💦Genesis Liquidity Program
To bootstrap liquidity for ALP, the Genesis Lock program distributes extra rewards in exchange for early Adrena Liquidity Pool depositors keeping their collateral locked for 6 months at launch.
In peer-to-pool liquidity platforms, the ability for traders to open positions at sizes they want is contingent on sufficient collateral deposited into the platform (to be borrowed by traders). Thus, good trader UX requires sufficient and stable collateral on platform.
At the same time, collateral owners are inherently yield-seeking and not likely to deposit their collateral into a new platform with no history of generating sufficient yield to overcome their opportunity cost of capital.
Genesis Lock seeks to solve this chicken and egg problem by deploying a bonus reward for early collateral willing to lock for 6 months at launch.
Timeline
On the 17th of September 2024 12AM UTC, the Genesis Liquidity Program campaign will start, opening the ALP deposit for up to 10m USDC (5m reserved and 5m public). After a day, the reserved allocations that have not been deposited will transition to the public amount.
On the 20th September 2024, 3 days after, the campaign will end.
During 2 days, the protocol will be on standby, as the deposited liquidity are rebalanced to JitoSOL/WBTC/BONK with an OTC desk.
On the 22nd September 2024, 5 days after start, the trading will go live (given that there was no issues with the OTC deal).
Adrena Genesis Lock Bonus Rewards
The community will be able to deposit USDC up to a $10M cap, with half of the capacity reserved for early investors and contributors, and the other half for the public. Deposits will be accepted on a first-come first-served basis.
Deposits will be locked for 6 months.
5% of the ADX supply (50M tokens) will be reserved purely for Genesis Lock depositors.
These 50M tokens will be emitted linearly to Genesis Lock stakers the same 6 months in liquid form, and are incremental to regular ALP yield.
Genesis Liquidity Providers also receive standard LP rewards in additional to the genesis rewards.
Emissions Schedule (Genesis Rewards Only)
| Month | Total $ADX Emissions |
|---|---|
1 | 8,333,333.333333 |
2 | 8,333,333.333333 |
3 | 8,333,333.333333 |
4 | 8,333,333.333333 |
5 | 8,333,333.333333 |
6 | 8,333,333.333333 |
As an example: If you deposited $100k, 'x' amount of ALP would be minted representing 1% of your share of the pool ($10M). Based on this, you would receive 83,333.333333 $ADX every month for 6 months, totalling 500k $ADX (1% of rewards).
Emissions Schedule (Genesis Rewards + Standard LP Reward Emissions)
| Month | Genesis ALP Rewards | ALP Rewards** | Total $ADX Rewards** |
|---|---|---|---|
1 | 8,333,333.333333 | 15,000,000 | 23,333,333.333333 |
2 | 8,333,333.333333 | 13,500,000.000000 | 21,833,333.333333 |
3 | 8,333,333.333333 | 12,150,000.000000 | 20,483,333.333333 |
4 | 8,333,333.333333 | 10,935,000.000000 | 19,268,333.333333 |
5 | 8,333,333.333333 | 9,841,500.000000 | 18,174,833.333333 |
6 | 8,333,333.333333 | 8,857,350.000000 | 17,190,683.333333 |
** Standard ALP rewards depend on how long you stake your ALP. See Staking and Locked Stake Parameters for $ALP for more details.
Note: Adrena liquidity pool can be in three states:
Genesis: Accepting Genesis Lock deposits
Idle: Genesis Lock deposits closed. During this period, the protocol will sell USD for ALP assets to optimal ratios
Active: Platform launched, trading active, regular ALP deposits open
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