Liquidity Incentives
This page explains the various incentives given to liquidity provides
Liquidity is one of the protocol's key aspects. Without liquidity, the ecosystem cannot leverage itself.
Within the entire protocol, there are 3-4 kinds of incentives given to liquidity providers.
MCAI Emissions: These are emissions directly in the form of MCAI tokens that can be claimed by liquidity providers at any time.
Protocol Revenue: Over 60-80% of the protocol revenue is given back to liquidity providers in the form of either ETH or USDC. See revenue share.
Points & Airdrop: More information about an airdrop will be coming soon 👀.
Partner Points: Points and incentives given to partner protocols for integrating or using ZAI within their ecosystem.
Users who have staked MCAI get a boost in all their liquidity incentives of up-to 5x! Read more about staking boosts.
Staking in various pools comes with its own risks and rewards. See risks for more details.
How to Earn Liquidity Incentives?
There are many different kinds of liquidity incentive programs within the ecosystem that will allow users to earn points, MCAI emissions, protocol revenue, or even partner incentives. We detail a few of these programs here.
ZAI/USDC LP Staking
The ZAI/USDC pair on curve is the most important liquidity pair for the protocol. All liquidity supplied is used to allow borrowers to leverage gets executed within this pool.
This is why most of the protocol incentives and rewards are redirected to this pool for LP staking.
Besides protocol level incentives, liquidity providers also earn trading fees from borrowers when the open/close their positions.
There is no withdrawal delay when unstaking from this pool and there is very little impermanent loss as both assets are pegged to 1$.
Safety Pool Staking
The Safety Pool is a single-token staking contract that allows ZAI holders to stake and earn a portion of their fees and revenue by providing enough backstop liquidity to cover off any bad debt from the protocol.
Users who supply ZAI into this pool will earn 10% of all protocol revenue and emissions in MCAI and earn points!
There is a 10-day withdrawal delay when unstaking from this pool.
There is a 10 day withdrawal delay when unstaking from this pool however there is no impermanent loss as only one asset is staked in this pool.
MCAI/ETH Staking
The MCAI/ETH pair is crucial for allowing the governance token to have enough liquidity to allow traders to speculate on the MCAI token. Stakers can lock their MCAI/ETH curve tokens for a lock duration anywhere from 2 weeks up to 1 year.
Stakers in this pool also earn voting power, which is used in governance and earns a staking boost.
There is no withdrawal delay when unstaking however every stake has an unlock time that needs to be passed before a deposit can be unstaked.
This pair could be subject to impermanent loss as both assets (MCAI & ETH) in the pool are very volatile.
Staking in this pool will increase your staking boosts! 🎉
MCAI Staking
Alternative to the MCAI/ETH LP Staking, users can also choose to simply stake MCAI without having to provide liquidity into a DEX. Stakers can lock their MCAI tokens for a lock duration anywhere from 2 weeks up to 4 years.
Stakers in this pool also earn voting power, which is used in governance and earns a staking boost.
There is no withdrawal delay when unstaking however every stake has an unlock time that needs to be passed before a deposit can be unstaked.
Staking in this pool will increase your staking boosts! 🎉 and there is no impermanent loss in interacting with this pool.
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