to use for the zap-in, set the amount, and choose your APR using the slider.
Once done, click on "Approve" and then "Zap".
NOTE: If you don't want to boost your liquidity mining position with pwIPOR tokens, simply move the APR slider all the way to the left. You will still get the Base APR (protocol-generated rewards in the native token and the lowest liquidity mining reward).
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, DAI, ETH, stETH, or wETH. You will also need some ETH to pay gas fees on the Ethereum network.
You have two options for manually depositing liquidity.
➡️ From the "Provide Liquidity" page:
Select an asset in the "Liquidity Pools" section and click on the "Manual" button in the upper right.
You can still change the pool in which you want to deposit by using the drop-down menu.
In the case of the stETH pool, you can select to zap-in with three types of assets - ETH, stETH, or wETH. In the case of the USDT, USDC, and DAI pools, you can only deposit the asset corresponding to the pool.
Use the percentage buttons to quickly input predefined amounts.
Click "Approve" and once the transaction goes through, click "Provide Liquidity."
Then go to the staking section below, select the amount you want to stake. Then click "Approve" and once the transaction goes through, click "Stake."
Once your assets are staked, you can boost your APR by going to the "Liquidity Mining" section, linked in the "Power-up my APR" dialogue below "Staking." You can learn how to boost your APR on the "Liquidity Mining" page by jumping to this section.
NOTE: Boosting your APR requires pwIPOR tokens. You can acquire pwIPOR by staking IPOR. pwIPOR-boosting will significantly increase your APR.
➡️ From the "Liquidity Mining" page:
Go to the "Liquidity mining" page by selecting it from the "Earn" drop-down menu.
Select the asset you want to deposit, scroll down to the "Reward Process" section of the page, and then click "Provide Liquidity."
Determine the amount you want to deposit based on your available balance, click "Approve", and once the transaction goes through, click "Provide Liquidity." You will receive ipTokens which you can then stake.
To stake your ipTokens, click the "Stake / Ustake" button. Input the amount you want to stake, click "Approve", and once the transaction goes through - click "Stake".
NOTE: Staked ipTokens 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 ipTokens makes you eligible to receive a 1x Power-up (essentially, no Power-up).
NOTE: You can boost 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:
You can purchase IPOR tokens on the open market on Uniswap.
You can claim IPOR tokens as part of the IPOR airdrop, if you were eligible.
You can earn IPOR tokens by staking your ipTokens 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 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 (ipTokens), 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 protocol-generated fees) 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 (ipTokens) 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:
Unstake with a 14-day cool-off period. No fee.
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 1: If you already have an amount of pwIPOR being unstaked and you unstake a new amount of tokens, the 14-day cool-down counter will be reset. For example, you have 100 pwIPOR being unstaked after 2 days (12 days have passed). You have 200 undelegated pwIPOR that you would like to unstake. If you do that before the 2 days have passed so the 100 pwIPOR unstaking is complete, all 300 IPOR will be subject to a 14-day cool-down.
NOTE 2: If you decide to unstake immediately - the 50% pwIPOR fee will be distributed among staked pwIPOR holders.
If you want to stop liquidity mining and/or want to withdraw your liquidity from IPOR, you first need to unstake your ipTokens.
Go to the liquidity mining page.
Scroll down to the "Rewards process" dialogue.
Click on "Stake/Unstake" in the left part of the graph (not the pwIPOR-related one).
Determine the number of ipTokens you want to unstake and confirm the transaction in your Web3 wallet.
Once the ipTokens appear above the "Manage Liquidity" button, click it, select "Withdraw," determine the amount you want to withdraw, and confirm the Web3 transaction.
That's it. Your liquidity is now available in your Web3 wallet.
NOTE: Withdrawing liquidity is subject to a 0.5% withdrawal fee.
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:
Understand what APR and power-up multiplier you will get for different staked ipTokens and pwIPOR combinations in the case of a brand new position (unchecked "include current position" button);
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.
