DX25 LP Incentive Program

DX25 is a cutting-edge decentralized exchange (DEX) that simplifies cryptocurrency trading. To mark the launch of our mainnet, we’re excited to roll out a brand-new incentive scheme to reward our early Liquidity Providers (LPs). We’ve streamlined the bonus system, making it accessible for everyone, and even integrated a handy calculator to help you maximize your profits.

Curious to learn how you can secure additional Annual Percentage Return (APR) on your assets? Read on!

What is the Incentive Program All About?

Every 28 days, DX25 spotlights a curated set of Liquidity Pools that offer added incentives for participants. By opening a position in one of these select pools during a 28-day cycle, you’ll qualify for future airdrops of $DX25 tokens.

Remember, the list of incentivized pools refreshes every 28 days. Stay tuned to our social channels and Medium blog for regular updates.

To make navigation a breeze, we’ve created a dedicated section under the “Liquidity” tab, listing all the spotlighted pools for the current 28-day cycle.

Important: The incentives are not an augmentation of your liquidity fees. Standalone bonuses will be added to your crypto wallet once the incentive program concludes.

Why Should You Participate?

The DX25 incentive scheme is an unparalleled opportunity for early LPs. You could earn additional APR on your deposit, and all this without the need for incessant tracking or exposing your funds to high risks. Here’s the lowdown:

• We allocate $DX25 tokens every 28 days.
• Each chosen Liquidity Pool will receive a portion of the bonus $DX25 tokens, and they’re yours for the taking! To benefit, all you have to do is offer liquidity in the pool of your choice.
• On top of the $DX25 token bonuses, you’ll also earn transaction fees from your Liquidity Position, boosting your total profits.

By wisely placing your assets, you can aim for astonishing APR, far outstripping anything you’d earn via traditional banking or other decentralized options.

Note: The estimated value calculation is based on an assumed price of 1 $DX25 token being $1.50 during the Token Generation Event (TGE). We’ll keep our community updated about the forthcoming TGE, so make sure you’re subscribed to our updates to not miss out on any airdrops!

How to Get Started: A Step-by-Step Guide

1. Join DX25: Before you can participate in the Incentive Program, you must connect your wallet to the DX25 platform. For an easy walk-through, refer to our Mainnet Guide.

2. Choose a Pool: Navigate to the “Liquidity” tab and pick a pool from the “Boosted Pools” list. This will lead you directly to a pre-configured liquidity provision tab. For demonstration, let’s say you choose the EGLD/USDC pool:

At the top of this page, you’ll find a specialized bar that tells you the amount of bonus $DX25 tokens designated to the pool and when the present incentive period wraps up. In our example, the USDT/USDC pool is in for an additional 4,000 $DX25 tokens between October 17 and November 13.

3. Configure Your Position: You’ll be able to adjust your new liquidity position by selecting your Concentration, choosing your Fee Tier, and deciding the number of tokens you want to stake.

But here’s the kicker: we’ve integrated a real-time calculator that estimates your prospective daily profit based on the parameters you enter. This way, you know your likely earnings even before you jump in.

4. Let’s do a little math: Our investment was about $1900, and our profitability, not counting harvested fees, is 17.5 $DX25/day. Let’s multiply that:

17.551 (tokens/day) 365 (days in a year) $1,5 (estimated price of one $DX25 token) = $9,609

This is approximately how much money our position will generate in one year if the market circumstances do not change.

Factors That Influence Your APR

Fee Level Multipliers

Let’s keep it simple. Each fee level in a Liquidity Pool has a unique bonus token multiplier. Initially, the lower fee tiers make the most sense for LPs as they’ll reduce trading costs and be more appealing to traders. As the platform grows, these parameters may balance out.

Multipliers table:

As we can see in our example, if we choose another fee level, let’s say, 0.32%, then our profit shrinks:

The Size of Your Position Vs. Total Pool Value

Here, things get a bit mathematical. To put it simply, your share of the incentive pool depends on how much liquidity you provide compared to the pool’s total liquidity. So, your APR will be proportional to the size of your stake compared to the Total Pool Value (TPV).

First, let’s imagine that you are the only Liquidity Provider in the pool. That’s a utopia, but this way, you’ll better understand.

So, how do you calculate the optimal position size to drain the pool for yourself if you’re the only provider in it? We’ll break it down on the example of the EGLD/USDC pool:

4000 (allocated tokens in the pool) $1,5 (estimated price of $DX25 token) 13,035 (approx. number of incentive rounds/year) = $78,210 (total value of allocated tokens during a year)

Now, we must calculate the size of the position, which, given the exemplary 100% APR, will be able to fully “absorb” this amount of money. A piece of cake:

$78,210 / 2 (times our position will grow after a year passes) = $39,105

So, let’s wrap up. If you’re the only LP in the USDT/USDC pool, you need to open a position with a total value of $39,105 to get all the allocated tokens for yourself.

However, we need to understand that the chance of you being the only LP is miserable. Thus, every user will compete with other market makers to chase allocated $DX25 tokens during each incentive round. In this case, once the total amount of locked funds overcome the $39,105 line, every user will get a shortage in APR since the amount of tokens won’t cover the created demand.

Note: Of course, we have shown a simplified example of calculations. In fact, there is much more math and pitfalls of the world of numbers inside, but you will not be able to influence them. However, feel free to leave your comments, and if this topic interests many of you, we will tell you more about it! 😉

Other Important Information and FAQs

• Out-of-Range Positions. Positions falling out of the specified range will not qualify for bonus rewards.
• Reward Visibility. We’re currently developing a feature to allow you to view your accumulated $DX25 rewards in real-time. Stay tuned for updates!
• APR Limit. While the system is designed to offer a precise APR, it’s important to note that this is the maximum cap.
• Calculator Disclaimer. The built-in calculator offers an immediate estimate based on current conditions. It should not be considered as a guarantee of future returns.
• Rewards will vest over a 6-month period from the date they are received.
• The program is set to expand significantly after DX25’s TGE.
• The estimated price of the $DX25 token of $1,5 is based on the results of the pre-seed funding round: that’s the price paid by large funds and partners per token.
• Our partners have an opportunity to boost their pools on the DX25 with their own tokens.
• DX25 reserves the right to revise the terms of the incentive program before the start of each new incentive round, taking into account the nomenclature of boosted pools, the number of bonus tokens, and the order of their distribution.

Conclusion: Don’t Miss Out on this Opportunity

The DX25 Liquidity Provider Rewards Program offers an unparalleled chance to maximize your earnings in the crypto market. As you contribute to the stability and depth of the DX25 ecosystem, you’re not just a passive investor but an active participant in shaping the future of decentralized finance.

Through this initiative, you’ll earn substantial returns on your investment while minimizing risks, thanks to our robust infrastructure and security measures. By capitalizing on this golden opportunity, you’re setting yourself up for financial growth, all while aiding in the overall stability and success of DX25.

So, why wait? Get started today and position yourself at the forefront of the crypto revolution. Join the DX25 community now to unlock unparalleled financial benefits and become a part of something bigger.

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