Earn liquidity rewards for providing liquidity
A portion of protocol fees and native token inflation that is captured by block rewards are allocated as incentives to liquidity pools that have been selected via on-chain governance.
This means that liquidity providers (LPs) for these pools can receive additional rewards in addition to the fees earned via maker rebates. Rewards are distributed proportionately to the amount of liquidity provided.
The amount earned by liquidity pools is governed by the LP reward curve, and is given as a ratio of the each block's rewards.
The reward curve can be found at the following API / RPC endpoint:
- "start_time": The time at which liquidity rewards will begin to be distributed
- "initial_reward": The reward ratio in bps (out of each block's rewards) to be distributed to liquidity pools
- "interval": The interval in seconds before the reward ratio is reduced (from
- "number_of_reductions": The number of times that the reward should be reduced
- "reduction": The amount in bps to reduce the reward at each
interval(as a multiplier to the current reward)
- "final_reward": The reward after
number_of_reductionsreductions have been done
- "reductions_made": The number of reward reductions made so far.
Currently, a static 25% of block rewards are allocated to liquidity rewards, for a period of 12 weeks, after which it drops to 0%.
The reward weight for each pool can be found within the pool API / RPC endpoint here:
That is to say, given:
The reward weight
for liquidity pool
can be expressed as: