$BGF Liquidity Farming
As $BGF is due to launch shortly, here is an overview of the liquidity farming options that will be available and how the community can participate.
In order to incentivise the provision of liquidity and growth on DEX tradability for the $BGF index, BlockGain Group DAO allocates a portion of $BGF to community members who provide liquidity pools for BGF token. This brief write-up will provide an overview of the structure and process.
How much $BGF is allocated to liquidity farming?
- 3% of all $BGF will be allocated to participants in the liquidity farming programs
- This amounts to a total of 3.2M BGF being distributed over 365 days in 4 time windows.
Where and how can I provide liquidity?
- BGF liquidity provision of BGF/ USDC and BGF/ ETH in Uniswap LPs will be rewarded.
- Instructions on how to add liquidity, or create pairs, can be found on the following posts:
How will the distribution take place?
- The total allocation of 3% will be proportionately distributed, depending on share of total liquidity provision, to all liquidity providers.
- Network snapshots will be taken on a weekly basis in order to define who receives which allocation.
- Distribution will take place on the schedule outlined in the White Paper to all eligible wallets, via a direct transfer, called GAINZ Drop. No active claiming process is required.
- Allocation will take place for all wallets that are eligible to receive at least 10 $BGF, in order to limit transaction costs.
Allocation timeline
In order to make sure that liquidity provision is incentivized continuously over a period of time, the LP allocations will be divided into 4 GAINZ drops.
Participants within each time window will receive a quarter of the total allocation. The first time windows will be shorter thus more heavily incentivized. The subsequent windows will become longer, as outlined below:
- GAINZ drop 1: Day 0–15: 25%
- GAINZ drop 2: Day 16–45: 25%
- GAINZ drop 3: Day 46–180: 25%
- GAINZ drop 4: Day 181- 365: 25%
(Day 0 is 3/15/2021)
Attribution
To incentivize long-term commitment we will assign an equal amount of distribution tokens to each day in a given period, divided between the two USDC and ETH pools based on the size of each pool.
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