Cryptoindex Whitepaper
  • INDX Whitepaper
  • Abstract
  • Content
  • Introduction
    • Indexes: Strong in Traditional Finance, Blue Ocean in Crypto
    • Intended audience
  • Platform Features
    • Benefits
    • Functionality
    • Index Creation and Management Process
    • Fees Structure
    • Changing the Composition of Indexes
  • INDX Tokenomics
    • INDX Tokenomics
    • Allocations, Lockup, and Vesting
    • Core Utility of INDX
    • Additional Utility of INDX
  • More details about INDX utility
    • Creators Subscription
    • Index Holders Fees
    • Incentivization Program
    • Additional Rewards for Index Holders
    • Additional Rewards for LPs
    • Advertising Promotion
    • Referral Program
    • Burning
  • Security
    • Security
  • Risks
    • Risks
  • Project Roadmap
    • Project Roadmap
  • Legal Disclaimer
    • Legal Disclaimer
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  1. More details about INDX utility

Additional Rewards for LPs

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Last updated 9 months ago

Cryptoindex aims to democratize index access for the entire cryptocurrency space in an effort to expand its influence beyond the platform. One possibility to achieve this goal is the creation and use of decentralized pools.

Decentralized liquidity pools will stimulate initial interest from users to try the product, so the platform has developed an incentive program designed for the creators of such pools and liquidity providers.

Cryptoindex will incentivize the following decentralized pools in the first phase of the program:

  • INDX/USDT pool.

  • The pool of “base indexes” created by the platform in pairs with INDX.

The list of pools will be updated thereafter. Up-to-date information about the incentive program will be provided on the platform's website.

Tokens for the incentivization program are distributed from the Community Rewards allocation. The distribution of tokens by year is presented in Table 7:

Year 1

Year 2

Year 3

Total

Yearly LP Pool (Amount of tokens distributed)

16.0M

8.5M

5.5M

30M

Table 7. Tokens distribution schedule for the LP program

Within the year, tokens will be allocated by month according to the function below:

Where:

  • i - month number, i [1,36]

  • k - year number, k [1,3]

  • Monthly LP Pooli - the number of tokens that are distributed equally during the month.

  • Yearly LP Poolk - number of tokens that are distributed in total during the year, according to Table 7.

  • 100/i0.25 e-0.015ii=12k-1112k100/i0.25 e-0.015i - function, which stipulates that liquidity providers will be incentivized more at the beginning of the project cycle.

More information on the distribution of tokens under the incentive program by month is provided in the graph below:

The actual distribution of allocation to specific pools is made on the basis of the platform's decision. Within pools, funds are distributed to liquidity providers in proportion to their share in the pool.

After the distribution of rewards, over the course of 36 months, additional funds for rewards will be sourced by the protocol through a buyback mechanism.