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IGGalaxy’s UniSwap Liquidity Pool Incentive Program Launched!
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IGGalaxy’s UniSwap Liquidity Pool Incentive Program Launched!

On Saturday 31 October, we released an article introducing IGGalaxy’s Liquidity Pool (LP) Incentive Program ahead of IGG’s listing on UniSwap.

As we outlined in the article, this incentive program will reward those who provides liquidity for IG Gold (IGG) trading pairs on specified decentralised exchanges (DEX’s), starting with IGG/ETH on UniSwap. The rewards for these pools will consist of IGG and ORB tokens, but we may also look to provide additional rewards to liquidity providers for IGG in the future.

The first reward period of the IGG/ETH UniSwap Liquidity Pool of the Incentive Program will take place between 1 November to 15 November! Over this two week period, any wallet that adds the minimum requirement of ETH and IGG will be eligible to share the 15m IGG and 1m ORB. The more you add and the longer you leave it, the more you will earn!

We highly recommend reading the article shared above, which introduces the incentive mechanism. This article covers the key points in the article we released on Saturday

Please note that the details provided below are provisional and are subject to change as we get more data and strive optimise the program for its intended purpose.

IGGalaxy’s Liquidity Pool Incentive Program: Launching with UniSwap Protocol!IGGalaxy’s Liquidity Pool Incentive Program: Launching with UniSwap Protocol!

Purpose of IGGalaxy’s LP Incentive Program

  • The purpose of this incentive program is to encourage the provision of liquidity for particular IGG trading pairs, which is essential to grow the usage and volume of IGG.

How the IGGalaxy LP incentive program will work:

For each Automated Market Maker (AMM) Decentralised Exchange that we list in this program, we will provide rewards for those who support the IGG token economy by providing liquidity.

Please see below the key components to this incentive program that will apply to current and future pools:

Reward Period:

  • This is currently set at 2 weeks (14 days)
  • During this period, all liquidity provided is recorded in terms of amount and duration left in pool
  • At the end of this period, the allocated pool of rewards will be distributed to eligible wallets

Allocated Pool of Rewards

  • Prior to each reward period, we will provide the total allocated rewards available to eligible liquidity providers.

Eligibility to earn Rewards - Minimum Liquidity Requirement

  • Anyone can participate in the LP Incentive Program
  • However, for each reward period, there will be a requirement set for a minimum amount of liquidity that must be added to become eligible for that Pool.

Distribution of Rewards

  • Rewards will be distributed proportionately to eligible wallets, based on the amount of liquidity added and duration left in the pool over this period in comparison to others.
  • ALL rewards will be distributed to liquidity providers via the Matic network - the rewards will be sent to the corresponding Matic wallet of the liquidity providing wallet.

Minimum Liquidity Threshold

  • Prior to each Reward Period, we will provide the minimum required ‘added liquidity’ in order for the rewards pool to be maintained at 100%.
  • For subsequent reward periods, the Minimum Liquidity Threshold will need to be maintained for the rewards pool to remain at 100%
  • If this threshold is not reached, the rewards pool will be adjusted accordingly.

1 November to 15 November Reward Period for UniSwap Pool

For the first launch reward period of the UniSwap Liquidity Pool for IGG/ETH, we are providing 15m IGG and 1m ORB tokens as rewards.

The amount of rewards you receive from this pool will be based on the amount of liquidity you provide and the duration that you leave the liquidity over this reward period.

What are IG Gold (IGG) & IG ORB (ORB) Tokens?

IG Gold (IGG) is the operational token of IGGalaxy. We have provided an extensive but non-exhaustive list of use cases for IGG in our recently released LitePaper v2.0. This includes the requirement of IGG for entry fees/deposits for particular tournaments, premium subscriptions, team creation, team-player contracts and much more!

In addition, since May 2019, IGLabs currently allows IGG holders to store IGG tokens in capsules for a fixed period of time; by doing so, you burn 0.2% of IGG locked in the capsule, but earn ORB tokens as a reward.

ORB tokens will play the role of a governance token for IGGalaxy and operational token for IGLabs.

ORB can always be sold to IGLabs (at a current guaranteed rate of 5 IGG per ORB). 50% of all ORB tokens sold to IGLabs is burned from existence, effectively reducing the total supply, making it a highly deflationary token.

IGLabs now exists on Matic network, where Capsule creation is incredibly cheap! 1 Matic will last you around 1000 Capsuled - you can check out our guide on getting started with IGLabs to earn ORB.

Example: Incentive Program in Action

To demonstrate how this works, we will walk you through a simplified example:

  • For simplicity sake, let’s say 2 wallets added the minimum liquidity required and also reached the minimum liquidity threshold
    • Wallet A added 70% of the total liquidity over the period
    • Wallet B added 30% of the total liquidity over the period
    • Wallet A will receive 70% of the allocated rewards pool
    • Wallet B will receive 30% of the allocated rewards pool

The rewards will be sent quickly through the Matic network - they will be sent to the liquidity providing Ethereum wallet’s corresponding Matic network address.

Benefits of Incentive Program to IGG Token Economy

There are numerous benefits to providing an incentive program that encourages deeper liquidity reserves:

  • Open up the door to new traders and holders as greater volumes of transactions can be facilitated with less slippage (reduced volatility).
  • Creates buying demand, where IGG is purchased to ‘liquidity farm’ IGG, ORB and other rewards.
  • Makes it more profitable to own a share of the liquidity pool because in addition to the rewards earned from our incentive program, liquidity providers earn a share of the 0.3% fee for swapping tokens on UniSwap.

Future of the Incentive Program

This week, we will select one of the MATIC DEX’s to inject initial liquidity into IGG/Matic pair. We will then list the trading pair on the exchange as part of IGGalaxy’s Liquidity Pool Incentive program, creating a separate pool of rewards.

We look forward to sharing more details on that in due course. We will also look to add more pools as we identify decentralised exchanges we intend to strategically list on.

FAQs

What is the risks of providing liquidity?

  • There are two risks you should be aware of:
    1. Cryptocurrencies are volatile - if the whole market were to decrease in price, including Ethereum, this would impact the value of the liquidity you have added.
    2. Impermanent loss - Swaps are facilitated by the tokens within the liquidity pool. This can lead to impermanent loss of your tokens, which we highly recommend reading up on prior to participating.
  • There are risks of ‘rug pulls’ with projects with ghost teams and no intention to build anything meaningful. This is not a risk with ourselves as we have demonstrated our intention and commitment to building IGGalaxy as the home for social competitive gaming and esports.

How do I add liquidity to UniSwap IGG/ETH pair?

If I add more liquidity over a reward period, will it count?

  • Yes! We will continuously capture the data of amount of liquidity added by individual wallets and the duration of time that the liquidity has remained

Will IG’s added liquidity count toward the program?

  • No - the initial liquidity we provided for Uniswap or other pools will not count toward the reward program. This ensures the rewards go to the community that are supporting deeper liquidity!

How do I collect the fees I have earned from providing liquidity?

  • Swapping fees are immediately deposited into liquidity reserves.
  • This increases the value of liquidity tokens, functioning as a payout to all liquidity providers proportional to their share of the pool.
  • Fees are collected by burning liquidity tokens to remove a proportional share of the underlying reserves - ie withdrawing your liquidity.

To keep up to date with developments, please follow us on our various social media channels:

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