Yield farming rewards start accruing NOW! The highest yield farming pair will be TEDY/ADA, followed by ADA/iBTC, ADA/iUSD, ADA/cBTC, and ADA/CHRY.
Other initial yield farming rewards include ADA/iETH, ADA/DJED, ADA/INDY, ADA/cNETA, ADA/FACT, ADA/LENFI, ADA/ENCS, ADA/SNEK.
Users can add liquidity here.
Claiming yield farming rewards should be deployed in 2 weeks, however liquidity providers will start accruing rewards now and be rewarded retroactively in line with the announced rewards.
Introduction
TeddySwap is at the forefront of decentralized finance on the Cardano blockchain, committed to providing a secure and efficient trading experience. As we transition into our next growth phase, a well-structured incentive program is paramount. This document outlines a comprehensive plan to escalate liquidity provision through yield farming.
We are proposing a strategic 48-month yield farming program designed to significantly boost liquidity and incentivize trading on our platform. By allocating 4,320,000 TEDY tokens for yield farming and setting aside 480,000 TEDY for trading competitions (a total of 60% of total tokens at 4.8 million TEDY), we aim to create a synergistic ecosystem that rewards both liquidity providers and active traders. This strategy is expected to enhance user engagement, increase trading volumes, and strengthen market positioning.
Yield farming rewards officially start occurring now, starting block 9614849 (now).
Yield Farming Rewards
Monthly Distribution Plan:
Starting at 178,218 TEDY in the first month, rewards decrease linearly each month, concluding with 1,782 TEDY in the 48th (final) month. This offers a clear advantage to early adopters while still providing attractive incentives over time.
To start, there will be 3 tiers. A total of 11 trading pairs are eligible for yield farming rewards this month.
Sixty percent of these rewards are allocated to the TEDY/ADA pair and 40% are allocated between tiers 2 and 3. Tier 2 gets 55% of this 40% share and tier 3 gets 45% of the 40% share.
Month 1 rewards will look like this.
Tier 1: 106,930 TEDY monthly or 3,564 daily
- TEDY/ADA liquidity providers
Tier 2: 39,207 TEDY monthly to be shared evenly with the 4 pairs
- ADA/iBTC, ADA/cBTC, ADA/iUSD, ADA/CHRY liquidity providers
This comes out to 9,801 TEDY for each of these pairs in month 1.
Tier 3: 32,079 TEDY monthly to be shared evenly with the 8 pairs
- ADA/iETH, ADA/DJED, ADA/INDY, ADA/cNETA, ADA/FACT, ADA/LENFI, ADA/ENCS, ADA/SNEK liquidity providers
This comes out to 4,009 TEDY for each of these pairs in month 1.
The full code and calculations can be found here.
Liquidity Distribution Strategy
TeddySwap’s yield farming program is designed to enhance the efficiency of liquidity across our platform through a strategic allocation of rewards. Central to this strategy is the ADA/TEDY pool, which, as the cornerstone of our ecosystem, will be guaranteed a baseline allocation of 60% of the monthly yield farming rewards.
Until full governance measures are in place, the team retains all rights to tweaks all yield farming rewards as seen fit by team.
After the 1st month, the 40% monthly distribution will be dynamically allocated across other liquidity pools. This allocation will be informed by a blend of metrics, including Total Value Locked (TVL) and trading volume.
Furthermore, liquidity pools that are identified as strategically significant or that demonstrate burgeoning potential will be considered preferentially during the allocation process. This ensures that innovation and market responsiveness remain at the heart of our distribution strategy, enabling TeddySwap to evolve proactively with the DeFi landscape.
Teddy Bears Club Yield Farming Bonus
TeddySwap is proud to extend a special yield farming bonus to the dedicated supporters of our project — holders of The Teddy Bears Club NFT collections. This exclusive bonus is our way of showing gratitude to those who have played a pivotal role in our journey, starting from the Initial NFT Offering (INO) that provided the foundation for TeddySwap.
Round 1 Collection Bonus: Holders of the Round 1 Teddy Bears Club NFT collection will receive a 1% yield farming bonus upon claim.
Round 2 Collection Bonus: Holders of the Round 2 Teddy Bears Club NFT collection will be granted a 0.4% yield farming bonus upon claim.
Full calculation of Teddy Bears Club rewards will be available within the next week. However, the bonus calculations for yield farming are live on our DEX.
Tracking Yield Farming and Claiming Rewards
A new dashboard for yield farming rewards will soon be available, within the next 2 weeks, offering intuitive reward tracking and a straightforward claiming process. This update is set to provide a seamless, integrated experience for our users.
Details of our 1st trading competition will be released shortly after the launch of our yield farming deployment.
Conclusion
Our yield farming structure embodies a strategic initiative to foster growth and reinforce the vitality of our platform. By harmonizing the incentives for liquidity providers with the ambitions of active traders, we pave the way for a robust, synergistic ecosystem where every participant benefits.
This comprehensive program is poised to elevate TeddySwap’s market presence and ensure competitive swap rates and minimal slippage. The descending scale of rewards is a move to reward early adopters while maintaining momentum over a 48-month horizon.
We stand at a pivotal juncture, ready to advance our protocol into its next phase of evolution with a sustainable emissions model. We look forward to this new era of liquidity and trading with our community.
For more information on TeddySwap:
Mainnet | Website | Twitter | Discord | Docs | Github | Linktree
