Liquidity Incentive Program for Swappi

Overview

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:

  1. Two thirds of the CFX fund will be used to purchase PPI.
  2. The remaining amount of CFX will pair with the purchased PPI to provide liquidity for the PPI / CFX pair.
  3. 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.

  1. 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.

  2. 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 
    

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CFX TVL amount per day (the table)

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Transaction Hash:

https://evm.confluxscan.io/tx/0x721fb778b2b97e2c33bcb7b463d2e519c84e9f5030871abda40711c18501de1d

https://evm.confluxscan.io/tx/0xddc08aefd2995fdc9c2fb80aae28c64ba5c86318d44028544185187ab6b50183

https://evm.confluxscan.io/tx/0x9ded28a22f044c1f7182e40c68f499bbde9f3f001df62bb5a9b7d06813eea1c1

The above transactions are based on the “How to determine the injected CFX amount” item 1. From Apr. 10th to Apr. 19th the total locked CFX amount is 63,384,900CFX, therefore the Conflux Foundation injected 63384900CFX x 8% = 5,070,792CFX. From which 3,380,528 CFX was swapped to 1,066,072PPI, paired with the rest CFX to stake into the CFX/PPI pool.

The next transaction will be conducted on Apr. 30th based on the Apr. 20th to Apr. 29th total locked CFX amount.

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Transaction Hash:
https://evm.confluxscan.io/tx/0x1e236f6742f0bd584ac071f9804e1bf73518880e8a622e899963e272a4f11a1b

https://evm.confluxscan.io/tx/0x0f044295982c9bd3c1a73baa6c03f5316e9dbe5da5d6c8d32a31d096e89dd5fa

https://evm.confluxscan.io/tx/0x9017aca07258dc661ced31d2d84ee992105a68ab429d9bc2d2a35f087c5bbb84

From Apr. 20th to Apr. 29th the total locked CFX incremental amount is 115,196,744.74 (20th) - 63,384,900 (10th) = 51,811,844CFX, therefore the Conflux Foundation injected 51,811,844 x 8% = 4,144,947.52 CFX. From which 2,763,021 CFX was swapped to 1,969,947.11 PPI, the remain CFX paired with corresponding amounts of PPI to stake into the CFX/PPI pool. And rest of PPI were staked into the staking pool.

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CFX TVL amount per day (the table)
image

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Transaction Hash:
https://evm.confluxscan.io/tx/0x7eaaf62c96657d656b2cbafce3df8166d6ac34520a8ee984097c7ee6a97757ba

From Apr. 30th to May. 9th the total locked CFX was decremental amount comparing to last 10 days, hence the 1st rule of the program was not applicable.

The 2nd rule was as follow:
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

On May 9th:

  • CFX usd value: $11,479,989.28
  • Total locked other asset value: $ 23,673,721.8 * 20% = $ 4,734,744.36

Total: ($11,479,989.28 + $ 4,734,744.36) * 1% = $ 162,147.33 ≈ 1,382,330.22 CFX

From which 950,000.23 CFX was swapped to 1,654,993.08 PPI, the remain CFX paired with corresponding amounts of PPI to stake into the CFX/PPI pool. And rest of PPI were staked into the staking pool.

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CFX TVL amount per day (the table)

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