Conflux Foundation officially launched the eSpace Liquidity Incentive Program on April 17th, after the Conflux DAO #12 Conflux Ecosystem Fund Usage voting (https://governance.confluxnetwork.org/en/governance/) was completed. The Liquidity Incentive program is open to both projects already launched on Conflux eSpace, and projects with plans to deploy on Conflux eSpace. Swappi will be the first participant of this Liquidity Incentive Program.
To support the growth of Swappi, Conflux will use ecosystem CFX fund to inject liquidity into the PPI / CFX pair. This program will last for 90 days. The liquidity injection will work as follows:
- Two thirds of the CFX fund will be used to purchase PPI.
- The remaining amount of CFX will pair with the purchased PPI to provide liquidity for the PPI / CFX pair.
- The remaining portion of the PPI will be staked for 3 months
The earned PPI in this process will be airdropped to all PoS staked CFX holders. The details of the airdrop will be announced later.
How to determine the injected CFX amount?
We will monitor the TVL growth of Swappi of different assets and use the combination of the following two rules to determine the injected CFX amount.
For every 10 days, we will calculate the minimum amount of the locked CFX amount in Swappi protocol over the period. Suppose this minimum 10-day locked amount is X. Then ecosystem fund will inject 8% * X CFX in total. Note that this rule will only apply one-time incrementally.
For every 30 days, we will calculate the weighted value of all locked assets and inject CFX equal to 1% of the weighted value. This rule will apply recurringly every 30 days. The weighted value is calculated as:
Total locked CFX value + 20% * Total locked other asset value
CFX TVL amount per day (the table)