Liquidity Staking Program Live!
Hi everyone,
We have heard you, and we agree. Liquidity is important for a healthy market. Without liquidity, large traders cannot enter the market without slippage, and scaring away large traders is the exact opposite of what we want to happen. Since we cannot provide a huge amount of liquidity ourselves and pay for marketing and exchange listings at the same time, we have come up with a solution — we will incentivize the community to provide liquidity on Uniswap by rewarding them with tokens! This ‘liquidity incentive program’ was audited by Adis Begic, and is now live on mainnet — you can access it here: https://pamp.network/liquiditystaking
Staking your liquidity and receiving rewards is quite simple. First, you must add liquidity to the Uniswap PAMP/ETH pair here (you need ETH and PAMP tokens to add liquidity): https://app.uniswap.org/#/add/0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2-0xf0fac7104aac544e4a7ce1a55adf2b5a25c65bd1
Adding liquidity requires you to send PAMP tokens to the Uniswap pair contract. This will reset the staking time that you have accumulated on the address you are adding liquidity from, so we recommend using a new address for this. In addition, sending tokens to the Uniswap pair contract incurs an 8% burn fee, because we track Uniswap sells via token transfers to the Uniswap pair contract and we enforce an 8% sell fee. However, you’ll find that the rewards are high enough so that you should receive the 8% back within just a few days. Your ETH is never burned when adding liquidity, but the amount of ETH and tokens you own in the liquidity pool may increase or decrease based on the market activity of the token.
When you add liquidity, you will notice that you receive UNI-V2 tokens, which are ERC20 tokens that represent your share of the liquidity pool. If you have 1% of the total supply of these Uniswap liquidity tokens, for example, then you are entitled to a 1% share of the tokens and ETH in the Uniswap liquidity pool. Neat huh? The contract address for these tokens is here: 0x1c608235e6a946403f2a048a38550befe41e1b85
After you’ve added liquidity, visit the liquidity staking page on our website: https://pamp.network/liquiditystaking
First, click on the “Approve” button, send the transaction and wait for it to confirm. Next, you will see that in the middle column your current liquidity token balance is displayed. Enter the amount of liquidity tokens you’d like to stake, and then click “Deposit Tokens.” This sends the UNI-V2 liquidity tokens to the smart contract and allows you to start accumulating rewards. After you enter a number in the “Amount” box, if you click away you will notice that the box below will show you an estimate of your monthly rewards given the tokens that you deposit. No, you do not have to stake for a full month — you can withdraw at any time after two days. That means that your tokens are locked for two days before you can withdraw any rewards. Note that the PAMP team cannot access the liquidity you stake in the contract — it’s yours and only yours.
Please understand that the monthly estimate is just that — an estimate based on your current percent share of the liquidity pool and a staking time of 30 days. Your share of the liquidity pool will change over time as people add and remove liquidity.
Below is the formula used for calculating your rewards when you withdraw:
The current reward adjustment factor is 6000000000000000000000. (6 x 10²¹)
This reward adjustment factor will be adjusted to keep up with regular staking rewards. This formula is also subject to change, depending on how well the program does.
Note that the UNI-V2 total supply is constantly changing, because when users add and remove liquidity, UNI-V2 tokens are minted and burned, respectively. So if the liquidity increases dramatically, your share of the liquidity pool will decrease, so your rewards will decrease (and the opposite happens if the amount of liquidity in the pool decreases).
You can withdraw tokens at any time after 2 days, and the above formula will be used to calculate the token rewards you are owed. To withdraw staked UNI-V2 liquidity tokens, enter the amount you’d like to withdraw in the third column and click “Withdraw Tokens”. The amount of liquidity tokens you have staked in the contract is displayed in the box. Note that when you withdraw any amount of UNI-V2 liquidity tokens, all of your token rewards are given to you based on the above formula and your staking time is reset.
Unlike regular ‘price-reactive’ staking, liquidity staking gives rewards every day regardless of price action, and you do not have to ‘claim’ every day to receive rewards — you simply stake your tokens, and withdraw them when you would like to keep your rewards. We believe that the returns generated by the liquidity staking program will meet or beat returns generated by regular price-reactive staking, but it’s hard to predict exactly because there are so many factors at play (which is why we have a reward adjustment factor).
We have allocated 150,000 PAMP tokens for this liquidity rewards program. Because these tokens will go into circulation over the next 1–2 months, this is effectively an inflationary pressure on the supply, so we have increased the regular inflation adjustment factor to 350 so that inflation from regular price-reactive staking rewards is lowered. This is necessary to ensure a healthy PAMP ecosystem.
Note: Our second OTC sale is over.
Thank you for reading.
