In addition to voting for pool weights, SWOP holders who staked their tokens are getting another tool to influence the project development: selecting new liquidity pools to be added.
For pools added based on voting, special conditions will be available for SWOP yield farming — that is, staking of the pool’s share tokens. Those users who voted for the weight of a pool in the first week following its creation, will be able to reap the First Harvest in SWOP in proportion to their votes in the second week. The yield farming conditions (described in detail below) are set in such a way as to provide a premium SWOP APR, which is significantly higher than in other pools, during the First Harvest week. After that, the new pool will become a regular pool, and all liquidity providers will be able to earn farming reward on standard terms.
How to propose a new pool
Anyone can suggest adding a new pool. To do that, it’s sufficient to pay a fee of 10 SWOP. Any token on the Waves blockchain can be specified as token A, and SWOP, USDN or WAVES can be specified as token B.
Next, SWOP stakers can vote for or against the creation of the proposed pool. Voting lasts for 10,101 blocks or, roughly, seven days. If the pool receives more than 100,000 gSWOP in “Yes” votes and the number of “No” votes is smaller, the project team will create the requested pool within a few working days.
Please, note that only three votes can be simultaneously in progress. If three votes are already in progress, you have to wait until one of the votes is over before you can suggest a new pool.
The project team reserves the right to cancel any vote, specifically, if a token’s name or description is misleading, contains offensive material etc.
How to vote for a new pool
Similarly to votes for pool weights, to vote for or against the creation of a pool, you need to stake your SWOP tokens in the Governance → Staking tab. You will get gSWOPs that enable voting.
The same gSWOPs can participate in all active votes simultaneously. For example, if you have 200 gSWOP, you can vote with all of them to create one pool, to create another pool, and against yet another pool, even if you have already used the same 200 gSWOP in a pool weight vote.
You cannot unstake SWOPs matching voting gSWOPs while the vote is in progress. First, you need to reduce or cancel your vote. Once a vote for the creation of a pool is complete, gSWOPs that participated in it are automatically released, and you can unstake their matching SWOPs (unless they are locked or gSWOPs are used in another vote). Also note that any unstake operation resets the bonus gSWOPs to zero.
First Harvest
The new pool is created with a weight of 0%: you can add liquidity to it without limitations, but SWOP yield farming is not yet available. As of the following voting period, it becomes possible to vote for the pool’s weight.
When the first voting period ends, the First Harvest week begins. During that week, SWOP farming in the new pool is available only to those who voted for its weight.
The maximum amount of share tokens that each user can add to farming is set when the results of the first voting are summed up. This amount does not change during the entire First Harvest week. This number is proportionate to the user’s gSWOPs voted for the pool, with a multiplier:
The SWOP price and the share token price at the end of the first voting are used. The share token price is the value of liquidity in the pool, divided by the total number of share tokens of the pool.
Let’s assume the total number of gSWOPs voting for the weights of all pools in the first voting is 1,250,000. The SWOP price at the end of the voting is $1.2, and the price of the share token is $2. Then the multiplier to calculate the number of share tokens is (1,000,000 / (3 × 1,250,000)) × (1.2 / 2) = 0.16. If your vote for the pool weight was 200 gSWOP, then you can add to farming up to 32 share tokens.
Since the SWOP APR of a pool is inversely proportional to the total value of the staked share tokens, the First Harvest rule brings the yield of the new pool closer to 300%.
After the First Harvest period ends, the limitation on staking share tokens is removed, and the new pool becomes a regular pool.
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