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Yield Farming, DAO Staking & Sushi LP Incentivization Programs with LeagueDAO

Leaguedao.com

We are excited to roll out the LEAG governance token with the launch of yield farming and liquidity provider incentivization. It can seem like a lot to process, so let’s go over the dynamics of each so everyone understands how this all works.

Introduction

In order to facilitate a fair and inclusive distribution of $LEAG tokens to future protocol participants, LeagueDAO is proud to announce its upcoming multi-phased liquidity mining program. We will be releasing three sequential staking contracts with distinct specifications around $LEAG token distribution:

  1. Yield Farming
  2. Liquidity Pool Incentivization
  3. DAO Staking

Below we will explain the parameters of each contract, the differences between the two, and the rationale behind their respective mechanism designs.

Yield Farming

The first Yield Farming epoch will begin on Sunday, October 10th, 2021. After the first epoch ends it will trigger the start of the Sushi LP incentivization pool that will reward liquidity providers for providing liquidity.

The yield farming contract is the first mechanism delivering initial $LEAG token distribution to the community.

This contract holds 8% of the total supply and will be distributed to community members who stake XYZ, BOND, SNX, IONX, ILV, LINK, ENTR and SUSHI Tokens.

How do I farm?

To start farming you will need to visit our yield farming page and connect your wallet. Next you need to pick at least one of the 8 tokens and enable it to be used. To enable it, you will have to pay an Ethereum gas fee that will be relatively cheap. Once enabled you will be able to stake into the farm you enabled and start earning $LEAG.

Remember the rewards are accrued in epochs which means you must stay until the end of the epoch to earn your rewards but you do not have to be entered at the beginning to be eligible for accruing rewards.

Once you are staked in the YF pool you can add tokens as you please but remember your rewards are affected if you remove tokens. Make sure to refer to the information on epochs in the docs if you don’t understand this.

We will explain how to claim at the end of this article so everyone reads all this information.

Liquidity Pool (“LP”) Incentivization

LP Incentivization will be hosted on SushiSwap.

To start farming LEAG tokens, you need to provide liquidity to SushiSwap USDC/LEAG pool, get a proof of liquidity token called USDC_LEAG_SUSHI_LP, and stake it in the yield farm.

Staking that LP token will earn you LEAG rewards according to your pool share ratio.

USDC/LEAG LP Pool will be the last farm to launch, after the 2nd yield farming epoch launches.

DAO Staking

Dao Staking rewards is designed as an extra incentive for the early DAO participants. By staking your LEAG tokens in the DAO, in addition to voting power, you also receive rewards from the DAO rewards pool.

We have currently preloaded the pool with 60,000,000 that will run for 100 weeks. The amount of your $LEAG staked against the total amount of vLEAG staked will determine your percentage of the rewards. Below you can see the breakdown of the specs.

DAO Staking Pool Details

Our staking contract is distinct from the Liquidity Mining & Yield Farming contract system. This staking contract and rewards work in a continuous manner. So you stake for 5 days you get 5 days worth of tokens. You can come and go as you please. You will manually need to claim your reward $LEAG tokens though.

How do I claim?

As seen below, the yield farming claim button is on the top left and will prompt the following screen. On this screen you will be asked to claim LEAG from the rewards pools you have staked tokens in.

Remember you will need to claim all of these pools individually and will all cost a gas transaction to claim.

Epochs

One last and very important bit of information to read is how the week-long epochs will work.

Essentially the yield farming pools and LP pools will work very similarly from a standpoint of how the deposited tokens will gain rewards. To fully understand the epochs and how they will work I would refer to the docs and click here.

The deposit works like this: for the current epoch, the amount that is taken into consideration when the reward is calculated is relative to the time when you deposit it.

If you enter when there’s only 20% time left, your effective balance will be equal to the actual balance * 20% where the multiplier is exactly that 20%. For the next epoch (and any subsequent epoch), the multiplier is set back to 100%.

If you deposit some more, the multiplier will be less, but the effective balance will always be greater than the previous. For example: you start the epoch with 100 USDC, then deposit 100 USDC at exactly 50% of the epoch => your effective balance for this epoch is 150 USDC = 100 + 50% * 100 or 200*75% — 75% being the new weighted-average multiplier.

If you exit the pool early you will forfeit rewards for the funds that you have removed.

This mechanic works for the USDC/LEAG Pool and Yield Farming Pools but not for the DAO Staking Pool where you get rewards for the time you staked in the pool.

Get ready

As you see, there are a lot of farming opportunities coming soon. Head to the website to get prepared and decide on where to dive in.

Make sure to follow us on Twitter and join our Discord Community Server to stay on top of the latest updates.

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LeagueDAO is owned and operated by a community of misfits — degens, nerds, sports fans, and athletes — fed up with old school fantasy sports and motivated to push the boundaries of NFTs and web3 technology. As a DAO-first project, LeageuDAO members are collectively driving dec

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