Liquidity Providers Rewards Program
Overview
Iagon's LSPO (Liquidity Stake Pool Offering) is similar to a traditional ISPO (Initial Stake Pool Offering) but will commit all earnings to enhancing the depth of IAG token liquidity across various exchanges.
This form of fundraising is possible due to the native liquid staking on Cardano, allowing participants to forgo the yield on their staked ADA, delegating it to Iagon and receiving various rewards from the LSPO program in return.
Since the purpose of the program is to enhance the depth of liquidity on exchanges, the LSPO not only rewards users for delegating their ADA to the Iagon stake pools (which in turn will generate ADA that will be used as liquidity on exchanges), but it will also reward users who directly provide liquidity to the IAG-ADA pairs on various decentralized exchanges.
By incentivizing participants to aid in the bootstrapping of liquidity across exchanges, Iagon can greatly enhance the depth of liquidity for the IAG token, lowering trading volatility and improving to the availability and viability of trading the token.
Phase I
- Phase I Blog: here
On April 21st, 2023, Iagon started the LSPO program which sought to incentivize the growth of liquidity in both partnered liquidity pools across various DEXs and the Iagon Cardano stake pools. Phase I ran for 1 year, ending on April 28th, 2024.
The program was a tremendous success, growing the Iagon stake pools to over 80M ADA in delegation, and establishing deep liquidity of over 4.7M ADA in TVL across all DEXs.
Over the course of Phase I, a staggering 30 million IAG was awarded to participants of the program. These rewards are being distributed over a 12-month vesting period which began in May, 2024.
Phase I rewards are claimable each month through the DripDropz platform here.
Phase II
Given the success of the LSPO, the Iagon team decided to extend the program for a second phase in a modified format.
As of May 1, 2024, Phase II is active for an additional 1 year. Similar to Phase I, participants are incentivized to provide liquidity for the IAG-ADA token pair and to delegate their ADA to the Iagon stake pools. However, the rewards for the second phase include tokens from various partnered projects.
More details can be found below.
Partnered Projects
The following are projects that we have partnered with to bring enhanced rewards to the participants of the Iagon LSPO. Each project has committed a portion of their token supply to reward users of the liquidity program.
Saturn Swap
Saturn Swap is the fastest, simplest Decentralized Exchange (DEX) on the Cardano Blockchain. Saturn Swap allows users to quickly trade tokens on Cardano by directly interacting with public smart contracts.
Traditionally, DEXs on Cardano place an order into a smart contract that fills very slowly over the course of a few minutes with a central batcher. Saturn Swap changes the model, allowing users to directly interact with the smart contracts for instant trades.
Find out more: https://saturnswap.io/
Nuvola
Nuvola is the first DePIN aggregator on Cardano seeking to break down the barriers of entry through an innovative crowd-share model, democratizing access to the rewards of decentralized infrastructure and empowering widespread participation, regardless of technical expertise.
Find out more: https://www.nuvoladigital.io/
Phase II Details
- Start: Epoch 483
- End: Epoch 556 (73 Epochs)
Epoch dates can be checked here
Rewards
- IAG Tokens (From 10% buyback of ADA rewards for IAGL1/IAGL2 pools)
- Up to 1% of Saturn Swap token supply (Up to 1,000,000 tokens)
- Up to 2% of NVL token supply (Up to 420,000 tokens)
- IAG, FACT, COPI, MNT (Minutes Network) from Nuvola staking
- Additional tokens are still to be announced
Claim
All the rewards will be claimable on DripDropz. IAG rewards from Iagon will begin 1 year after epoch 556 and will be split up evenly over the course of 73 epochs (12 months). Partner rewards (including extra IAG) will be subject to their own vesting and distribution schedules depending on when the rewards are earned from the partnered projects.
Use of Earnings
The ADA generated from the Iagon stake pools will be used in the following ways:
- 85% will be used to provide liquidity on exchanges.
- 10% will be used to buyback IAG (this is used for rewards above)
- The remaining portion will be used by the Iagon team and can potentially be used in the future for liquidity providers.
How to Participate
As in Phase I, participants can earn rewards through the following ways:
Delegate ADA to an Iagon Stake Pool:
👉 IAGL1 Pool ID: pool1ztk6dcj2nc3plnujf3ek6jqngtx8hcryufz56lyumemlcy2xxn0
👉 IAGL2 Pool ID: pool1e59h5m5vyggszyafel7zvcnsayt2de7wyxyezlrsmm4a679q3zr
Tutorial for how to stake to the IAGL pools here.
To maximize pool rewards and liquidity, please delegate to IAGL1 until it reaches full saturation. Your rewards are calculated the same regardless of which pool you are delegated too.
Provide liquidity to verified pools on our partnered DEXs:
Participants can earn rewards by providing liquidity to any of the verified IAG-ADA or IAG-USDM pools across most Cardano DEXs.
Links to the official partner DEXs can be found here:
| IAG-ADA | IAG-USDM |
|---|---|
| Minswap | Minswap |
| Wingriders | - |
| VyFinance | - |
| Splash | - |
| Saturn Swap | - |
When selecting tokens to provide as liquidity, be sure to choose IAG and ADA (or USDM) as the pair, and double-check that the pool is verified to ensure your participation in the program.
How Rewards Are Calculated
Rewards for participating in the Liquidity Program are based on the amount of ADA delegated + length of delegation; and/or amount of liquidity provided + how long liquidity is provided.
Rewards will vary in their distribution dependent on the token earned.
All rewards tokens will be made available 73 Epochs (12 months) after the period in which they were earned.
Example: If You earned rewards in Epoch 848, the rewards will be claimable in Epoch 921.
This distribution timeline is subject to change dependent on the method on distribution.
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:
- Amount of liquidity provide
- How long you provide liquidity
- Amount of ADA you delegate to one of the Iagon stake pools
- How long you delegate ADA to one of the Iagon stake pools
This convenient tool takes the guesswork out of calculating your potential rewards and makes it easier for you to understand the benefits of participating in our liquidity rewards program.
How are rewards calculated?
For those who are interested in the technical and mathematical details of how rewards are calculated and the thought process behind it, we use such reward computation function that would meet the following requirements:
We use a reward computation function that meets the following requirements:
- 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, as 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:
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)
- α is the degree of a.g. around 1.2m but this needs to be determined
- β 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. An example of such a function is:
Where:
- Nγ 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)
- γ is the damping coefficient (higher values of γ will make this component stick close to 1 for 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:
Where:
- Pd is the fraction of a person's delegated tokens compared to the total volume (a real number between 0 and 1)
- ε is the coefficient determining how the LSPO increment depends on Pd (an ε of 1 would mean a linear relationship, higher values would favor high percentages disproportionately, and lower values would favor moderate participation)
- δ is a coefficient limiting the maximum reward boost due to participation in the LSPO (if δ 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; δ ≈ 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):
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 DripDropz platform.
For community members who participated in our original ISPO, rewards can be claimed at DripDropz Rewards are made available every month.
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 delegators 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.
Commitment to Safety
Our commitment to the safety and security of our pools 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 pools to multiple rounds of security audits.
Our efforts don't stop there. We're constantly monitoring the performance metrics of our pools through automation and vigilant oversight. We've even gone the extra mile by setting up timesync devices and redundancies to ensure our pools never miss a beat.
We take our responsibility seriously, and our users can rest assured that their assets are safeguarded at all times.
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 May 2025 (Epoch 483) and will run until May 2025 (Epoch 556)
How do I claim rewards from the Liquidity Program?
Rewards for participating in the Liquidity Program will begin distribution following their respective release schedules. The distribution method is yet to be announced.
Are the Rewards for Phase II of the LSPO different from Phase I?
Yes, phase two will see the introduction of additional tokens, Saturn, NVL, all reward tokens from NVL staking(IAG, MNT, FACT, COPI) and the last token is TBA. Additionally, the IAG rewards distribution through phase II will be smaller than during phase I as proceed from the Iagon stake pools will be used to buy back IAG for distribution as rewards.