OccamX Liquidity Mining Campaign

Published in

Occam.fi

5 min readMar 28, 2022

Ladies and Gentlemen, we have arrived!

The biggest chain-wide liquidity mining campaign is about to kick-off following the removal of Milkomeda’s whitelist in the coming days and OccamX will be its beating heart through the carefully designed OCX Liquidity Mining (LM) campaign.

We have designed the campaign to be Big and Inclusive. We want everyone to have an equal opportunity to participate and every Lovelace of liquidity provided to have the APY it deserves.

OccamX will launch today, Monday 28th of March, at 6 PM CET. It is official.

The OCX LM campaign will follow shortly. We recommend reading every letter below carefully to stay tuned and NOT to miss out on it.

Now let us dive deeper into how the liquidity mining campaign will work.

Some TL;DR one pager can be found here.

The OccamX LM Campaign

Definition:

The liquidity mining campaign is a continuous token distribution event — where liquidity tokens of eligible OccamX pools and when staked by users (LPs) — are rewarded with distributions of OCX inflation with a block-by-block frequency.

How it works

OccamX is decentralized. Anyone can open a pool. LM rewards liquidity providers in various pools with OCX. But this does not mean that any pool will participate in the LM campaign.

Any pool has a weight. It can be 10, 5, 0.5 and 0. Some allocation of OCX is released to the market with every block. The weight of a pool determines how much of this inflation the LPs of a given pool receive.

A simple example: Assume every second OccamX releases 100 OCX into the market. These are distributed across the platform’s LPs. This is called the LM campaign. But how much does every LP get? It all depends on the number of pools and the weights. Assume we have one 10x pool, two 5x and ten 0.5x — the total weight will be 10 + 5*2 + 0.5*10 = 25. So there are four OCX (100 / 25) going to every unit of weight every second. It means that:

Pool with 10x weight will have 40 OCX/sec rate
Pools with 5x weight will have 20 OCX/sec rate
Pools with 0.5x weight will have 2 OCX/sec rate

The OCX ‘inflation’ allocated to every pool will be distributed between its LPs in accordance with their shares of the pool (on a liquidity weighted basis).

NOTE: the numbers above are just examples. Check this model for the actual parameters.

What is OCX used for?

Initially, the weights are governed by the OccamX DAO. Upon the OCX distribution and staking, this function will move to the community (think Curv governance for reference). This is the key component of OCX utility.

Another major part is fee redistribution. For every swap, the taker pays 30 basis points. Out of these, 25 basis points remain in the pool as a reward for LPs, while the remaining 5 basis points are collected in a special pool and are periodically used to buy back OCX from the open market and distribute them across OCX stakers. The longer one commits one’s OCX stake for, the bigger his or her voting power.

The launch

There are four pools that OccamX will open with: mADA/USDC, mADA/USDT, mADA/WBTC, mADA/OCC. These pools will each have a weight of 10 as we see decentralized liquidity in major assets versus ADA as the key to set Cardano’s DeFi free.

OccamX is entirely decentralized and, thus, anyone can open a pool. What weight would a new pool receive? It all depends on the liquidity resting inside. Any pool with >US$1m worth of TVL will automatically get a weight of 5. Any pool with TVL >US$500k will have a weight of 0.5. Anything below that will have a weight of 0. Only the DAO can give a weight of 10, regardless of liquidity provided.

With that in mind, make sure you keep an eye out to see which pools really begin to accumulate TVL, so that you can reap most of the rewards that are up for grabs!

OccamX has already been seeded with substantial amounts of liquidity. We have secured US$16m across our mADA/USDT and mADA/USDC pools, nearly US$2m on mADA/WBTC and more than US$500k for mADA/OCC. What does this mean for our coming miners? Well, we are glad you asked! Beginning with the mADA/USDT and mADA/USDC pool APYs, they will begin at 66.67%; for mADA/WBTC it will start with a 333.33% aPY and finally for the crown jewel, mADA/OCC will start at over 1066.67% APY.

A small note re APYs: the APYs as reflected on our interfaces and — as communicated publicly — are calculated based on the current LM campaign parameters, current liquidity resting in OccamX’s pools and using monthly compounding with an assumption that OCX will make 2x to its listing price of US$2. These parameters can be played with in a simple model we have shared with you above (you need to download or copy the google sheet in order to change the parameters).

When can you farm it? Easy. The moment Milkomeda opens its doors to everyone. We are committed to fairness, equity and, of course, our community that has been with us for a whole year by now. This is why we will not begin the LM campaign until EVERYONE has an equal chance of taking part in it. We expect that to happen by the end of the coming week once Milkomeda lifts any whitelisting restrictions.

Until that time, we recommend everyone to practice moving liquidity on and off the Milkomeda chain; try using the Flint wallet and bridges, such as Nomad, Multichain and Celer.

Note that, as we have mentioned earlier, the LM rewards will become claimable the moment we release the OCX token. There is one single requirement for that to happen: OccamX must reach US$250m in TVL. We will all benefit if there is deep liquidity upholding the OCX price upon its listing.

Some concluding remarks

We want to reiterate, the OccamX DEX will open its doors Monday together with Milkomeda’s mainnet launch. Mining of OCX (and other coins) begins as soon as the whitelisting restrictions are lifted by Milkomeda.

We have finally arrived at the summit of the mountain, but it looks like the journey has only just begun! Prepare yourself and be ready when the time comes. There is almost no time left:)