Liquidity Staking V2 Deployed
Approximately 12 hours ago we released our V2 liquidity staking/farming contract for the ETH/PAMP liquidity pool. The other 3 liquidity pools were already deployed with this new contract. In this post, we will discuss the migration process for ETH/PAMP liquidity farmers on V1 and the updates and changes that were made in V2.
First, the migration:
The migration only applies to previous liquidity farmers on the ETH/PAMP pair. When you visit pamp.network/staking/liquidity you will be greeted by an alert that instructs you to migrate your staking time and balance using the 4 buttons in the bottom right box. Click each button in order from 1–4 and wait for each transaction to confirm before clicking the next button. These are interactions on Ethereum and require gas. To offset some of the gas costs, each successful migration will be given 10 PAMP tokens. When migrating, ensure you click only the 4 green buttons in that box, not the grey buttons at the bottom.
The migration is relatively simple, but might be costly depending on when you do it. Check ethgasstation.info for current gas prices — we recommend waiting for about 100 gwei or less before doing the migration to save on gas. However, we are requiring that all migrations complete within two weeks of this Medium article. That means that migrations will be disabled after September 30th.
Second, the updates:
First, we have added the ability to lock your Current Estimated Rewards so they do not change. Because your rewards are calculated based on your percent share of the liquidity pool, if the liquidity pool increases in size, your percent share decreases and so do your rewards. Conversely, if the liquidity pool decreases in size, your percent share increases and so do your rewards. During times of high volatility this can create uncertainty in what your rewards are. You now have the ability to lock your rewards to offset some of the potential volatility. In order to incorporate this feature, we had to change the liquidity staking formula somewhat.
Every time your lock your Current Estimated Rewards, the rewards are moved to your Locked Reward Balance and your Current Estimated Rewards are set to zero. This is done with the formula above — when you lock rewards, ‘days since lock’ is set to zero. However, your days staked multiplier is still there (it is not reset unless you withdraw), so you will still receive the benefits of the multiplier even after you lock. This means that you have to wait 24 hours to receive rewards after you lock, so if you want to lock it’s recommended that you wait until your days staked timer moves to the next day. We have also increased the max multiplier for ETH/PAMP to 60 days. The three other pools are at 30 day max multipliers, because we are unsure if we will keep the pools for longer than 30 days.
Second, we have added the ability to withdraw rewards without withdrawing UNI-V2 tokens. Previously, to do this we told users to withdraw a very small amount of UNI-V2 (like 0.000001) to receive rewards, but this is no longer necessary — simply click “Withdraw Rewards” and your Current Estimated Rewards and Locked Reward Balance will be transferred to you, and your UNI-V2 tokens will continue to stake in the contract. Note that this will reset your days staked and days since lock, however.
Third, we have added the ability to reinvest rewards directly from our contract (without needing to withdraw them or reset anything). This feature is in the smart contract and is working, but is not implemented in the front-end yet. When this is completed, you will be able to move your Current Estimated Rewards or your Locked Reward Balance into the UNI pool to reinvest them. Note that Uniswap requires a 50/50 proportion of both tokens in the pool, so you will need to provide the same value of the other token (or ETH) to reinvest rewards. We will announce when this feature is ready.
Finally, we have moved the liquidity staking/farming rewards to inflation instead of team-funded. The liquidity farming protocol was important for our price-reactive staking protocol to function properly, but the team does not have enough tokens to fund it forever, so we have integrated liquidity farming into the Pamp Network protocol. There have also been some other minor bug fixes that came with this update.
We have also lowered the rewards on the other 3 pools (PAMP/LINK, PAMP/USDT, PAMP/BONK) to be more in-line with expected 1-month returns of 50% (PAMP/ETH was not changed). The first week of these pools had higher rewards to be promotional, and the rewards adjustment factor has now been reduced on these pools — however, they still offer ~100% monthly returns at the moment, so if the pools do not double in size a further reduction of the adjustment factor may be necessary in the future. You can hedge against this by locking your rewards.
We hope this post clears up some confusion about our liquidity farming programs. Thank you.