Archethic Swap update: New Farming Mechanism (+300% APR)

We are excited to introduce a significant update to our decentralized exchange (DEX) with a new farming mechanism designed to reward long-term commitment. This update provides UCO holders with flexible levels and the potential for higher rewards through a tiered system, reinforcing our mission to support sustained engagement with our project.

Overview of the New Farming Mechanism

Our new farming system is built around levels, each with a different reward distribution weight. The higher the level you choose, the longer the locking period for your liquidity pairs, but the greater the rewards you will earn.

To achieve major milestones by 2026, we’ve revised our token distribution. Initially, we planned to distribute 9 million $UCO per year over 10 years, specifically allocated to staking.

However, we will now distribute the tokens over 4 years to boost APR and liquidity. In the first farming phase over 2 months, we already distributed 2.5 million $UCO. Here is the planned token allocation for the coming years:

• Year 1: 45 million UCO tokens
• Year 2: 22.5 million UCO tokens
• Year 3: 11.25 million UCO tokens
• Year 4: 8.75 million UCO tokens

White paper will be updated accordingly soon.

Detailed Breakdown

Deposits & Rewards

Deposits begin on 25/07/2024, and rewards start on 01/08/2024.

Level-Based System

The new farming mechanism involves different levels, each offering a unique reward distribution weight. Higher levels require longer locking periods for your liquidity pairs, but they provide higher rewards and a better Annual Percentage Rate (APR). This system is recalculated in real time to ensure fairness.

Flexibility to Level Up

UCO holders can choose to level up at any time. When leveling up, you can select the a longer locking period than your current one. This resets the lock duration for your LP tokens to the new chosen period, but it also unlocks your current rewards. If you choose not to level up, both your LP tokens and rewards remain locked until the end of the current period.

Unlocking Rewards

Rewards are tied to the LP tokens and will be released when the LP tokens are withdrawn at the end of the locking period. However, leveling up allows you to unlock and claim your rewards immediately while committing to a new locking period.

Liquidity Pools Fees Update

With our new Leveling System on the aeETH/UCO pool, we’ve removed LP provider fees on this pool:

• 0.3% Protocol Fees, 0% LP Provider Fees on aeETH/UCO pool

For all other pools, we’ve eliminated protocol fees entirely. All fees will now go to LP providers, enhancing %APR, liquidity, and volume:

• 0% Protocol Fees, 0.3% LP Provider Fees on all other pools

Benefits to UCO Holders

• Higher Rewards: By choosing higher levels and longer locking periods, UCO holders can significantly increase their APR and overall rewards.
• Flexibility: The ability to level up and adjust locking periods gives UCO holders control over their investment strategies.

Incentivizing Long-Term Commitment

This new farming mechanism is designed to incentivize UCO holders who support our project in the long run. By locking their liquidity pairs for extended periods, investors can benefit from higher rewards, reflecting their commitment to the project’s success

Check the actual APR in our earn section: Archethic Earn

Tutorial

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