Initial Liquidity Incentives — Phase 1
Crust Finance aims to be very community-centric, and therefore our tokenomics is designed in a way to reward early adopters and supporters. As a testament to this, we have reserved a percentage of our supply to be airdropped as initial community incentives. It is time to reveal the complete details of our initial community airdrops.
Who is this airdrop for?
This airdrop includes testnet users for crust and sudoku, initial liquidity providers, and traders who added liquidity and traded on our platform before $CRST deployment. The distribution of the airdrop will look like this
- 60% to Liquidity Providers
- 30% to traders who use our dex.
- 5% to testnet users for Crust Finance
- 5% to testnet users for sudoku Finance
How is the airdrop amount calculated?
Liquidity Providers
The airdrop percentages for liquidity Providers will be calculated based on the average liquidity contribution to the specified pools.
- USDT/USDC
- USDT/WMNT
- USDC/WMNT
- USDC/ETH
- USDT/ETH
Each of the above pools will have the same weightage for airdrop.
The team will take a daily snapshot, till two days before the token launch, and the average liquidity contribution compared to the total liquidity contribution across pools will be used for calculating rewards.
Let’s get this through an example.
Pool One (USDT/USDC):
- Average TVL: $5,000,000
- Average Liquidity provided by the user: $50,000
Pool Two (USDC/WMNT):
- Average TVL: $4,000,000
- Average Liquidity provided by the user: $100
The total reward for the user in the above case will be
(($50,000 / $5,000,000) + ($100 / $4,000,000)) * 0.2 * 0.6 * Airdrop Amount
Traders
The airdrop for traders will be calculated based on the total volume they did, in comparison to the overall trading volume. To avoid fake volume generation, only the pools having at least one of ETH, WMNT, USDT, USDC tokens will be considered.
Let’s get this through an example.
- Total Volume: $2,000,000
- Trader One Volume: $50,000
The total reward for the user in the above case will be
($50,000 / $2,000,000) * 0.3 * Airdrop Amount
Testnet Users
The exact mechanics won’t be disclosed to avoid airdrop farming by users/bots.
When and how will the rewards be distributed?
The rewards will be distributed in terms of veCRST NFT positions, which can be used to vote on gauges and receive fees and bribes once we launch, and can also be traded on NFT marketplaces. The veCRST will be made claimable at the launch of our incentives module comprising of gauges, ve(3,3), and CRST tokens.
We believe that rewarding positive actions can go a long way in building a strong community. No better way to do that than rewarding early supporters! If you have any questions connect with the team on discord.
