How will early-bird SWOP reward be distributed?

In the recent article, we talked about the SWOP token, which is scheduled to launch in early 2021. SWOP is the governance token of the protocol and a special incentive for liquidity providers of SWOP farming pools.

A total of 6 M SWOPs will be minted until 2070, only 3 M of them will be available on the market in the next two years, and 1 M of them is the exclusive pre-launch reward reserved for early-bird liquidity providers, which will become significant stakeholders of Swop.fi.

We got many questions about the details of the early-bird reward distribution, and it’s time to clarify.

Allocation

Everyone who provided liquidity prior to the SWOP launch (that is, has been a share token holder for some time) is eligible for a portion of the early-bird reward.

The reward size is based on both the market value of your liquidity and the duration of providing it. The market value is calculated in USDN at a price in the Swop.fi pool. Prices of tokens move quickly, so the market value is calculated for each block separately — this is the maximum precision available on the blockchain.

Suppose, at height N, you provided liquidity to the WAVES-USDN and WAVES-BTC pools.

The total liquidity in the WAVES-USDN pool is $ 1,500,000, and your share is 2%, so the market value of your liquidity in the pool is $ 30,000. The total liquidity in the WAVES-BTC pool is $ 1,000,000; your share is 5%, its market value is $ 50,000. Your share is defined by the number of share tokens you are holding at height N. At the next height, prices can change, and market values can differ.

Your liquidity values are summed up by all SWOP farming pools and by all blocks from the project inception to the SWOP launch:

The total capacity is calculated the same way:

Finally, your portion of the early-bird SWOP reward is:

Just after the SWOP launch, the governance smart contract will provide information on how many SWOPs you are entitled to.

Vesting

The early-bird SWOP reward will be unlocked gradually within a year after the launch, on a per-block basis.

The average block time on the Waves blockchain is ~ 1 minute, so the number of blocks created during the year is 365 × 24 × 60. The number of SWOPs you can claim will increase with each block by 1/(365 × 24 × 60) of your early-bird reward.

For example, if you are granted 36,000 SWOP, you can claim:

• 1 block after the launch: 36,000 / (365 × 24 × 60) ~ 0.0685 SWOP.
• 1 day after the launch: 36,000/365 ~ 98.6301 SWOP.
• 100 days after: ~ 9863.0137 SWOP and so on.

Looking Forward

If you continue to provide liquidity after the SWOP launch, you will receive an annual SWOP reward. The terms of the annual reward will be slightly different, we will keep you updated.

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