SWAM Token Distribution
- Buckle up for the next arising L2 DeFi swap system
SwapMatic has introduced SWAM token to expedite SwapMatic’s development. The distribution mechanism is now in place, and the distribution program is announced in this article (updated on Sep 22, 2021).
Quick link: https://swapmatic.io/
The Rationale and Principles
The rationale for this new DeFi token is the following:
1. To incentivize the provision of liquidity in SwapMatic
2. To provide resources for development
3. To support the continuous growth of the project
4. To maximize the value of the asset to its holders
With these goals in mind, SWAM distribution program was designed in this particular way. The main principles of the distribution approach are:
Ongoing incentive: Instead of one snapshot based on historical contribution, the reward mechanism must support the continuous development and adoption of the service here and now.
Linear rewards: Instead of a daily or weekly quota to be distributed, increased volume of investment in liquidity must increase total rewards allocated. This way, investors or projects do not compete with each other, and everyone benefits from project’s growth.
Variety and options: There must be options to choose from a variety of projects to invest in and contribute. SwapMatic provides equal investment and visibility opportunities for quirky hacking projects (like Invader Finance) and mainstream (DAI, WBTC) or corporate-backed assets (USDC, BUSD).
Variety of chains and platforms: Even though SwapMatic’s home is on Polygon (Matic), the program is built to support multiple Ethereum-based chains.
The program will launch supporting pooling in Ethereum Mainnet and Polygon and staking on Polygon.
Token Distribution
The distribution is divided in five distinct schedules.
Schedule A — Core Liquidity: 40 million tokens (40%) to MATIC liquidity providers for Swapdog.io — the original SwapMatic ‘v1’ — on Polygon. The rate of emission is 100% APR to value pooled and converted to SWAM using the current SWAM-MATIC exchange rate in Swapdog.io.
Formula: (pooled MATIC/365)*2
The primary goal of Schedule A is to attract liquidity into the core SwapMatic service.
Schedule A pools can be found in https://info.swapdog.io/pools.
Schedule B — SWAM Pools: 40 million tokens (40%) to SWAM-xyz liquidity providers in Polygon and Mainnet pools. The emission rate is 100% APR to the SWAM pooled.
Formula: (pooled SWAM/365)*2
Schedule B’s primary goal is to make SWAM token an attractive asset to be used in Ethereum Mainnet DeFi services.
Schedule A pools can be found in https://swapmatic.io/pools.
Schedule C — SWAM Staking: 10 million tokens (10%) to SWAM stakers in Polygon. The rate of emission is 25% APR to SWAM staked.
Formula: (staked SWAM/365)*0.25
Schedule C’s primary goal is to encourage holding SWAM in cases when the user chooses not to invest in liquidity pools.
Staking options can be found here https://swapmatic.io/staking.
Distribution in Schedules A-C takes place on a daily basis.
SwapMatic uses Blocktimeworld.com platform for token distribution. The platform utilizes an innovative Crypto Crawler service that enables an agile and accurate rewards distribution by a dynamic crawl — i.e. taking a snapshot of users’ balances before the daily rewards distribution.
The user does not need to stake LP tokens.
SWAM distribution started on February 25, 2021, and SWAM tokens are claimable starting in the week of March 1, 2021.
The user does not need to pay gas or any other fees for claiming tokens.
Tokens in distribution program are locked in holding accounts until they are mined and claimed according to schedules A to C.
Schedule D — Development: 5 million tokens (5%) to purposes that are direct investments in project’s value or capabilities, such as hiring developers, subcontracting, marketing, or procuring essential corporate services.
Development funds can also be invested in a revenue-generating way, in which case proceedings will be added to the development fund.
If development funds are pooled or staked according to Schedule A-C, these funds are not eligible for SWAM distribution nor count as decision-making votes.
The team makes decisions on the use of development funds but consults the community and SWAM holders as feasible.
Development fund tokens are locked in a holding account and withdraws will be announced in advance.
Schedule T — Team: 5 million (5%) for the team to be used at its discretion, in a way that does not destabilize the project or the market price of SWAM. Team tokens are locked in team transparency account and withdraws will be announced in advance.
Unused tokens for Schedules A to D will be held on publicly announced custody accounts. The unused portion of the Team fund will also be published. That is how the community can observe the transparency of the project and token distribution in real time.
Funds can be transferred between Schedules by community vote, for example, in case where funds for Schedule A run out, and there are a lot of funds left in Schedule B or C.
Supply and Circulation
Maximum supply: 100 million SWAM tokens were minted on Polygon (Matic), and 50% of them were moved to Etehereum Mainnet using cryptographically secure EVMBridge (decommissioned after the initial use).
Circulation: Tokens that are not held on the custody accounts or the Team transparency accounts are considered as current circulation (see here).
Polygon-Mainnet Bridge
SWAM Tokens are mapped between Ethereum Mainnet and Polygon using the bridge — see and use it here.
SwapMatic app: https://app.swapmatic.io/
Farming and rewards: https://app.swapmatic.io/farming/
Links: https://web.swapmatic.io/
