Supporting SNR Token Liquidity
SCENARIO will use a variation on traditional liquidity farming / yield farming to ensure that sufficient token liquidity is supported following the TGE.
Indefinite yield-farming will not be desirable or sustainable given the hard-capped total token supply of 1 billion. For this reason, rather than providing liquidity on an ETH/SNR or USDC/SNR position and staking the LP token to farm SNR tokens directly, users will instead be granted additional ‘earning power’ (staking weight) by providing liquidity and staking their LP position.
Each SNR token situated within an incentivised liquidity pool will be deemed to have 3 times the ‘weight’ of an SNR token that is staked in the protocol alone, from a revenue distribution perspective.
| Example | SNR staker is not providing SNR liquidity | SNR staker is providing SNR liquidity |
|---|---|---|
A scenario is successfully resolved and its pool is paid out. There is a total of $5,000 in this example scenario pool. 10% of these funds ($500) are distributed to SNR stakers according to their stake share. | User A has 100 SNR staked. Their staked weight is 100. An example total staked weight of 5000 SNR exists across the protocol at the time of this pool’s resolution. User A’s share of the total staked weight is 100/5000 = 0.02. User A receives 0.02 x $500 = $10.00. | User B instead has 100 SNR in an incentivised SNR/ETH LP position. For these 100 tokens they receive 3x multiplier. User B therefore has an aggregate staked weight of 300 SNR out of the total staked weight of 5000 SNR at the time of pool resolution. User B’s total share is 300/5000 = 0.06. User B receives 0.06 x $500 = $30.00. |