How does the platform promise the returns that it does?

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.

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Hi Seth, I think Andrey could help to provide a reasonable response for this.
cc: @andrey

Hey, @Brakley thanks for the question.

  1. Funds for subsidizing programs - it’s a temporary program to boost liquidity pools.

  2. Funds for this program come from the DAO.

  3. 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.

  4. 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:

  1. The old program [Check "Liquidity rewards program v2" ] Supply liquidity for Incognito DEX. Provide privacy for the world. is over.

  2. 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.

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