Oiler’s drilling expedition

Published in

Oiler Network

6 min readMay 10, 2021

Hello Oilers,

Last week on Thursday 6th May, our Liquidity Bootstrapping Program started.

Oiler’s Drilling Expedition is a staking program designed specifically for Oiler’s governance token, OIL. The staking program will last for 100 days and aims to extract 500,000 OIL over this period, which represents 0.5% of the total supply of tokens.

You can DRILL your share of the OIL tokens reservoir by locking your LP tokens. The longer you commit to Drill, the more your Extraction Power grows (exponentially), and the more OIL you will be able to extract after the OILER Drilling Expedition ends.

The expedition lasts for 100 days (660 000 blocks, to be precise).

In order to participate in the Drilling Expedition, we recommend following the step-by-step guide in this article.

Step 1: Joining the Drilling Expedition

As an Oiler, you may want to participate in Oiler’s drilling expedition. In order to do so, your journey starts on our landing page.

By clicking on the “STAKING”, you are redirected to the Expedition page.

Step 2: Adding liquidity

In order to participate in the Drilling Expedition, you have to add liquidity to the pair OIL-USDC on Uniswap v2.

There is a button to Add Liquidity — which will lead you directly to Uniswap

Do not forget that these operations have a cost in gas so prepare some ETH in order to have enough fuel for your journey.

Oiler’s Uniswap OIL-USDC pair is the following: https://v2.info.uniswap.org/pair/0x0e9c8107682ab88604b4fbf847eeeceacf38e9e6

The correct address of Oiler’s token can be found on Coingecko, our contract is the following: 0x0275e1001e293c46cfe158b3702aade0b99f88a5

Please verify it before swapping anything.

Once you’ve added liquidity to the OIL-USDC pool and got your LP tokens, let’s go back to the staking page. LP token is an ERC20 representing your share of the OIL-USDC pool on Uniswap.

Step 3: Drilling

Now that you own LP tokens, you can use them to DRILL and participate in Oiler’s drilling expedition.

In order to participate in Oiler’s drilling expedition, you need to click on Drill and stake in our contracts the amount of LP tokens you feel comfortable locking. Please know that our staking contracts have been audited.

The drilling expedition has set its goal at 500,000 OIL (0.5% of the total supply) to harvest. As an Oiler participating in this expedition, you should know how to predict your harvest.

Your harvest is based on your extraction power. If you decide to participate in the drilling expedition, based on your dedication, you will receive a bonus reward by staying by our side for a longer time.

Each stake you make gives you some additional Extraction Power, which is calculated by the following formula:

Extraction Power = (LP tokens you want to stake) * (blocks you stake ^ 2)

Total extraction power, therefore, represents the total amount of extraction power of the whole network of your fellow Oilers participating in the Expedition.

You can play with the slider to see how numbers change

Here, you might notice that underneath the input form, there is a slider going from 1 to 100 representing the number of days you intend to stake your LP tokens.

Days are converted to blocks using an average of ~13.1 seconds per block (~ 6595.42 blocks per day).

Before joining our drilling expedition, understand that once you join the expedition, whether it is for 1 or 100 days, you should avoid clicking on abandon drilling.

When joining the expedition, you can stake as many times as you want with different locking periods and all these oily rewards will be summed up.

But it’s important to highlight that you can only stake one drill at a time. So if you want to increase or decrease your drilling capacity, you need to abandon the DRILL — and that will cancel the reward for it.

Step 4: Cementing your DRILL

When your wait is over and your DRILL is complete, you gain the ability to cement your DRILL and save the extraction power you’ve produced with it. This enables you to lock in part of the extract you will be able to harvest when the Drilling Expedition is over. But keep in mind — the others are racing against you — your Extraction Power might in the end be shy of that of the others, hence, keep DRILLING!

If you abandon your stake earlier than you committed you will not receive that stake’s reward.

In order to claim the Extraction Power that you are DRILLing, you must wait until the end of your staking period and then CEMENT the DRILL.

You will receive your LP tokens back to your wallet when you do that, and your Extraction Power from the DRILL will be added to your account.

Step 5: Claiming your rewards

In order to claim your DRILLed share of the Reservoir, you must participate in the drilling expedition for the amount of time you decided to stake your LP tokens and CEMENT the DRILLs.

After 100 days, the Drilling Expedition will be over and the Harvest period will begin! You can only start claiming your rewards after the Harvest period starts.

The rewards will be vested over the next 100 days and you can do withdrawals at any block — in a corresponding proportion of the vesting.

Please keep in mind that, the Oiler’s token (OIL) is nothing but a governance token. It has no value.

You can view a more detailed explanation regarding our Staking program in our GitBook: https://docs.oiler.network/oiler-network/staking

If we’re not mistaken, by our calculation, this Drilling Expedition should coincide with the release of something we’ve all been waiting for…

You know the drill 🛢️

Recap

🛢Distribution Amount: 500,000 OIL (0.5% of total supply)

🛢️Distribution Period: 100 days

🛢️Rewards Vesting Period: 100 days

🛢️Launch: UTC Monday, 10/05/2021

🛢️Pool: OIL-USDC: https://v2.info.uniswap.org/pair/0x0e9c8107682ab88604b4fbf847eeeceacf38e9e6

Legal Notice:

This article and any information contained in it is subject to the Legal Notice and Risk Disclosure Statement. Please carefully review the Legal Notice as it contains important legal information, risk disclosure statement, limitations and restrictions relating to the information that we provide, third-party resources and forward-looking statements.

The Oiler Token Liquidity Bootstrapping Event (the “LBP”) is a healthy token price discovery mechanism employed by Oiler. The LBP is not a token sale nor a token offering, and Oiler does not receive any proceeds from the LBP. Assets contributed to the LBP cannot be redeemed or withdrawn by Oiler. Upon completion of the LBP, the assets are technically routed to the Uniswap OIL-USDC pool, and will remain in the Uniswap pool indefinitely.

Risk of Impermanent Loss. While the OIL staking itself does not carry the risk of impermanent loss, providing liquidity to the OIL-USDC Uniswap pool does. Once you have supplied assets to the OIL-USDC Uniswap pool, your position includes two assets — USDC and OIL. If the price of OIL changes compared to USDC, the value of your deposited assets also changes. Impermanent loss happens when the price of your deposited assets decreases compared to when you deposited them, but this loss only becomes permanent if you withdraw your liquidity from the Uniswap pool. In other words, impermanent loss means the less dollar value of your liquidity at the current moment than at the time of deposit. Also, note that your liquidity in Uniswap earns fees proportional to your share of the pool each time a trade happens which partially compensates for the impermanent loss that you may sustain. More information about impermanent loss can be found here: https://academy.binance.com/en/articles/impermanent-loss-explained