Migrating to Uniswap Liquidity Mining Phase 2
Our 600% APY Promotion was a huge success. What’s next?
Phase 1 of the “FNX Liquidity Mining Rewards on Uniswap” initiative is soon drawing to a close, and will end at 14:00 UTC+0, Sep 20th. FNX mining rewards will stop accumulating at that time, but your liquidity pool (LP) tokens and FNX rewards will remain safely in the contract. You may withdraw your LP tokens before or after the end of the mining initiative (please withdraw before September 30 14:00 UTC+0).
As mentioned earlier, our Uniswap mining campaign is not a one-time promotion, and phase 2 of the program will begin in just a few days.
Phase 2 will start at 14:00 UTC+0 on 19th Sep., and will continue indefinitely, with periodical mining reward revisions.
As indicated in our newly revised tokenomics, 70% of the maximum supply of FNX tokens is reserved in the Community Rewards Fund for liquidity mining incentives. It also doubles as a treasury fund for the future FinNexus DAO.
To facilitate this incentive program, the FinNexus foundation will in advance move 450,000 FNX WRC20 tokens from the Community Rewards Fund to our Ethereum lockup address on Wanchain. Then, we will mint 450,000 FNX ERC20 tokens on Ethereum. Those tokens will be placed in the liquidity mining smart contract as rewards for liquidity providers.
How to Mine FNX in Phase 2?
Continue reading ahead to find two sets of different instructions. Choose the set of instructions which applies to you, according to whether you did or did not participate in Phase 1 Liquidity mining.
The first set of instructions is for those who did NOT participate in Phase 1 liquidity mining.
The second set of instructions is for those who DID participate in Phase 1 liquidity mining.
Instructions for people who did NOT do Phase 1 liquidity mining:
- You must first provide liquidity to the FNX/ETH pool on Uniswap V2. You will need to deposit an equal value (NOT equal amount) of ERC20 FNX tokens and ETH into the pool. If you have not used Uniswap before, follow along with these instructions from Mainframe, just make sure that you Are using the FNX/ETH pair On Uniswap, and not the other token pair mentioned in these instructions.
- After successfully contributing liquidity to Uniswap, you will receive UNI-V2 pool tokens in the same address from which you contributed the liquidity. These UNI-V2 tokens represent your share of the FNX/ETH liquidity pool. You can track the size of the pool and your share of it here. Please note that merely providing liquidity will NOT earn you FNX rewards, you MUST complete the next step.
- Navigate to liquidity.finnexus.io and toggle the switch at the top right of the page to select “Mining Phase v2”.
4. With the UNI-V2 tokens in the address you used from step 2, enter the amount of FNX/ETH UNI-V2 tokens you want to stake from your wallet. Click “Stake,” and follow the instructions in your wallet to complete the transaction. After completing this step, your FNX token rewards will automatically begin to accrue.
Instructions for people who DID do Phase 1 liquidity mining:
- Start by going to liquidity.finnexus.io. Toggle the switch at the top right section of the page to select “Mining Phase v1”,
- Input the amount of liquidity you would like to withdraw. If you are withdrawing after September 20th 14:00 UTC+0, you should withdraw the maximum amount of UNI-V2 tokens. Phase 1 liquidity mining ends at that time. You cannot gain any more rewards from “Mining Phase v1” after that time. Please withdraw your liquidity from “Mining Phase v1” before September 30 14:00 UTC+0. We will be removing the remaining FNX tokens from this rewards contract after this time.
- Click “Withdraw” and follow the steps in your wallet to complete the transaction. Both your UNI-V2 liquidity pool tokens and your FNX token liquidity mining rewards will be withdrawn to your wallet. Note that at this point, if you want to compound your rewards, you will need to take your new FNX tokens and combine them with ETH to “Add Liquidity” to the FNX/ETH pair on Uniswap to create more UNI-V2 tokens!
- Toggle the switch at the top right of the page to select “Mining Phase v2”.
- Enter the amount of FNX/ETH UNI-V2 tokens you want to stake from your wallet. Click “Stake,” and follow the instructions in your wallet to complete the transaction. Once you have completed this step, you will begin to accrue FNX rewards.
Distribution of FNX in Phase 2
The distribution of FNX in Phase 2 differs slightly from Phase 1.
- The total reward is fixed at 5000 FNX per day; (It was adjusted to 1000FNX since 30th Oct 2020)
- FNX will be distributed pro-rata (proportionally) to those who contribute UNI-V2 tokens to the mining contract. Earlier stakers and stakers with higher value of stake will earn more FNX during this incentive program.
- FNX rewards accrue in real-time. Token holders who have staked their FNX/ETH UNI-V2 tokens will need to “claim” their FNX token rewards on-chain. These rewards will not be automatically distributed. Please be aware of the ETH gas fees required to claim your FNX rewards. Your claimable rewards do not expire like they do in some DeFi protocols. They will be there for you whenever you get the chance to claim them. No need to worry about high gas fees or getting busy during the week.
- Liquidity providers also earn a portion of the trading fees that accrue to the pool. With each transaction, the Uniswap Protocol assesses a 0.3% fee that accrues to the pool itself. When liquidity providers withdraw their UNI-V2 tokens from the mining UI on liquidity.finnexus.io, they will also be able to access their portion of accumulated transaction fees in the FNX/ETH liquidity pool.
Comparison of Phase 1 and Phase 2
Stay tuned for more exciting announcements about additional upcoming testing bounties and liquidity mining programs.
FinNexus is building a suite of open finance protocol clusters that will power hybrid marketplaces trading both decentralized and traditional financial products. The headline product released is a fully decentralized options model with pooled liquidity, live on both Ethereum and Wanchain.