Introducing the Lition Uniswap Liquidity Rewards Program
The first Lition ecosystem liquidity mining program is going live on Uniswap!
Lition is launching a liquidity mining program to reward LIT/ETH liquidity providers on Uniswap V2. We will be setting aside 100,000 LIT per reward period for participants. Each reward period will last approximately 1 month.
By incentivizing Lition LPs with rewards, we aim to bootstrap the necessary liquidity to minimize costs/slippage and build long-term value for our ecosystem.
Lition Liquidity Mining Rewards Program
In addition to the 0.3% trading fees earned via Uniswap, whitelisted LPs will also earn their share of the 100,000 LIT tokens, proportionate to how much you contribute to the pool.
How to qualify
- Provide liquidity in the LIT/ETH Uniswap V2 pool for a minimum of 30 days.
- Whitelist your address here.
That’s it!
Additional Information
- A tutorial on how to become an LP is available here.
- 0.5 ETH minimum.
- Start date: immediately
- We recommend reading this article if you’ve never participated as a LP before.
- The available rewards are divided throughout the entire pool. If someone is providing liquidity and does not whitelist their address, their share of the rewards will not be redistributed to the rest of the pool.
- The program will continue monthly unless we announce otherwise.
FAQ
Q: What is Uniswap?
Uniswap is a decentralized protocol for automated liquidity provision on Ethereum. Their open source Ethereum-based DeFi protocol is designed to facilitate instant digital asset exchange between ETH and ERC20 tokens — without relying on third parties or even needing an account.
Q: What are Liquidity Pools?
Liquidiy pools are needed in order to allow large trades on Uniswap. Liquidity providers can be anyone who is able to supply equal values of ETH and an ERC-20 token to a Uniswap exchange contract.
In return LPs are given tokens from the exchange contract which can be used to withdraw their proportion of the liquidity pool at any time. Whenever someone trades on the exchange, the trader pays a 0.3% fee which is added to the liquidity pool and split proportionally between all existing liquidity providers.
Q: Are There Any Risks?
To understand the risks associated with providing liquidity you should read this article to get an in-depth look at how to conceptualize a liquidity position.
Q: How is my pool share calculated?
A snapshot will be taken every 24 hours for the duration of the promotion. Rewards will be calculated on a daily basis according to the snapshots.
The more you stake and the larger share you have relative to others, the greater share of the rewards pool you receive.
100,000 LIT / number of days in reward period = amount of LIT awarded each day. LPs who meet the 30 day minimum pooling requirement will earn a percentage of the daily reward pool based on their percentage of total liquidity at the time of the snapshot.
*The first reward period will last 36 days to allow time for LPs to accrue the 30 day minimum pooling requirement to be eligible for the first distribution. Subsequent reward periods will last 30 days.
Q: When will I Receive my Rewards?
Rewards will be paid out each month for any whitelisted addresses that met the 30 day minimum pooling requirement prior to the payout date.
The first rewards distribution will take place around November 10, 2020.
If your 30 day requirement is met after that date, you will receive all earned rewards during the following month’s distribution.
Q: Are Uniswap Smart Contracts Safe?
V2 smart contracts underwent a four month long audit earlier in 2020. You can also check out a summary of the audit by ConsenSys here.
Disclaimers
Please bear in mind that Lition has no control over transactions, lost funds, or impermanent loss on Uniswap.
Daily ROI is constantly changing as more people participate and new liquidity is added.
The individual tokens you eventually withdraw from the pool can consist of a larger share of ETH than LIT or vice versa.
We reserve the right to cancel or modify this campaign at any time.
