Liquidity Mining

Goals of the Liquidity Mining Program

The goal of the liquidity mining program is to incentivize community members to allocate liquidity to pools that are in need. It is the way to "borrow" liquidity from the other parts of the DeFi ecosystem and re-allocate them to pools that are important when Bluejay Finance expands into new markets.
When creating a currency tracker for a new market, there will be a catch-22 situation where users will not buy or use the stablecoin unless there is sufficient liquidity to absorb a short-term shock to the price (for larger transactions), while liquidity providers will not be incentivized to provide liquidity for a pool with few transactions.
By introducing the liquidity mining program, we reward early liquidity providers with additional BLU tokens as additional incentives on top of transaction fee earnings from providing liquidity. This allows community member who believes in the long term success of the protocol to be rewarded with BLU and allowing lower transaction pools to have sufficient liquidity in the short term.
In the long term as the market mature and transactions increase in the pool, these liquidity providers will have sufficient earnings from the transaction fees to balance the risk of providing liquidity without the additional incentive from the liquidity mining program.

Structure of the Liquidity Mining Program

250,000 BLU tokens will be distributed to liquidity pool providers over a course of 5 years.
To be eligible for the rewards, users will have to stake the liquidity provider tokens in the liquidity mining contract.
The Dapp to stake and unstake the liquidity provider tokens will be available soon.

Start of Liquidity Mining

The liquidity mining program will start 1 week after the auction. The liquidity mining will start at exactly block 19202000. The countdown of the start block is available here.
Users may stake their BLU-MATIC Liquidity Provider token in the mining contract before the start block but rewards will only start accruing at the start block. Users may do this to avoid a rush when the program starts.
The liquidity mining program will have a 2x bonus for a week. The bonus will end at exactly block 19454000 before returning to the 1x reward.
Last modified 1mo ago