I’m sorry if this is already addressed but I looked and couldn’t find. How does the platform promise 60+% returns by providing liquidity? I only ask because this is what people point to when I pitch the platform to them. If I could get some clarification on how this is possible without being a Ponzi it would really help adoption. Thank you and sorry if this is already addressed.
How does the platform promise the returns that it does?
Hey, @Brakley thanks for the question.
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Funds for subsidizing programs - it’s a temporary program to boost liquidity pools.
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Funds for this program come from the DAO.
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Because the Incognito network was just 6 months old when we launched this program, node operators earned high returns, and we just tried to balance APR to make it interesting for liquidity providers.
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For the past two months fo running that program, we got a lot of feedback and tried to make it better and much more clear for the explanation.
What we have at this moment:
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The old program [Check "Liquidity rewards program v2" ] Supply liquidity for Incognito DEX. Provide privacy for the world. is over.
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The new program Liquidity rewards program v2 just started today.
It should be much easier to explain to new users. The main differences are:
- No APR per token, but fixed amount of PRV which will be distributed through all liquidity provides (all PRV pairs)
- the reward will be calculated on PRV part only
- amount fo funds to be distributed and schedule of distribution by each month can be found here
- funds come from Incognito DAO
@Brakley let me know if my explanation helps or if needed other clarifications.