Honeycomb Farms Are Live — All You Want to Know to Apply for pCOMB Rewards
1Hive’s ecosystem has been expanding since the launch of Honeycomb Wallet and sustainable farming with COMB tokens both on xDai (xCOMB) and on Polygon (pCOMB) chains. As Honeyswap had been already live on xDai chain, 1Hive launched farming by airdropping xCOMB tokens to previous liquidity providers of Honeyswap on xDai chain.
Similar fashion followed for the pComb token but the airdrop qualifications were announced one month prior to the launch of the Polygon farms. We believe that the comb token has reached a floor price and now is the time to grow Honeyswap even more by establishing collaborations with other like-minded communities. Hence, as 1Hive, we are inviting like-minded communities to apply for pCOMB rewards for liquidity pairs of their tokens.
What are the use cases of COMB Tokens?
Honeyswap uses a multi-token model to manage the balance between Global and Local incentives. Development, support, and maintenance work that has Global benefits are funded using Honey from 1Hive’s common pool. Farming Rewards, where benefits are localized to a one supported chain use a COMB token which can be valued as a derivative of the volume on that specific chain.
That is, each COMB token (such as xCOMB and pCOMB) is unique to the chain where 1Hive deploys Honeyswap. In the most basic sense, COMB tokens are farming tokens, providing an incentive to liquidity providers to choose Honeyswap platform to earn yield in addition to their LP fees.
Previously, the fees collected on the volume of Honeyswap were used to buy back Honey (HNY) and sent to the common pool. However, with the introduction of yield farming with COMB tokens, we have tweaked the FeeReceiver contract of Honeyswap. Now, swap fees on Honeyswap are split 1/12 to Honey, 1/12 to the local Comb token for that chain, and 10/12 directly to the pool of liquidity providers facilitating the swap. Therefore, half of the fees collected from Honeyswap deployment on the specific chain are used to buy back the COMB tokens particular to that deployment.
Another use case, which is currently being discussed, is to equip COMB tokens with governance power. The idea is to allow the holders of COMB tokens to decide the farming pairs to be incentivized on the Honeycomb Farms as well as the allocation of farming points to specific pairs in the future.
Honeycomb Farms Allocation Points
To give a better idea, it would be good to explain the allocation point policy of Honeycomb Farms on Polygon first. While you can find a more detailed explanation on this policy on the 1Hive Wiki; let us simplify the basics of how the allocation points on Honeycomb works:
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Allocation Point Capacity — We have chosen to limit the total number of allocation points assigned at any one time to 1,000. There may be less than 1,000 points assigned at any given time, but not more.
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Currently, the farms are using only 575 out of a total of 1000 available allocation points, and 300 points are reserved for the upcoming Trader Pool rewards. Therefore, we have 125 allocation points, which gives us the opportunity to allocate some points (details of which will be shared below) to the liquidity pairs of communities who would like to collaborate and get featured on Honeycomb Farms.
Apply for Rewards Now
As Tulip DAO of 1Hive, we have finalized the reward process for the initial pairs of this collaboration program. And the spots for eligibility are limited!
There are two options to become eligible to get pCOMB rewards for your token pair on Honeycomb.
Option 1: You can pair $25k pCOMB with a liquidity to Honeyswap on Polygon. Accordingly, 12.5 allocation points will then be rewarded to your pair of choice over a 4-month period.
With this option, if you pair pCOMB with wETH, you will also be able to stake your LP and lock it for 120 days on Honeycomb to get 2x pCOMB rewards in return.
Also, for this option, it is possible to buy pCOMB over the market, at a current average price of $2. Or alternatively, we may also offer an OTC deal at $5 per pCOMB. (Note: OTC deal is limited!)
Option 2: You can also send $25k in USDC, DAI, USDT, wETH, wBTC to pCOMB Honeyswap DAO. In return, 18.75 allocation points will be rewarded to your pair of choice over a 4-month period. If you prefer using an OTC method for this option, we can also arrange it over Airswap. However, in that case, we will have to perform the transaction on Ethereum Mainnet.
What Will We Get in Return?
You may want to get concrete numbers instead of the abstract allocation points we have mentioned above. Accordingly, based on rough calculations, 12.5 allocation points means roughly 2,250 pCOMB distributed over a 4-month period. Because of the deflationary nature of pCOMB, in 4 months, with the same allocation points Honeycomb Farms will only be distributing 1,950 pCOMB. The calculations are not exact as we do not know how long people will lock their LP tokens on the farms.
Note: Locking LPs for 120 days grants a maximum reward multiplier of 2x while staking without locking grants 1x multiplier.
Therefore, if you decide to participate in our reward upon collaboration program, there will be 3 avenues for obtaining pCOMB as follows:
1. You will be able to buy $25k of pCOMB — Approximately 7,000 pCOMB;
2. You will be able to stake your pCOMB/wETH LP token on Honeycomb Farms — Approximately 15,000 pCOMB if you lock your stake for 120 days;
3. You will be able to select the pair to get incentivized on Honeycomb Farms — Approximately 2,250 pCOMB over a 4-month period.
In addition to these material benefits, if you become eligible, you will also receive some immaterial benefits as well.
1. In case you become eligible, you will get some “air time” as being a farming partner to 1Hive. And this may include an AMA on 1Hive’s social channels (either Discord or Telegram), Retweets on Twitter or a dedicated Medium Article where you can have the opportunity to introduce your platform/token/community.
2. As it is highly likely that COMB holders will have governance power over the future farming allocations, by holding COMB, you will have a significant voting weight when it is time to decide on the future direction of the farms.
Do not miss this limited offer! And be advised that Tulip DAO has the sole discretion to disqualify the participants in case of the detection of a misbehavior (such as dumping tokens bought in an OTC deal over the open market).
You can use the following form for application to get in touch with us: Apply Here
