We’re excited to announce our new Liquidity Mining program which will begin on March 1 2023.
This is the next important milestone on our roadmap to launching Bumper and is important for ensuring sufficient liquidity for anticipated token demand prior to the mainnet launch.
This program rewards users providing DEX liquidity (BUMP-USDC pair) into Uniswap v2, issuing BUMP rewards to users who then deposit their Uniswap LP tokens into the Bumper dApp.
Liquidity Mining Program Rewards
A total of 1,820,000 BUMP will be made available to Liquidity Mining program participants, split equally across each epoch. This means 140,000 BUMP will be emitted during each epoch, proportionally shared based on the total amount of LP tokens deposited in the program.
Participants have the ability to stake and unstake at any time, with no minimum lockup period.
Migration from Uniswap v3 to v2
Currently, BUMP tokens are only available on Uniswap v3 as a BUMP-WETH pair, and some users have reported issues with a lack of liquidity and sometimes high slippage rates.
As a result, we have decided to migrate to Uniswap v2 and open a BUMP-USDC pool, and this transition will occur in conjunction with the launch of the LM program outlined below.
How to participate and earn rewards
There are basically 2 steps required to participate in the LM program:
Step 1: Supply BUMP and USDC tokens into Uniswap v2’s BUMP-USDC pool.
Step 2: Stake your Uniswap LP tokens into the Bumper dApp LM module.
Users provide liquidity to the BUMP-USDC pair by connecting their wallet to the Uniswap v2 BUMP-USDC pool. You will be required to deposit an equal value of BUMP tokens and USDC tokens into the pool.
For example, if the price of BUMP is $0.05, and you have 20,000 BUMP tokens ($1000) you will need to provide 1000 USDC to make the pair match in value.
Once you have supplied your BUMP and USDC tokens to the Uniswap v2 pool you will begin to earn yields from fees charged for transactions on the DEX. You will also be returned BUMP_USDC_UNI_LP tokens, representing your position in the pool.
To participate in the Liquidity Mining program, you will then connect the same wallet containing your BUMP_USDC_UNI_LP tokens to the Bumper dApp in the Liquidity Mining screen and click STAKE.
Once your stake has been confirmed, you will then begin earning rewards from the Bumper LM program, in addition to any yields which you earn from Uniswap.
LM Program Epochs
The Liquidity Mining program will run as week-long epochs.
Each epoch will begin at 12 pm UTC on Wednesdays and will end at the same time on the following Wednesday. At this point, the next epoch starts, and participants are automatically enrolled into the subsequent epoch without them needing to take any action.
There will be 13 epochs in total, running from 1 March 2023 until 31 May 2023. See the chart below for the exact start dates of each epoch.
Users will be able to stake their Uniswap LP tokens into the Bumper dApp a couple of days prior to the start of Epoch-1 to ensure they benefit from participating for the full week of this first epoch. However, no tokens will be emitted until Epoch-1 officially begins.
Staked and Effective Balances
Users may enter the Liquidity Mining program at any time, even whilst an epoch is ongoing, and rewards are calculated and distributed once the epoch ends.
At the end of each weekly epoch, the amount of BUMP rewards allocated will be distributed pro-rata to participants based on their effective % share of the entire pool’s total value.
To eliminate participants “gaming the system” by entering the epoch at a later date, the system applies a linear decay relationship between the staked balance and the effective balance that qualifies to earn rewards on a pro-rata basis.
For example, this means that stakers who enter the pool exactly mid-way through an epoch would earn 50% of the rewards for this current epoch compared to those users who participated from the beginning as shown below:
Of course, a user who enters the LM program during an epoch will earn the full rewards for the following, and subsequent epochs (assuming they do not withdraw) as their staked balance and effective balance will be equal when the new epoch begins.
If a user withdraws from the Liquidity Mining program before the current epoch ends, they forfeit any rewards earned in the current epoch, but are entitled to keep any rewards earned in previous epochs.
For example, if a user were to deposit LP tokens mid-way through Epoch 1, and withdraws at some point during the week of Epoch 3:
- During Epoch 1, the user earns a pro-rata amount (in this case 50%) as they entered at exactly the halfway point.
- During Epoch 2, the user earns the full amount of rewards as they participated for the entire epoch.
- During Epoch 3, the user earns no rewards for this epoch as they withdrew prior to the end of the epoch.
Claiming BUMP rewards
At the end of each epoch, participants may claim any accrued token reward by clicking on the CLAIM button.
To withdraw from the epoch program, click the UNSTAKE button in the dApp. If there are tokens available to claim at this point, they will be claimed and redeemed to your wallet in the same transaction.
Our Liquidity Mining staking contract first debuted with the BarnBridge Yield Farming program and has been thoroughly audited — and more importantly — battle-tested in the field.
At one point, this contract was the biggest holder of USDC and third largest holder of DAI simultaneously, with the staking contract being one of the largest honeypots on Ethereum with around $700M worth of stablecoins deposited.