We are delighted to announce a new ADX incentive program (a.k.a farm) for liquidity providers: over 2 million ADX will be distributed to people who supply liquidity on the Balancer ADX/yUDS pool, Uniswap ADX/ETH pool and other community requested pools.
\nThe program starts at around 16:40:00 UTC on Friday, Nov 20, 2020 (Ethereum block 11296000) and will last approximately for 30 days until Sunday, December 20, 2020.
\nThe main incentivized pools are:
\nIt’s important to note that AdEx Network will not be participating in ADX farming as a company. Instead, we have transferred all liquidity pool tokens (LP) we hold to our multisig, so the community can verify we are not using them for farming.
\nTo participate, you need to deposit funds into one of the pools, and you’ll receive a special LP token representing your share in that pool. You can then stake this LP token on the Farm page of our staking portal to start incurring ADX rewards. This page also contains links to the respective Uniswap/Balancer pools.
\nRewards will be proportional to the amount of liquidity you’re providing, and updated each block.
\nIf you’re participating in the Balancer pool, you have the option of only one asset (e.g. only yUSD instead of both ADX and yUSD), but keep in mind this will instantly convert your position to the respective 70%-30% split ADX/yUSD that the pool mandates.
\nIn order to increase the awareness of AdEx within the various other communities, we’re allocating a small portion of the LP rewards to pairs that do not include ADX. Each of these pools will be allocated a total of 250k ADX over 20 days.
\nThe list of pairs is as follows:
\nKeep in mind we may be adding more community-requested pools during the course of farming. Please let us know what your favorite Uniswap/Balancer pools are, so we can take them into consideration.
\nAt this point, it is too early to project the APY of this farm, because we don’t know the amount of liquidity that will be staked yet.
\nTo calculate the APY, you have to consider the rewards allocated to a specific pool, time period, and the current value of all LP tokens deposited into the pool. For example, if there’s a total of $200k worth of LP tokens in the pool, 1.5 million ADX over 30 days rewarded for ADX/yUSD, and one ADX costs $0.25, then the APY is (1500000/30*365 * 0.25)/200000 = 2281.25%
Because farming only goes on for 30 days, it’s better to calculate the reward for the farming period itself: (1500000 * 0.25)/200000 = 187.5%.
We use a fork of the MasterChef contract which has been battle tested and ran without significant issues or vulnerabilities on Sushiwap, Sakeswap, PICKLE and others. The migrate method has been removed, which means that only depositors themselves have access to their funds.
Additionally, we’ve subjected it to internal reviews/tests by our team, and found no significant issues.
\nYou can review the contract here: https://etherscan.io/address/0xc0223ab23b519260ae7c52dfb0a3dff65da8385a
\nWe recommend participating in this only if you’re experienced in providing liquidity on Uniswap/Balancer, as it’s riskier and harder than normal staking.
\nYou may be subjected to impermanent loss, as well as to additional smart contract risks from keeping your funds on Balancer, Uniswap, yearn and Curve (in case of yUSD). While all these projects are heavily audited with a solid security track record, more complexity always equals more risk.
\nRecently, we launched the loyalty pool: a staking pool that issues the ADX-LOYALTY governance token.
\nCurrently, ADX-LOYALTY can be minted by depositing ADX to the loyalty pool, but once the maximum of 25 million ADX locked up is reached, the only way to obtain ADX-LOYALTY will be by using public markets, such as Balancer and Uniswap.
\nLater during the farming period, we will be creating a Balancer pool for ADX-LOYALTY against yUSD and allocating a significant amount of ADX (1+ million) to it, enabling farmers to quad-dip into rewards and earn from yUSD (earning interest and Curve swap fees), ADX (earning from holding ADX-LOYALTY), Balancer swap fees, BAL rewards and finally, of course, ADX rewards for providing liquidity.
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