Polars farming mechanics

In previous articles, we looked at the basic concept of polar tokens, the technical structure of the Polars platform, and the distribution of trading fees. We also introduced you to our roadmap and introduced you to Pol Governance Token. In this article, we would like to explain the mechanisms by which users can accrue management tokens as a reward for their activities on the Polars platform.

70% of all Pol tokens will be distributed among the users of the Polars platform in the form of rewards for their activity. According to our assumptions, the distribution will occur over several years, perhaps about 5 years. The distribution speed of tokens is directly linearly dependent on the activity on the Polars platform.

We did not tie the rate of distribution of management tokens as a reward to blocks of the ethereum network or to a specific time. This was our deliberate decision, since in our opinion, this will allow us to develop primarily the product and platform, and not temporary hype and a possible bubble in the market. The distribution speed of tokens depends on the trading volume, TVL, user activity in voting, testing new functionality and marketing activities. Thus, the growth in the number of tokens in circulating circulation, in our opinion, will be fundamentally supported by real value.

Rewards in POL tokens are distributed for the following activities on the Polars platform:

Providing liquidity of the polar tokens on the Polars platform
Trading polar tokens on the Polars Platform
Trading polar tokens from invited referrals on the Polars platform
Participation in custom and fundamental votes on the Polars platform
Participation in testing new functionality of the Polars platform as well as participating in marketing activities in order to popularize the Polars platform

It should be borne in mind that as the platform develops, new activities may appear, for which it will be expedient to reward users, but decisions of this level can be made exclusively through fundamental voting among all holders of governance tokens.

Let’s take a closer look at each of the above mechanics of custom management token rewards:

Liquidity Provider Rewards

Half of all POL tokens that are intended for custom rewards will be distributed to polar token liquidity providers. That’s 700,000,000 POL. The intensity and size of charges directly depends on the amount of liquidity provided. More liquidity means more rewards.

The accrual is based on a formula that takes into account the following data:

% of the provided liquidity is considered from a specific number of BLACK and WHITE tokens (1,000,000,000 WHITE and 1,000,000,000 BLACK)
The same percentage of the total amount of tokens that are intended for distribution as a crop for market makers is considered (700,000,000 POL).
This percentage of POL tokens is credited from 0.3% to 3.6% per day.
For the first 3 months of POLARS, we will stimulate market makers with increased POL accrual rates. We start with 3.6% per day. We reduce the percentage by 0.3% every week. Until the moment when the percentage becomes 0.3%.

For example, all market makers for the current day have placed 1,000,000 WHITE tokens and 1,100,000 BLACK tokens in liquidity pools. This is 0.105% of the base used value of BLACK and WHITE tokens (1 billion each). Therefore, market makers for the current day will receive a total of 4,410 POL to 52,920 POL in the form of harvest.

Trading Volume Rewards

15% of all POL tokens that are intended for user rewards (210,000,000 POL) is intended to be distributed to users as a reward for their trading volume on the POLARS platform. For every $ 10,000 of trading volume, the user receives 5 POL. We consider this a very fair reward, since it is thanks to the users who trade, place bets and make arbitrage trading that the Polars platform receives income and develops.

Referrals Trading Volume Rewards

The Polars platform has a one-level referral program, which is tied to the trading volume of the invited referral. 15% of all POL tokens earmarked for custom rewards (210,000,000 POL) are for distribution as referral rewards. These tokens will be evenly distributed among the agents who have invited referrals and encouraged them to trade on the POLARS platform. The distribution formula depends on the referral’s trading volume. The user will receive 5 POLs for every $ 100,000 of the trading volume of his referrals.

Voting Rewards

10% of all POL tokens that are intended for custom rewards (140,000,000 POL) is intended as a reward for participating in any type of voting. For participation in each vote, 0.1% of all remaining tokens intended for voting rewards are distributed among the voters. For example, during the first vote, 14,000 tokens will be distributed among the voters (0.01% of 140,000,000 POL), in the second vote, 13,998.6 tokens (0.01% of 139,986,000 POL) will be distributed, etc.

Testing and marketing activities rewards

10% of all POL tokens that are intended for user rewards (140,000,000 POL) is intended to reward platform testers, as well as reward for marketing activities.

Thus, after a while, users who are more active on the Polars platform will increase their influence on ecosystem governance due to the fact that they will increase the volume of POL Governance Token. We consider this to be a fair model. Provide liquidity, trade, place bets, invite referrals, vote, test and promote and grow your influence within the Polars platform.

Polars

The new DeFi platform for creating secure polar tokens, the price of which depends on the results of specific external events. Within the POLARS platform, users can buy, sell and exchange polar tokens, as well as participate in the distribution of the platform’s commission income.