NII Token Pool Available on Uniswap — Unique Incentives Announced
In response to significant community demand, we will be creating an exciting incentivisation programme for Uniswap liquidity providers into the NII/ETH pair. Liquidity providers will receive a proportional share of 100 million NII tokens each month. Read on to find out more!
The NII token contract is at this Ethereum address:
0x7c8155909cd385F120A56eF90728dD50F9CcbE52
Community Demand
You asked, we listened. We know that Uniswap has been a hot topic of conversation within our lively Telegram group, so today’s announcement should not come as a surprise. Similarly, our community members have been speculating about how we plan to use the 20% of nahmii’s monthly airdriip which was previously allocated to ETH holders. Half of these tokens, equivalent to 100 million NII per month, will be used as an incentive to encourage liquidity providers for the NII/ETH token pair. How will this work? The answer lies in our familiar ‘balance block’ concept, which is used to calculate HBT holder’s allocations within the airdriip already.
Balance Blocks
To understand the new incentive mechanism, we recommend that you familiarise yourself with the way Uniswap works, in particular liquidity provision. A solid starting point is the Uniswap documentation itself, found here.
Balance blocks are nothing more than a way to track both the size and duration of someone’s contribution to something — be that holding HBT tokens for the airdriip or liquidity provided on Uniswap. Ultimately, they represent the fairest possible way to calculate incentive pool shares.
An Example
Consider the following example: Alice provides half of all the liquidity on Uniswap for the NII/ETH trading pool. If Alice continues to provide exactly half the liquidity for the whole airdriip qualifying period, she will receive half of the incentive pool as a result (50 million NII tokens). If Alice had stopped providing liquidity halfway through the month, her share of the incentive pool would drop proportionally (to 25 million NII tokens, assuming that someone else replaced her contribution).
The Alice example shows how the duration of her contribution matters for the incentive pool. Now imagine Bob provided half of the liquidity for the NII/ETH token pool for the full qualifying period. Bob, like Alice in the original example, would receive half of the incentive pool as a result (50 million NII). If Bob had provided only a quarter of the liquidity during the same period, he would only receive one quarter of the incentive pool (25 million NII).
The Bob example shows how the magnitude of his contribution matters for the incentive pool. In other words, balance block calculations can measure both the size and duration of a user’s liquidity contribution during the qualifying period.
Start Date
This new incentive structure will begin from the first block on 16th October (UTC). It is at this point that we will begin to track balance blocks. Payments to liquidity providers will be made using nahmii directly, as part of our monthly airdriip; the first airdriip including this new incentive will take place in the November airdriip, reflecting the balance blocks accrued over the previous couple of weeks. For the foreseeable future, this will continue on a monthly basis, but we reserve the right to change the format of this incentive. As always, we will give sufficient warning if we do plan on making changes. For more information about the airdriip, including a detailed explanation of the balance block concept, please see the nahmii Airdriip FAQ here.
We have a number of exciting announcements to come over the next few weeks, including details of the first commercial application of nahmii. In the meantime, you can connect with the NII community directly through our Telegram group and twitter account.
