BETA/ETH Uniswap V3 Staking Incentive Program

Get ready… Uniswap V3 Staking Incentives are going live for Beta Finance this Friday, Oct. 29 at 1 PM UTC! Users will be able to stake BETA/ETH (1% fee) LP tokens in order to earn BETA rewards on top of trading fees for their LP positions. Only the 1% fee pool for BETA/ETH is incentivized.

• ⏰ The Uniswap V3 Staking Incentives will be for 30 days, from Friday, Oct. 29 at 1 PM UTC to Sunday, Nov. 28 at 1 PM UTC
• 🚀 750,000 BETA tokens will be distributed as staking incentives for Uniswap V3 BETA/ETH (1% fee only) LP over the 30-day duration
• 📬 The Uniswap V3 BETA/ETH (1% fee) Pool Address is: 0x6BeE0F0DEA573EC04A77Ff3547691f2EDCCf2A7c

We are excited to leverage new technology for Beta Finance, and have created one of the first integrated UI’s to handle Uniswap V3 Staking! The team has had fun building this. After adding BETA/ETH (1% fee) liquidity on Uniswap V3, users will be able to come directly to the Beta Finance DApp to stake their LP tokens and begin receiving BETA rewards on top of trading fees.

You will be able to withdraw BETA tokens to ERC20 through Binance.

How Uniswap V3 Staking Works

Liquidity providers (LPs) are able to provide liquidity for various price ranges of BETA/ETH (1% fee) pool on Uniswap V3, and in return receive a non-fungible ERC-721 token to represent their position. The UI is able to handle users who wish to stake multiple BETA/ETH positions to earn rewards, and rewards are only distributed for the time duration while the liquidity is active. Thus, LPs will have varying APR in BETA rewards depending on how they’ve provided liquidity.

Users are able to choose their risk profile and maximize rewards with Uniswap V3:

• Provide liquidity for a narrow price range (aka. concentrating liquidity) to earn higher APR, but also face higher risk of impermanent loss and will not receive rewards if price moves out of range.
• Provide liquidity for a wider price range to earn more guaranteed APR, and face less risk of impermanent loss, but face less capital efficiency so lower APR than if narrower.
• Users unfamiliar with concentrated liquidity, but would like to earn rewards should provide liquidity for a very wide range, e.g. 0 to infinity.

For a guide on how to provide liquidity on Uniswap V3, see the tutorial here.

Additionally, there is an important technical limitations to note for the Uniswap V3 Staker contract (Etherscan, Github).

• LP stakers will need to redeem the BETA staking rewards prior to when incentives end, as a decay rate is applied to anyone who unstakes after incentives end. If you unstake after the incentives end, you will receive less rewards.

Please see this blog post from Paradigm for more details and reward calculations.

Guide to Staking BETA/ETH LP on Beta Finance

For those unfamiliar with providing liquidity on Uniswap V3, please read the section above, and for a guide on how to provide liquidity on Uniswap V3 see the tutorial here.

1. Add liquidity to the BETA/ETH (1% fee) Uniswap V3 pool, and receive a non-fungible ERC-721 token that represents your LP position. The link to the Uniswap add liquidity interface is here, and the contract address is here.
2. Navigate to the DApp (https://app.betafinance.org), connect your wallet, and go to the “Provide Liquidity” tab.
3. Click the “Deposit to Stake” button on the card to begin the process of staking your LP tokens. The DApp will automatically detect your ERC-721 LP tokens for the BETA/ETH (1% fee) pool.

4. Click “Deposit to Stake” and execute the transaction, depositing your LP token to the BETA staker.

5. Click “Stake to Incentive Program”, which will then stake the LP tokens that you have deposited to earn BETA rewards.

6. Once the transaction is complete, the page will now indicate you have successfully staked your LP tokens and are now earning rewards.

Users are able to navigate to the “Provide Liquidity” page to view their positions. Similar to the staking process, removing tokens will require users to first unstake from the staker contract, and then withdraw their tokens from the staker contract back to the user’s wallet.

Why Uniswap V3 Staking Incentives?

Uniswap V3 introduced powerful features for DeFi users, e.g. an improved TWAP oracle and concentrated liquidity. Beta Finance dApp itself is a product that uses Uniswap V3 oracle for assets that are listed in a permissionless way. By setting BETA/ETH liquidity pool on Uniswap V3, BETA token can also be listed in a permissionless way on Beta Finance dApp.

Advantages of Uniswap V3 vs. Uniswap V2?

• In contrast to the Uniswap V2 TWAP oracle that requires an additional contract to build and calculate the price, the Uniswap V3 TWAP allows us to query the pool directly for the price. This enables better scaling for pool creation, by removing the need to ping additional contracts to prevent stale price feeds.
• Concentrated liquidity lets users provide greater liquidity with less capital, by enabling greater depth in selected price ranges. Hence, Uniswap V3 is more capital efficient for users or stakers in this case.

By having incentivized Uniswap V3 BETA/ETH liquidity pool, we gain the advantages of:

• 🔑 As a permissionless money market, Beta Finance relies on Uniswap V3 TWAP as the price oracle for new markets listed permissionlessly. Deep liquidity allows us to securely use the TWAP as a price feed for the BETA money market. BETA money market soon!
• ⚖️ Concentrated liquidity on Uniswap V3 allows buyers and sellers to trade BETA/ETH without significant price impacts

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Beta Finance is looking to expand our team and is actively hiring. If you are passionate about DeFi and excited to build the next generation of infrastructure for DeFi, we’d love the chance to learn more about you! Please see our job opportunities here.