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Liquidity Providers Rewards Program

The Iagon Liquidity Providers Rewards Program is a program set in place to incentivize the community to actively participate in providing liquidity for trading IAG tokens across multiple Cardano DEXs. Additionally, Iagon will be running an LSPO (Liquidity Stake Pool Offering) to provide further avenues for the community to get involved, the LSPO will function similarly to the previous ISPO, except that revenue generated from the pool will primarily be used to provide liquidity across DEXs.

To motivate the community to boost the IAG/ADA pool liquidity, 30 Million IAG tokens have been reserved for incentivization with rewards based on the size and duration of the liquidity provided.

Details:

NameValue
πŸ’Έ Total Rewards30,000,000 $IAG
Methods of ParticipationπŸ‘‰ Provide Liquidity on DEXs
πŸ‘‰ Delegate ADA to LSPO pools
πŸš€ Start DateApril, 2023
πŸ›‘ End dateApril, 2024​

How to Participate​

In order to participate and begin qualifying for IAG token rewards, there are two primary paths:

a. Providing Liquidity​

The first and most rewarding method is for users to provide liquidity (both ADA and IAG tokens) on the verified pools of our partnered DEXes. By doing so, you'll earn rewards from the Liquidity Program in proportion to your share of the total liquidity.

The following is a list of Cardano DEXs with verified pools participating in the Liquidity Program.

  1. Minswap - https://app.minswap.org/liquidity
  2. Wingriders - https://app.wingriders.com/pools
  3. VyFinance - https://app.vyfi.io/
  4. Spectrum Finance - https://spectrum.fi/

When selecting your tokens, be sure to choose IAG and ADA and double-check that they are verified to ensure your participation in the program.

b.LSPO​

The second method to participate is to delegate your ADA stake to the LSPO stake pool.

Pools info:

  • Pool Ticker: IAGL1
    Pool ID: pool1ztk6dcj2nc3plnujf3ek6jqngtx8hcryufz56lyumemlcy2xxn0 - link is here

  • Pool Ticker: IAGL2
    Pool ID: pool1e59h5m5vyggszyafel7zvcnsayt2de7wyxyezlrsmm4a679q3zr - link is here

85% of the rewards generated by this pool will be used to provide liquidity for the IAG/ADA pair across Cardano DEXs

Users who delegate to the IAGL1 stake pool will be rewarded based on the size of their stake, and the number of epochs that they stake with the pool.

The LSPO started on April 21st, 2023, and will run until the last week of April 2024 (72-73 Epochs total).

Pool Integrity

Our commitment to the safety and security of our pool runs deep. We've left no stone unturned in our efforts to protect against potential supply chain attacks. We've rigorously tested for privilege escalations and subjected our pool to multiple rounds of security audits.

Our efforts don't stop there; we're constantly monitoring the performance metrics of our pool through automation and vigilant oversight. We've even gone the extra mile by setting up timesync devices and redundancies to ensure our pool runs like a well-oiled machine.

We take our responsibility seriously, and our users can rest assured that their assets are safeguarded at all times.

πŸ‘‰ How to Stake with the IAGL1/IAGL2 stakepools: Check the tutorial

How are Rewards Calculated

Rewards for participating in the Liquidity Program will be based on the size of stake, length of stake, and whether user-provided liquidity, participated in the stake pool, or both.

After the program ends, rewards will be distributed over 12 months to ensure continued engagement and benefits.

Calculating Rewards​

Rewards for the Liquidity program can be calculated here: https://calculator.iagon.com/

With just a few clicks, you're able to see how your contributions can earn you rewards over time with several parameters:

  • your stake period (length you stake your liquidity in the pool)
  • amount you stake
  • amount you delegate to LSPO pool (IAGL1)
  • length you delegate with the LSPO pool (IAGL1)

This powerful tool takes the guesswork out of calculating your potential rewards and makes it easier for you to understand the benefits of participating in our program.

How are rewards Calculated?​

We understand that not everyone is interested in the technical details and complex calculations that go into our liquidity rewards program. That's okay because we're here to make things as easy as possible for you.

If you're simply looking to participate and earn rewards for your liquidity, you can skip the technical jargon and focus on the simple steps for providing liquidity.

We want everyone to be able to participate and benefit from this program, regardless of their technical expertise. So don't worry if you're not a tech wizard - we've got you covered!

But below you can check technical and math details on how rewards will be calculated. We will use such reward computation function that would meet the following requirements:

Screenshot of a comment on a GitHub issue showing an image, added in the Markdown, of a graph with rewards.

  • promoting longer locking periods;
  • promoting higher locking volumes;
  • allowing unlocking at any time (not necessarily continuous, perhaps once per epoch);
  • providing an increase in terms of reward value (calculated in USD)
  • monitoring the amount of tokens given out as rewards globally (the closer we get to the 0.5-3% limit, the slower the reward increase rate);
  • Providing an additional boost for people delegating tokens as part of the LSPO.

The first two requirements suggest that the reward function should be superlinear in time and volume (if it was linear, there would be no difference between locking for many shorter periods and one longer period; the same can be said for locked amounts). If we consider the way continuous compounding of interest is handled, we could suggest an exponential relation i.e.:

Screenshot of a comment on a GitHub issue showing an image, added in the Markdown, of the formula.

where:

  • A0 is the amount of locked tokens,
  • t0 is the moment in time the tokens were locked,
  • t is the moment of unlocking,
  • Vt is the token value (e.g. in USD) at the moment of unlocking (we divide by it to make the growth exponential in terms of value, not token amount),
  • Ξ± is the degree ofa.g. around 1.2m but this needs to be determined),
  • Ξ² is the growth coefficient (to be determined as well).

Now, formula (1) is reasonable if the overall amount of tokens given out as rewards is far below the upper limit. When it begins to approach that point, we will need to start damping the exponential growth. The idea is to multiply the exponential component by another function that starts at 1 but tends to 0 as we reach the limit. One idea for such a function is:

Screenshot of a comment on a GitHub issue showing an image, added in the Markdown, of the formula.

where:

  • Nr is the total amount of tokens given out as rewards so far,
  • Nmax is the maximum allowed amount of tokens provided for rewards (i.e. 0.5-3% of the total token supply at the moment),
  • Ξ³ is the damping coefficient (higher values of Ξ³ will make this component stick close to 1for longer, at the price of a steeper increase as we come near to the limit; lower values would make the initial drop more drastic).

Finally, we need another multiplicative term that reflects a person's participation in the LSPO. For someone not participating, this term should just be 1 and have no bearing on the overall reward. In the case of participants, it makes sense to consider their relative contribution (percentage). Two open questions (reflected by two additional parameters) are:

  • What is the maximum reward boost for a hypothetical case of a sole participant?
  • How should the increment due to LSPO participation grow with a growing percentage? Should it be linear, sublinear, superlinear?

This leads us to the following candidate function:

Screenshot of a comment on a GitHub issue showing an image, added in the Markdown, of the formula.

where:

  • Pd is the fraction of a person's delegated tokens compared to the total volume (a real number between 0 and 1),
  • Ξ΅ is the coefficient determining how the LSPO increment depends on Pd (an Ξ΅ of 1 would mean a linear relationship, higher values would favor high percentages disproportionately, and lower values would favor moderate participation),
  • Ξ΄ is a coefficient limiting the maximum reward boost due to participation in the LSPO (if Ξ΄ is small, a hypothetical sole LSPO participant would see a drastic increase in their reward; if it's large, the LSPO effect on the overall reward is negligible; Ξ΄ β‰ˆ 2 translates to a boost by a factor of 1.5 in the extreme case).

The final reward function is the product of (1), (2), and (3):

Screenshot of a comment on a GitHub issue showing an image, added in the Markdown, of the formula.

Previous ISPO

Iagon held an ISPO (Initial Stake Pool Offering) that spanned from April 2022 - February 2023 and saw a total of 70,000,000 $IAG tokens get distributed to delegates of the stake pool.

The ISPO event is no longer active, participants wishing to participate should look to our LSPO to find out how they can earn rewards by delegating their ADA.

Claiming Rewards​

In February 2023, Iagon airdropped 17.5% of all ISPO rewards to ISPO participants.

The remaining rewards were subject to a 12-month linear vesting schedule and have been released proportionally month by month, available to be claimed by participants through the Tosidrop platform.

For community members who participated in our original ISPO, rewards can be claimed at tosidrop.io

Rewards are made available on the 5th day of every month.

FAQ

Is the LSPO different from the Original ISPO?​

YES. The original ISPO was an event we held in the past that ended near the start of 2023. The LSPO is a different program aimed to directly benefit the depth of liquidity across Cardano DEXs.

Can you delegate to the LSPO even if you don’t provide liquidity on a DEX?​

YES. Providing liquidity is not a prerequisite for delegating ADA to the LSPO pool. Users can choose how they would like to participate in the Liquidity Program either by providing liquidity on DEXs, delegating to the LSPO or both.

How long do we have to delegate to the LSPO?​

The LSPO pool opened in April 2023 and will run until the last week of April 2024.

How do I claim rewards from the Liquidity Program?​

Rewards for participating in the Liquidity Program will begin distribution once the program has ended (April 2024). All rewards (from providing liquidity and the LSPO) will be subject to a 12-month vesting period. The distribution method is yet to be announced.