The joint protocol offers several staking pools designed to bootstrap liquidity, reward early protocol users and fairly distribute the initial supply of the P2P token to its community over a long duration.
The token pool allows token holders to deposit their tokens and receive additional P2P tokens over a duration. Token holders can deposit any amount of token and can also withdraw their deposit at any time. The longer a token remains in the pool or the high the deposit, the greater the reward. Rewards are distributed proportionally to the size of the deposit.
The Joint protocol earns fees from all swap events and distributes them through the FeePool. Unlike the TokenPool, which holds only P2P tokens, the FeePool will hold fees denominated in many ERC-20 tokens.
The fees held in the FeePool will be distributed to token holders with a stake in the TokenPool and to owners of staked NFTs.
When a deposit is made into the TokenPool, it is reflected in the FeePool; when a user increases or decreases their stake in the TokenPool, it directly affects their stake and earnings in the FeePool.
Since the tokens allocation of staked NFTs is permanently locked, NFT holders’ stake in the FeePool remains constant.
Liquidity providers are the market makers of the protocol; without this class of users, there will be no liquidity in markets to swap. Therefore, the ListingPool exists to incentivise early liquidity providers until a time when the liquidity provider ecosystem is mature.
At the protocol launch, a portion of the P2P supply will be allocated to this pool. Only liquidity provided to specific markets will be counted.
When a liquidity provider adds liquidity, an equal amount is added to the ListingPool to represent a stake. Likewise, whenever the liquidity provider removes their liquidity, an equal amount is removed from the ListingPool. However, swapped liquidity does not affect their ListingPool stake.
The LPPool is reserved for Uniswap liquidity providers. It rewards early liquidity providers in select P2P pools on Uniswap. Liquidity providers who provide liquidity in the WETH/P2P pool will have a stake in the LPPool proportional to the amount of liquidity they have provided.