Duck Liquidity Pool Launch
It’s finally here! Learn everything you need to know as a DLP liquidity provider.
(Important: The DLP Duck ($DUCK) token is not in circulation yet and will be listed on Uniswap in the following days.)
The $DUCK token will be listed on Uniswap during a 5 hour time window between 12 pm and 5 pm UTC on Monday, 21st December 2020.
Pools start generating rewards on Wednesday, and the exact Block will be communicated on Telegram.
The long-awaited DLP is finally going live!
Soon you will be able to start earning DUCK by becoming a liquidity provider. Before that becomes possible, now is the perfect opportunity to familiarize yourself with this innovative platform.
Becoming a DUCK liquidity provider is easy, however, there are some serious implications that you need to consider. Our goal here is to provide you with all relevant information that will help you make an informed decision.
What is the Duck Liquidity Pool?
The Duck Liquidity Pool (DLP) is a DuckDAO DeFi market maker that will offer services to projects and exchanges. Projects that are incubated by DuckDAO will be the first to benefit from the service, but it will become widely accessible to public projects over time.
Projects have three ways to take advantage of the DLP Market Maker:
- Project Token Purchase — DLP buys tokens to provide buy and sell-side liquidity.
- Project Token Borrow — DLP borrows tokens against collateral and provides buy and sell-side liquidity.
- Fixed Fee Mode — Projects provide buy and sell-side liquidity themselves and pay a fixed service fee in exchange for a limited duration listing.
Detailed explanation in the blackpaper.
Yield Farming plays a major role in the Duck Liquidity Pool and we’ve incorporated significant upgrades compared to other yield farming platforms on the market today.
Most of the yield farming projects were decimated by large inflows of liquidity, heavy-duty farming, and almost complete project abandonment. It’s always on to the next one in DeFi.
The DLP will challenge this status quo with a strong proposition. Liquidity providers must have skin in the game, otherwise, DeFi protocols do not make sense.
We solicit liquidity provider engagement through the introduction of a deflationary mechanism, the unilateral (one-sided) burn.
With the deflationary mechanism, we encourage loyal liquidity providers by rewarding them over the long-term and we protect the project by discouraging short-term liquidity providers from joining.
The goal is to cultivate a strong pool of liquidity providers that have a real stake and interest in the DLP, that care about the success of the platform and are involved with the DAO.
What is a unilateral (one-sided) burn?
We’ve researched and analyzed existing models to find ways to make them better, more authentic, and relevant for users.
The DLP rewards long-term engagement through the implementation of a one-sided-burn that happens when liquidity is unstaked from the platform. This deflationary mechanism rewards users that remain liquidity providers for the longest period of time. When a liquidity provider leaves the platform, he or she agrees to burn 100% of the primary token in the trading pair.
Note: Usually this token will be DUCK, however for ease of understanding, the primary token is on the left side of the pair (e.g. DUCK/DDIM will burn DUCK tokens, DDIM/DUCK will burn DDIM tokens.)
Yield Farming Schedule
The DLP rewards early supporters by providing exceptionally high rewards in the first year by using peak weeks. Naturally, peak weeks only last for seven days, during which massive amounts of DUCK are awarded to participating liquidity providers.
Peak weeks are followed by a few months of calm, normal rewards.
The first two pools will receive three peak weeks in the first year after they are introduced. The difference in rewards is significant, encouraging a great start for each trading pair introduced.
How big of a difference?
For example, in the DUCK/DDIM pool, one peak week will issue three million DUCK, while periods in between will only issue two million DUCK.
Breaking it down to a weekly difference, a peak week is worth 18 normal weeks.
DUCK rewards are fairly shared across all liquidity providers, depending on the amount of liquidity provided, relative to the total value of all staked assets.
Other pools will have different calculations depending on the multiplier effect.
In order to mitigate some of the risks, we developed multipliers for the riskiest pools on the DLP. The DUCK/DDIM example above receives a 3x multiplier and that’s already calculated in the yield farming rewards. Other less risky pools will have a 2x multiplier, while the safest pools are not going to receive any multipliers, i.e. only 1x.
Multipliers are a great way for us to compensate liquidity providers for the one-sided-burn and the risks they are undertaking.
$DUCK liquidity providers are eligible for other special rewards:
- Market-making profit distribution
- Project token airdrops
- NFT as rewards
These rewards may be distributed based on a lottery or participation method, with the exception of market-making profits, which are evenly distributed according to relative liquidity ratios.
You must be a $DUCK liquidity provider with an active stake on the DLP to be eligible for these rewards.
Get started with DLP
The DLP is fully audited (twice) and is nearing its launch date.
Join us on Telegram to be the first to know how and when the token will be launched. Our mods will provide you with the most relevant project updates on time.
You will be provided with enough time to prepare yourself to become a DLP liquidity provider if you are willing to have “skin in the game.”
We’ve planned the yield farming schedule around a four year period for all $DUCK pools, giving us sufficient opportunity to innovate and continue transforming DeFi, one protocol at a time.
Find Out More About DuckDAO🐥
DuckDAO is a community-backed digital asset incubator that provides promising early-stage crypto startups with the expertise, financial resources, and marketing power needed to fast track their progress on the path to success.
The DuckDaoDime token is your key to unlocking all of the DuckDAO benefits. You can access DDIM here.
Who will win? One VC or a thousand ducks?
Telegram Duck Liquidity Pool: https://t.me/duckliquiditypool
Telegram Duckdao: https://t.me/duckdaolobby
CoinGecko (DDIM): https://www.coingecko.com/en/coins/duckdaodime