Liquidity Program v2 Details and how to migrate from v1

The Liquidity Program v2 will start on July 2 at 09:00 UTC as a short-term liquidity program by the community governance.

Here is a summary of the program.

Liquidity Program v2 Details

This program rewards the liquidity providers on DEV:ETH pool on Uniswap v2 with DEV.

Liquidity providers need to stake LP tokens on Uniswap v2 on Liquidity Program v2. Simply put, the more LP tokens you stake, and the longer you stake, the more rewards you will earn. The rewards will be determined based on the proportion between “the total amount of LP tokens you have staked” multiplied by “the time you have staked” and that value in the program’s total.

Geyser has a concept called reward multiplier. This value increases linearly over the first month of staking and increasing the rewards you can earn. In the Liquidity Program v2, the reward multiplier increases to 5x over the first month.

The maximum reward is 10,000 DEV. However, if the APY falls below 30%, an additional 8,000 DEV will be added. The APY is calculated by multiplying the total reward amount by the total amount of DEV staked in the Liquidity Program v2 (calculated from the total amount of LP tokens staked).

The Liquidity Program v2 period is from July 2 at 9:00 UTC to September 2 at 9:00 UTC.

Subject Description
Target pool DEV:ETH on Uniswap v2
Reward 10,000 DEV (However, if the APY falls below 30%, an additional 8,000 DEV will be added)
Reward Multiplier 5x over a month
Period July 2 at 9:00 UTC to September 2 at 9:00 UTC

Migration from Liquidity Program v1

If you are already using Liquidity Program v1, we recommend, at 9:00 UTC on July 3 (or later), you unstake all of your Liquidity Program v1 and migrate to Liquidity Program v2.

When you unstake your Liquidity Program v1, you will receive the LP tokens you staked and DEV as your reward. To maximize your Liquidity Program v2’s reward, add DEV and paired ETH to the liquidity pool on Uniswap v2 to increase your LP tokens, then stake all your LP tokens on the Liquidity Program v2.

There is no need to remove the liquidity you provided on Uniswap v2. Your LP token’s balance represents your share of the Uniswap v2 liquidity pool; the liquidity pool automatically manages the total amount of DEV:ETH and automatically reflects the Uniswap swapping fees and rate fluctuations. So you don’t have to remove your LP tokens temporarily to migrate to the Liquidity Program v2.

If you have any unanswered questions, please comment on this forum post.


UPDATE 7/4/2021: APY at the moment is about 33%. The full formula can be found here, but the formula can be expressed as follows TOTAL_REWARDS_GEYSER_V2 / POOLED_DEV_ON_UNISWAP * LP_TOTAL_SUPPLY / LP_TOTAL_STAKED_ON_GEYSER_V2

Therefore, if a majority approves this poll, we will automatically add 8,000 DEV if the APY falls below 20% again.

Let me take a simplified form of governance here. Since the APY of the Liquidity Program v2 has fallen below 20%, I have added 8,000 DEV as planned. However, since the APY is still below 20%, I’m considering adding another 8,000 DEV. This usually requires a governance flow, but as a general rule of thumb, “keep the APY to more than 20%” seems more important than “addition of 8,000 DEV”, so I’m going to add another 8,000 DEV without waiting for formal governance. Are you agree with this?

  • Yes
  • No

0 voters

1 Like

BTW, the added rewards will be distributed retroactively, so don’t worry.

The monthly APY is currently at 16.4% which is the number I am comparing vs the V1 geyser.

The V1 geyser was probably running at 20-25% most times.

It would be good to at least match this if possible.

Your opinion gave me a good idea of what it actually looks like :slight_smile: