The Risk Labs / UMA liquidity mining program has run five months on the yield dollar tokens. It began with a pilot program which was subsequently extended. The program was moved under the umbrella of developer mining, with uLABS as the developer responsible for distributing rewards.
This present announcement explains the first implementation of “dApp mining” and details for the upcoming rollover.
dApp Mining and the new OpenDAO Yield Dollar Interface
uLABS, the product arm of UMA, shepherds the yield dollar token contracts and manages the liquidity mining program. Half of the rewards for the Yield Dollar tokens are allocated for liquidity mining, with the other half unspent.
Starting on Jan 3rd at 23:00 UTC, uLABS will pass along 30% of its earned developer mining rewards as dApp mining rewards. This comes from the previously unspent rewards, and rewards for miners have not changed.
DApp mining is a growth mechanism available to any developer who deploys a whitelisted contract. Contract deployers can reward any dApp builder who attracts customers to mint synths.
In this case, uLABS will be rewarding all dApps responsible for minting Yield Dollars with 30% of the rewards associated with synths minted by those dApps.
OpenDAO has already created a dApp mining interface and will begin receiving rewards for synths minted after Jan 3rd when the program officially begins. Here is a promotional video their team put together to explain the Yield Dollar token.
OpenDAO’s foray into the yield dollar token the first step on their roadmap to launch stablecoins backed by real-world assets on UMA protocol.
DApp mining on the yield dollar products is a non-exclusive opportunity for any developer. We expect to see other interfaces spring up to present different products. Join UMA’s Discord community to participate or get help with liquidity mining.
Christmas Rollover Instructions
All necessary links are included at the bottom of this article.
The rollover of the uUSDrBTC-DEC and uUSDwETH-DEC tokens will be similar to past rollovers. The rollovers are designed to encourage liquidity providers to exit their yield dollar positions before expiry, and provide liquidity in the new contracts. There will be a four-day overlapping rewards period.
The new token names have been changed to make them easier to understand, with “YD” short for Yield Dollar.
uUSDrBTC → becomes → YD-BTC-MAR21
uUSDwETH → becomes → YD-ETH-MAR21
The dates for the rollover are:
- December 25th, 23:00 UTC: Liquidity rewards begin on the YD-MAR Balancer pools
- December 28th, 23:00 UTC: Liquidity rewards end for the uUSD-DEC Balancer pools
- December 31st, 22:00 UTC: The uUSD-DEC tokens will expire
See these events in the UMA Protocol calendar.
The rollover steps for farmers who sponsored and minted uUSD are:
- Withdraw liquidity from the uUSDwETH or uUSDrBTC pool. Note: Do so in the same fashion as you deposited, either as a single asset or multiple assets. If you withdraw as a single asset you will be automatically selling the other asset into the pool. Large positions may have high slippage if they are withdrawn in a single transaction, so it may be best done gradually.
- Visit tools.umaproject.org and choose the contract you have a position with. Navigate to the “Manage Position” tab, then choose “Redeem” from the dropdown. Redeem your entire position. Note: Due to pool rebalancing, you may have more or fewer tokens than you need. If you need more, you must purchase them from the pool. If you have excess, you can either sell them into the pool or redeem them after expiry.
- Navigate to either UMA’s EMP tools or the new OpenDAO interface to mint the new Yield Dollar tokens.
- Contribute liquidity to the balancer pools: YD-BTC-MAR21 and YD-ETH-MAR21
For those who have purchased uUSD from the pool to farm:
- Withdraw liquidity from the uUSDwETH or uUSDrBTC pools. You can withdraw as a single asset, USDC, and that will automatically sell your uUSD back into the pool. Be mindful of slippage.
- Navigate to the YD-BTC-MAR21 or YD-ETH-MAR21 pools and deposit your USDC, which will auto-purchase the tokens in equal proportion. Again, be mindful of slippage.
Join UMA’s Discord for questions about dApp mining or liquidity mining.