HOPR Liquidity Farm and Bug Bounty
The winning Genesis DAO proposal for the HOPR launch instructed that 5m HOPR tokens from the public allocation of 85m should be reserved as liquidity mining incentives for Uniswap. This post will explain how to earn a share of these extra rewards via the HOPR Liquidity Farm when it comes online soon.
The smart contract which will handle these extra rewards will be securing a lot of assets: not only the 5m HOPR tokens, but also participants’ Uni liquidity tokens, which are needed to remove liquidity from the HOPR-DAI pool. Therefore, before we launch we’ll be running a bug bounty on the immunefi platform to check the security of our contract. This will be open to everyone, but submissions must be made via immunefi. The top reward is $50,000 for finding a critical bug.
We expect the bounty process to take around a week, and we’ll post an announcement when it’s complete and the liquidity farm is ready to go live.
HOPR Liquidity Farm
WARNING: Acting as a Uniswap Liquidity provider carries significant risk of impermanent loss. Proceed at your own risk, and only commit funds you can afford to lose.
The DAO proposal was for 5m HOPR tokens issued as liquidity mining rewards spread over 3 months. This will be implemented as 13 periods of roughly a week (“roughly”, because the time has to be calculated in blocks, and block times can fluctuate slightly), with a total weekly reward of 384,615 HOPR tokens.
To participate in the HOPR Uni Farm, you’ll need to provide liquidity to the HOPR / DAI pool on Uniswap.
There are other pools available which pair different assets with HOPR — only the HOPR / DAI pool can earn a share of the 5m extra HOPR tokens.
When you become a liquidity provider to the pool, you’ll receive an allocation of UNI-V2 tokens.
The contract for these can be found here: https://etherscan.io/token/0x92c2fc5f306405eab0ff0958f6d85d7f8892cf4d
You’ll need to send these UNI-V2 tokens to the HOPR Uni Farm smart contract. The full code of the contract will be linked here once the bug bounty process is complete.
WARNING: To participate in the extra liquidity mining incentives you need to send liquidity tokens to the HOPR liquidity farm smart contract. These liquidity tokens are needed to claim your original assets back from the Uniswap pool. The liquidity tokens can be withdrawn from the HOPR liquidity farm at any time, but the smart contract has not been audited. Proceed at your own risk.
Your UNI-V2 tokens must stay in the HOPR Uni Farm smart contract for at least one full period to be eligible to receive rewards. It’s not sufficient to keep them in for a week: Rewards will be calculated at the end of each period, based on the amount of UNI-V2 tokens in the contract since the start of the period. So if you join halfway through Period 1 and leave halfway through Period 3, you’ll only earn rewards for Period 2 — the only full period you were joined for.
Rewards will be calculated in much the same way as pool fees. If, for example, you contributed 5% of the liquidity tokens for a given period, you would receive 5% of the weekly reward.
You can add or remove tokens at any time, but only tokens which are in the smart contract for a full period will count towards rewards for that period. So if you remove tokens before a period ends, this will reduce your payout as those tokens won’t count for the period at all. If you add tokens, they won’t count until the next period begins (and you’ll need to leave them in the contract for the full period).
The Genesis DAO is currently the largest provider of liquidity. The DAO will continue to provide liquidity, but will not submit its liquidity tokens to the HOPR Farm contract.
Because the HOPR Liquidity Farm will be locking up a lot of assets, we’re being extra mindful of security. Therefore there will be a bug bounty to check for any issues with the contract code. The bug bounty is running on the immunefi platform, and there’s a top award of $50,000 for reporting a critical flaw. You can find the bug bounty here: https://immunefi.com/bounty/hopr
The code which is in scope can be found on Github here: https://github.com/hoprnet/hopr-farm
Once the bug bounty has run its course and the contract is deployed, there will then be a delay of at least 48hrs before the first period begins, to give people time to become liquidity providers and submit their liquidity tokens to the smart contract. The programme will end 582,400 blocks after it begins, or roughly 13 weeks.
This is quite advanced DeFi and won’t be for everyone. But if you’re happy that you understand the risks, providing liquidity will help to shore up the foundations of the growing HOPR ecosystem.
Sebastian Bürgel,
HOPR Founder
Website: https://www.hoprnet.org
Twitter: https://twitter.com/hoprnet
Telegram: https://t.me/hoprnet
LinkedIn: https://www.linkedin.com/company/hoprnet
