5.7 FDT Liquidity LP Mining
In order to motivate more long-term value investors, FireDAO will launch a liquidity LP mining incentive for FDT. Each community member can lock the LP of FDT's main trading pair into the liquidity mining pool, and can mine the incentive token, FLM. The obtained FLMs can be exchanged for FDT and unlocked linearly in two years.
Different mining weight coefficients are determined by the different lock-up periods. The longer the lock-up period, the higher the mining weight. The protocol relies on the number of minted soul-locked tokens SBT-005 to implement specific reward policies.
During this lock-up process, the protocol casts two kinds of SBTs: SBT-001 and SBT-005. SBT-001 is mainly used to record the FDT comprehensive holdings information of this Soul Account, and SBT-005 is mainly used to record the liquidity mining information of this Soul Account. The entire ecology distributes FDT ecological incentives according to the position weight ratio of SBT-001, and rewards liquidity mining according to the position weight ratio of SBT-005.
The amount of SBT-001 minted is determined by the number of FDTs contained in the LP and the weight coefficient when the LP is locked. If the LP contains 10,000 FDTs now, locked for 3 months, and the weight coefficient is 3, 30,000 SBT-001s will be minted. At the same time, since the amount of FDT contained in LP is constantly changing, if the lock-up period matures and LP needs to be withdrawn from the mining pool, the same proportion of SBT-001 will be burned according to the proportion of withdrawn LP. If the lock-up period matures and LP is not withdrawn from the lock-up mining pool, this order will continue to enjoy the benefits of the original policy.
The amount of minted SBT-005 is determined by the number of LPs and the weight system when LPs are locked. In the case of current lock-up, 1 LP can mint 1,000 SBT-005. If it is locked for 3 months and the weight factor is 3, 3,000 SBT-005 can be minted by depositing 1 LP. At the same time, if the lock-up period matures and LP needs to be withdrawn from the mining pool, the same proportion of SBT-005 will be burned based on the proportion of withdrawn LPs.
FDT Liquidity LP Mining Weight
More specific policies on FDT liquidity LP mining are subject to future actual operating documents.
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