As you may know, our beginning phase for farming ends today. Time to place your liquidity based on next epoch rewards. We wanted to give a glimpse of how things will work when transitioning to the standard Epoch format. We want everyone to be aware that they must deposit their LPTs before the start of the new epoch in order to qualify for farming.
In this blog, that is our goal
1) Inform so that you understand that with your liquidity you must choose your farms for the next epoch as soon as possible.
and
2) Explain clearly how things will work with total rewards going forward.
Important note: Be careful, stablecoin farms have been the subject of a split vote. They’re canceled for the epoch staring tomorrow. That means at least until Monday 25.4. 21:45 UTC no way to win on these farms!
For a summary Inception Farming Epoch (IFE) is a manual period starting Tuesday, April 12, 10:40 UTC (from the start) and ending on Wednesday, April 20, 2022 at 21:45 UTC. This was clearly outlined in our earlier blog here. During the period, the platform creates multiple snapshots of the deposited LPTs. These are used to determine rewards based on the average amount of liquidity the user has provided during the IFE to create a baseline for the user’s reward eligibility and share. Anyone who has provided a total of at least 1000 ADA equivalent of liquidity across all pools and pairs on average across snapshots is eligible for a bonus.
A later blog will focus specifically on IFE’s Yield Farming Rewards, with a set of detailed examples (using real liquidity pools) to make it clear and transparent how rewards are calculated for IFE. To do this, we need to manually review the snapshots and do the calculations. You will see your rewards in the UI once the calculations are complete. These WRT tokens are subject to the lock-up period, so you do not have them at your direct disposal immediately.
Staking Rewards
The IFE (Inception Epoch) ran for eight days, just short of two Cardano epochs. All liquidity pools with ADA to token pairs are eligible for staking rewards. Staking rewards are calculated per liquidity pool based on the amount of ADA provided in the liquidity pools. The staking rewards will be added back to said pool, increasing the value of the Liquidity Pool Tokens (LPTs) held by the rider.
Anyone who provided liquidity to a paired ADA pool during IFE also earned staking rewards. The staking rewards are still subject to Cardano’s staking mechanics. So if you deployed ADA in Epoch 332, it will affect the randomized staking rewards during Epoch 336. However, they are only part of all liquidity providers, so ADA that were already in the pool will affect the current staking rewards and increase the value of the LPTs you hold. The only exception is when providing liquidity to a new paired ADA pool. Because of the way staking on Cardano works for such a pool, you can expect the first staking rewards after four epochs. If you withdraw your liquidity earlier, you will lose staking rewards.
Important TLDR note: Providing liquidity to a new ADA token pool, you can expect the first staking rewards in 4 epochs. If you withdraw your liquidity sooner, you will lose premiums.
Exchange fee rewards
Trade/swap fees earned during the IFE were calculated at a rate of 0.3%. These swap fees were deposited into the corresponding LPs and therefore increased the value of the LPTs held by a driver for that pool.
So what’s next, well, a more structured form of epoch and reward period. We call this “Regular Farming Epochs” (“RFE”).
Regular farming epochs (RFE)
- This period lasts from Wednesday, April 20, 2022, 21:46 UTC to May 15, 2022, 21:45 UTC. It will be divided into 5 epochs, each lasting 5 days, reflecting Cardano’s regular staking epochs.
- During each 5-epoch period, WRT rewards will be distributed proportionally to anyone who provides liquidity and keeps their LPTs deposited in one of the available farms for the entire epoch. Current farm rewards can be viewed in the UI. Depositing LPTs is done in the UI part of the app under the Farming tab.
- These premiums are calculated solely based on the proportion of the pools’ liquidity held by each liquidity provider, as represented by the LPTs tied to the holder’s wallet.
- To ensure rewards are allocated fairly (and to prevent anyone from “gambling” the system), only the minimum amount of LPTs deposited by a liquidity provider over the course of a 5-day epoch will be the basis for the calculation of their rewards.
(Example: John provides 5,000 ADA worth of liquidity before the start of the third RFE and deposits his LPTs into a farm. On the second day of the third epoch, he withdraws his 2,000 ADA worth of LPTs from the farm and then removes 2,000 ADA Value of his cash The next day he realizes he doesn’t need the money and pays the cash back into the pool and also the LPTs into the farm This means he only gets 3,000 ADA for that third RFE value of cash since this was his minimum during that epoch.)
- That is, if you have no liquidity in a pool and deposited LPTs before Wednesday April 20, 2022 21:45 UTC You will not receive WRT rewards for the next 5 days thereafter or until the end of the next full RFE.
So what if I come in the middle of a 5 day epoch… will I get some rewards?
No – you must deposit your LPTs before the 5-day epoch begins to be eligible. Later in the epoch, if you withdraw your farmed LPTs and/or withdraw liquidity, you will lower yours minimum deposit, and this lower amount will be used as the basis for the premium calculation. That minimum deposit for this epoch is displayed in the user interface as “My Effective Liquidity“.
There was neither TGE nor a public sale; How do I get the WingRiders token?
Your wallet address will be saved and you will have access to a claim drop to unlock tokens after the TGE (as this could affect liquidity on day one on the market, we reserve the right to delay this for a short period of time – This will be communicated transparently and promptly.)
Why can’t I see the price or monetary value of the WingRiders token?
As the platform governance token is not in the market, no price can be communicated. Any math experiments on napkins you want to do from our TVL, total tokens relative to our competitor and other parameters to derive a number that we cannot comment or validate. As with all DeFi protocols, do your own calculations, double check and make your own decisions. The WingRiders team, mods or other team members cannot give financial advice, only technical advice.
Are there other rewards?
At this time, we cannot commit to any special rewards in the form of other project tokens or NFTs on top of WingRiders’ promise for future governance token delivery. We’re in intensive discussions with many partners about possible rewards, so keep an eye on your farm and on Twitter and Discord for upcoming announcements.
How do I see my rewards?
If the farm yields rewards other than WRT, the assigned reward will appear in the UI shortly after the end of the RFE (it may take several days for the first epoch). For establishments that provide WRT, this can be delayed even longer. The condition there is that WingRiders complete the development of the Governance Token Vesting Contracts and test them for security.
How do I claim rewards?
WRT will be locked for the time being and unlocked shortly after the platform TGE (Token Generation Event) and the first day of trading. TGE is currently scheduled for Q2 2022. If the farm also yields other rewards, they should be available to claim right after they appear in the WR UI. Please allow some time for these awards to be calculated and verified.
What liquidity pools are eligible for Farming Rewards?
All farms that you see in the Farming section of the UI are eligible for farming rewards. If no farm is listed, there is no farming reward for that particular liquidity pool. WingRiders team is not responsible for mistakes made by users who “accidentally” deposit into farms.
What liquidity pools are eligible for WingRiders token rewards?
All farms are eligible for WingRiders token rewards. Should farms be added in the future that only reward liquidity providers with something other than WRT, these will be clearly marked. Please review all screens carefully and make sure you understand the rewards of each farm In front Deposit your lp tokens any Farm yard.
Why is some of the aggregated data not shown in the UI?
Some of the aggregated data is not displayed immediately. All missing data will be activated in the coming days (exception is APR). If you have any questions, please post them on Discord.
Peace and good flying!
Disclaimer:
WingRider tokens do not carry direct or future profits or rights to funds or financial compensation. Buying or selling tokens from or to anyone else involves significant risk and potential financial loss. The WingRiders tokens are not investment or financial instruments, nor do they constitute any form of electronic money or payment service.
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