# Additional Rewards for LPs

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:

| <p><br></p>                                   | Year 1 | Year 2 | Year 3 | Total   |
| --------------------------------------------- | ------ | ------ | ------ | ------- |
| Yearly LP Pool (Amount of tokens distributed) | 16.0M  | 8.5M   | 5.5M   | **30M** |

&#x20;                                                       <mark style="color:blue;">**Table 7.**</mark> Tokens distribution schedule for the LP program

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

<figure><img src="/files/qjpBczPvXYtLbqsktGxo" alt=""><figcaption></figcaption></figure>

Where:&#x20;

* 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.&#x20;

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

<figure><img src="/files/hDzoeiY1fQTETLWZB0ir" alt=""><figcaption></figcaption></figure>

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.


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