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Farming (i.e. liquidity provision)
Cryptocurrency market participants may participate in various protocols by providing digital assets to supply the liquidity needed for underlying protocol activities (for example, liquidity pools for swapping), and earn additional token rewards (e.g. $ECLIP) for such activities, a process known as "liquidity farming" or "mining".
Eclipse Fi users can seamlessly provide liquidity to the liquidity pools of various supported protocols (e.g. ECLIP-SEI liquidity pool) with the Eclipse front-end UI. This UI operates on the Astroport DEX which controls the back-end operations for the liquidity pool. This allows users to manage positions and track accrued Cosmic Essence from farming. Users will be able to both farm tokens and monitor their expected and accumulated rewards from a single comprehensive UI.
The logarithmic infinite weighted reward splits involve a process where users can boost liquidity depth for specific $ECLIP trading pairs on decentralised exchanges, and earn $ECLIP for providing such liquidity. This is achieved by staking or locking $ECLIP tokens and locking liquidity tokens. When contributing liquidity, participants must pool equal quantities of $ECLIP tokens and the corresponding paired token.
To calculate staked token amounts, user statuses, and user Cosmic Tier levels, the amount of underlying $ECLIP tokens associated with the liquidity token is counted twice. For example, if a participant pools 1000 $ECLIP tokens at a rate of 1 USDC per 1 ECLIP token, they will effectively add 1000 $ECLIP tokens and 1000 USDC tokens to the pool. Participants can then stake or lock these LP tokens in the corresponding staking or lockup vault, enhancing the overall liquidity of the trading pair.
Therefore, the current balance of staked $ECLIP tokens is reflected as twice the redeemable amount of $ECLIP tokens tied to the locked liquidity tokens, further incentivizing participation in the liquidity provision process.
Last modified 3mo ago