Introducing HGET Liquidity Mining with Dynamic APY (260%-110%)
Hedget Liquidity Mines will reward HGET tokens to users who provide liquidity on automated market making platforms (AMMs) like Uniswap. The more liquidity users provide and the earlier they start participating, the greater share of the HGET pool they receive.
Program: HGET Liquidity Mine V1
Platform: Uniswap
Pool: HGET/ETH
Reward pool size: 7500 HGET
Special bonus pool for HGET auction winners: 2500 HGET
Start of the program: October 5th, 2020
Locked staking period: 2 weeks
APY: dynamic, based on bonding curve (260% to 110%)
Instructions
1. Provide liquidity to the HGET/ETH pair on Uniswap V2 by providing HGET and ETH
2. Receive UNI-V2 (HGET/ETH) LP Tokens
3. Stake those UNI-V2 LP Tokens in the Liquidity Mine V1 (available via Hedget.com interface)
Once you’ve deposited staking tokens, you will be able to check your current stake and reward amounts using the Liquidity Mining interface. You can add more staked liquidity whenever you want (within 2 weeks) and there is a 2 week lockup period after you locked your LP tokens. You receive your share of the incentive pool when you unstake after locking period ends.
How APY is calculated?
Yield is dynamically adjusted: as more LP tokens are deposited, yield falls.
We use Bancor-v1-style bonding curve to calculate the yield.
Yield starts at 260% APY and goes down to 110% APY when LP tokens containing equivalent of 72000 HGET are deposited, at which point depositing more LP tokens will no longer be possible. LP tokens will be locked for 2 weeks.
Precise calculation is given below:
First, we need to define “adjusted LP tokens” (hereinafter aLP tokens) as an amount of Uniswap pair LP tokens which contain 1 HGET at the time of deployment of the smart contract. It is defined through a coefficient e.g. 1 aLP token = 0.000123 LP tokens. All calculations below are done in aLP tokens being deposited.
Bancor bonding curve formula: P = R/(S*F) where, in our case,
R is a number of aLP tokens deposited, shifted R_0, i.e. R = deposited_aLP + R_0; R_0 = 250
S is a number of reward HGET tokens allocated, shifted by S_0, i.e. S = reward_HGET + S_0, S_0 = 1000
F — curve coefficient, equals 0.8
P is a price of reward HGET tokens in deposited aLP tokens, which gives us yield, APY in percent can be calculated as:
APY% = (0.5 * 26 * 100)/P
(taking into account that reward is given for 2 week deposit and LP tokens also lock in an equal amount of non-HGET tokens, thus increasing required capital 2x.)
Using derivation from https://drive.google.com/file/d/0B3HPNP-GDn7aRkVaV3dkVl9NS2M/view, we get that:
S = S_0 * (1 + D / R_0)^F
where D is the amount of deposited aLP tokens.
Then we can calсulcate P(D):
P(D) = (D + R_0) / (F * S_0 * (1 + D / R_0) ^ F)
Thus we can calculate yield at time D aLP tokens are deposited:
APY% = (0.5 * 26 * 100) * (F * S_0 * (1 + D / R_0) ^ F) / (D + R_0)
Total allocated reward for HGET Liquidity Mine V1 is 7500 HGET, which allows us to calculate D_max, the max number of aLP tokens deposited before reward ends:
D_max = R_0 * (( 1+ 7500/S_0)^(1/F) — 1)
D_max = 72147.94
If 7500 HGET was distributed equally among 72147.94 aLP deposits, the yield would be (7500 / 72147.94) * 26 * 0.5 = 135%
Special bonus pool
Those addresses which successfully participated in Hedget auction and purchased tokens will share a special 2500 HGET bonus pool on pro rata basis.
