TminusOne, in conjunction with VyFinance, are releasing a new form of Vesting that will aid projects in building their liquidity!
What is Lock’n’Load Liquidity?
Lock’n’Load Liquidity is a unique method of liquidity provision where in half the Liquidity Provider tokens (LP token) are provided by a participating project. The LP created from the users’ funds and the projects tokens are then locked in a vault for a period of time incuring a bonus staking reward depending on how long the LP is locked for.
Why Lock’n’Load Liquidity?
Many projects in our ecosystem are in need of more liquidity to assist them with building out their products, and to better give their communities on/off ramps into their tokens and products. To help projects do this, we are giving teams the power to offer users the boosts to their total liquidity pool tokens, in exchange for vesting liquidity!
How does it work?
Very simple:
- Users will visit Tminusone.pro and select a participating project they wish to lock liquidity into.
- They will then provide $ADA to the Lock’n’Load Vault!
- The participating project will provide the other half of the liquidity (project tokens), which will be used to mint Liquidity Pool Tokens.
Done. Easy.
How does the user receive bonus liquidity?
This is best described by walking through the process:
- A project wishes to gain some more liquidity in their liquidity pool.
- They offer 10k ADA worth of their token to help build this.
- Users can then deposit ADA against these tokens
- Decide how long you want to vest for (between 3 months and 1 year). The longer the users’ vests, the larger the bonus they will receive.
In return for the vesture, the project can offer up to a 100% on the total LPs that the user receives.
As an example, a user chooses to vest 1000 ADA for 3 months. The project is offering a 20% bonus for a 3-month vesture. The 1000ADA will be matched with 1000ADA of the project’s tokens. So, after the 3 months, the user will claim an extra 20% Liquidity Pool tokens to what would have been received if they just added liquidity normally. In other words, if the token remains at the price in which the user entered — they will hold 600ADA + 600 ADA of the project’s tokens (a 20% bonus on their original deposit).
In the above example, the project would receive the remaining 40%, or 400 ADA + 400 ADA of the project’s tokens. The project’s LPs will also be vested for the same period of time as the user who created them. This way, projects are also able to conduct a small raise for themselves that aid in growing their total liquidity and project longevity.
When will we be able to get involved in earning bonus liquidity?
We expect to be launching Lock’n’Load liquidity by the end of September, and have already confirmed two projects that we will be launching with! These will be announced in the near future. We are super excited to be bringing not only a new tool for projects to help build their liquidity, but a brand-new way for users to utilize their ADA to earn significant bonuses of project tokens.
Happy Vesting everyone!
