Perpetual Protocol is glad to announce our first incentive program for Balancer Shared Pool (BSP) LP rewards. Stake you Balancer Pool Token (BPT) here: https://reward.perp.fi/
The motivation for implementing the Balancer LP Reward Program is to incentivize the early PERP holders with PERP tokens. The team will review the result every week to make sure the LPs have enough incentive to provide liquidity for PERP. The liquidity providers (LPs) will share rewards proportionally to the shares in the pool and time during which they have provided liquidity.
How to participate?
Provide liquidity to the Balancer Shared Pool of PERP token
1.1 Be sure to have USDC, PERP, and ETH in your web3 wallet in advance (Metamask, Trust Wallet, Coinbase Wallet, Cypher, etc.).
1.2 Press “Add Liquidity” on the webpage:
1.3 Before you can add liquidity, you need to set up a proxy (It is a one-time procedure to save your gas in the long-term). Press “Setup”:
1.4. Now you can choose the way ( Single asset or Multi assets ) you want to provide liquidity, you can also provide liquidity if you only have USDC. Once you confirm the transaction, Balancer will automatically divide your token into 2 parts as the ratio of the pool( 80% PERP and 20% USDC).
e.g. If I add 1000 USDC to the pool, $800 valued PERP and $200 valued USDC will be provided into the pool.
Once you provide liquidity on Balancer, you’ll receive your BPT token immediately.
2. Stake your BPT on our webpage, starting to accumulate your PERP rewards
You can easily stake your BPT once you receive them on Balancer. Once the rewards are sent to the reward smart contract, every staker is able to claim rewards based on their ratio EVERY BLOCK. 25,000 PERP rewards and PERP bonus from BALs will be allocated proportionately to liquidity contribution.
**3. PERP token as your LP rewards will be distributed on a weekly basis, you can track your rewards on our page.
You can freely check all the stats below:
- BPT Available: BPT tokens you can stake at hand.
- BPT Staked: BPT tokens you’ve staked in the LP rewards contract.
- Pool Share: The percentage of your staked tokens compared to the LP rewards contract pool.
- PERP Rewards: PERP rewards you’ve accumulated, can claim the rewards anytime as you want.
The risks and costs
Participating in Balancer Incentive Program also involves risk like other AMMs (Uniswap, Bancor):
1. Impermanent Loss
When providing your PERP and USDC to the Balancer pool, the fluctuation of the token price will lead to a temporary loss of funds.
2. Gas fee cost in the process of providing liquidity
Remember to calculate the gas fee spent in the process of providing liquidity to the Balancer pool and staking in our contract. The total gas fee costs roughly $50 when the gas fee is 150 GWei.
In addition to these risks and costs, you must also accept all the risks cryptocurrencies inherent: loss of your private keys, failure of a protocol issuing one of the assets that you use (for example, if USDC suddenly breaks the peg with USD due to regulatory issue ), legal risks, etc.
Know more about our LP Reward Program by checking our medium post
Please let us know if you have any feedback.
What is Perpetual Protocol
Perpetual Protocol is a decentralized perpetual contract protocol for every asset, made possible by a Virtual Automated Market Maker (henceforth referred to as a “vAMM” or “vAMMs”).
Like Uniswap, traders can trade with our Virtual AMMs directly without the need for counter-parties. The Virtual AMMs provide guaranteed on-chain liquidity with predictable pricing set by constant product curves. The Virtual AMMs are also designed to be market neutral and fully collateralized
PERP TOKENS ARE NOT INTENDED TO BE PURCHASED AS INVESTMENTS, NOR SHOULD THEY BE CONSTRUED AS SUCH. RATHER, PERPETUAL PROTOCOL TOKENS ARE A MEANS OF PARTICIPATING IN A COMMUNITY-OPERATED AND -GOVERNED NETWORK PROTOCOL. THE MANNER IN WHICH THE PERP TOKEN WILL BE DISTRIBUTED LIKELY WILL RESULT IN IT LOSING VALUE WITH TIME. THUS, ALTHOUGH THE PERP TOKENS ARE EXPECTED TO RETAIN VALUE IN THAT THEY ALLOW FOR GOVERNING THE PERPETUAL PROTOCOL AND STAKING IN IT, THE INFLATIONARY NATURE OF THE PERP TOKEN LIKELY WILL MAKE OWNING IT FOR INVESTMENT PURPOSES A POOR DECISION.