CAVIAR Airdrop

Welcome to the CaviarNine Liquidity Incentive Program, a groundbreaking initiative by the leading project on Radix aimed at revolutionising the DeFi landscape by empowering our community. This program is meticulously designed to bolster the liquidity of our decentralized exchange (DEX) platform and enhance the Total Value Locked (TVL) on Radix. By encouraging community members to become liquidity providers (LPs) in our select pools, we're not only benefiting LPs but also elevating the trading experience for the entire Radix community.

Overview of the Liquidity Incentive Program

The Liquidity Incentive Program is our latest endeavour to increase platform liquidity and TVL on Radix. This initiative invites community members to contribute tokens to specific incentive pools, becoming LPs and earning rewards in the form of CAVIAR tokens. These rewards are calculated based on the amount, duration, and activity of your liquidity contribution, with a particular emphasis on active liquidity—tokens that are near the current market price, thus maximising swapping potential.

Replacing the CAVIAR Airdrop

This program supersedes the previously announced CAVIAR airdrop, aligning more closely with the timing of RDX Works liquidity incentives. It represents a more integrated and strategic approach to rewarding our community for their contributions.

How It Works: Simple, Engaging, Rewarding

Becoming a part of this program is straightforward and potentially lucrative. By contributing tokens to any of our incentive pools, you become eligible for CAVIAR rewards. These rewards are designed to recognise and incentivise the provision of active liquidity, enhancing the overall trading efficiency on our platform.

Multiple Rewards

Participants can expect to receive multiple forms of rewards, including:
  • Airdrop Rewards: An allocation of 500,000 CAVIAR will be distributed weekly to each of the selected incentive pools, with airdrops scheduled for the coming months.
  • Fee Income: LPs will continue to earn their share of trading fees generated within the liquidity pools, in addition to the airdrop rewards.

Selected Pools

The first pool to be included in this program is the CAVIAR/XRD pool, featuring a weekly allocation of 500,000 CAVIAR rewards. Additional pools will be announced in subsequent weeks.

What is Active Liquidity?

In the context of our CaviarNine Liquidity Incentive Program, 'Active Liquidity' refers to the tokens within a liquidity pool that are available for trading at or near the current market price. Our program rewards liquidity providers based on their contribution to these critical price ranges, which are determined by a concept known as 'bins'.
Weekly rewards for liquidity providers are determined by comparing their active liquidity to the total active liquidity in the pool. The more a provider's liquidity falls within the active bins, the greater their share of the rewards

How Do Bins Work

Bins are discrete price segments within a liquidity pool. The active liquidity is contained within three bins: the bin where the spot price currently resides (the active bin) and the two bins directly adjacent to it. The width of each bin is a percentage that signifies how much the price can move within that bin. Our reward system takes frequent snapshots of each pool, recording the liquidity provided within these three bins.

Example: Active Liquidity Calculation

For illustration, let's consider the CAVIAR/XRD pool. In this pool, each bin is set to be 1% wide. When a liquidity provider uses the Advanced Add Liquidity widget and sets the Mid Price to the current spot price, setting the range to 3 bins wide will display the range of active liquidity.
The 'Min - Max' values represent the price range of active liquidity. For instance, if the Mid Price is set at 0.29648, with a bin width of 10, the active liquidity range would be 0.29238 to 0.30129.
Section of the Advanced Add Liquidity widget as of 2nd Feb 2024

Program Timeline

  • Launch Date: The program kicked off on Friday, 26th January 2024, starting with the first pool.
  • Duration: The program is slated to run for a minimum of 6 months, with the possibility of extension or modification based on its performance.

Reward Mechanics: Fair and Transparent

We employ a snapshot-based approach for calculating rewards, ensuring fairness and accuracy in the distribution of airdrops. Rewards are distributed on a monthly, rolling basis, proportional to each user's active liquidity in a given pool for the preceding weeks.

Terms and Insights

  • No Limits: There are no minimum or maximum contribution limits. Higher liquidity contributions, especially near current market prices, increase your chances of earning a larger share of the rewards.
  • Multiple Pools: Participants are free to contribute liquidity to various pools simultaneously, with rewards calculated separately for each pool.
  • Active Liquidity: Our program places a premium on liquidity that is near market prices, as it contributes more significantly to trades and overall market health.

Disclaimer

Please note that the rewards, timelines, and airdrop schedule outlined in this program are subject to change or termination based on participation levels and the overall performance of the program.