The Joint Protocol listing reward program enables liquidity providers (or traders) to earn P2P tokens just for adding liquidity to a market.
When a liquidity provider adds liquidity to a market, an equivalent amount is added to the listing staking pool.
What is the Listing Pool?
The listing pool is a unique staking pool reserved for liquidity providers. It allocates stakes to users who add liquidity to verified markets.
When a liquidity provider adds liquidity to a market, the same amount is automatically added as a stake in the Listing Pool. Similarly, if the liquidity provider removes liquidity from a market, the equivalent amount is also removed from the listing pool.
- User A adds 10 ETH to a market.
- 10 ETH is automatically added to the listing pool for User A.
- User A stake in the listing pool will begin to earn P2P tokens.
- If User A removes 2 ETH from the market, 2 ETH is also removed from the liquidity pool.
Note The ETH in the listing pool are points, not real tokens.
How does swapping affect my listing pool stake?
A liquidity provider’s stake is not reduced after a successful trade. It is only reduced when the liquidity provider manually removes its liquidity.
To continue to earn P2P rewards, LPs must keep their liquidity in a market.
Furthermore, successful trades result in a permanent stake in the pool. For example, if an LP add 50 ETH liquidity, they will get 50 ETH worth of stake in the listing pool. If the LP trades all 50 ETH, the 50 ETH stake becomes a permanent stake.
What are the criteria for earning?
Add liquidity to a verified market and leave the liquidity for as long as you can. The longer your liquidity remains in the market, the more reward you earn. Also, complete swaps to receive the trading reward.
The listing pools across all supported chains will be funded with 5% (50,000,000) of the initial token supply. It is expected to last for 720 days; 69,444 P2P will be released daily.
How are rewards calculated?
The listing pool is designed to run for 720 days. It will allocate rewards to liquidity providers based on the ratio of liquidity contributed to the protocol. The more liquidity a provider contributes, the higher the reward.
(x / y) (a / b) c
- x: User A stake
- y: Total stake
- a: Total reward
- b: Program duration (in seconds)
- c: User A stake duration (in seconds)
- Supposing program duration is two (2) days (172800 seconds);
- and the total reward is 1000 P2P
- and the total stake is 100 ETH
- User A has a stake of 50 ETH on day 2 of the program (86400 seconds).
User A reward is 250 P2P:
(50/100) (1000/172800) 86400 = 250