# ITP LP Incentives

#### Infinite Trading Protocol Incentive Calculation

In the Infinite Trading Protocol, we provide weekly incentives to voters to make liquidity pool (LP) yields more attractive. These incentives are distributed proportionally based on the total liquidity provided, excluding the value of ITP tokens themselves.

**Variables**

* &#x20;L : The total liquidity in USD value, excluding the value of ITP tokens.
* &#x20;P : The current price of ITP.
* I : Total weekly incentives on ITP (2% of the total liquidity USD value on ITP)
* &#x20;$$LP\_j$$ : The USD value of the liquidity for each ITP pair, excluding the value of ITP tokens. The pairs are as follows:
* &#x20;$$LP\_1$$ :  ITP/VELO liquidity
* &#x20;$$LP\_2$$ :  ITP/wstETH liquidity
* &#x20;$$LP\_3$$ :  ITP/WBTC liquidity
* &#x20;$$LP\_4$$:  ITP/xOpenX liquidity
* &#x20;$$LP\_5$$:  ITP/DHT liquidity
* &#x20;$$LP\_6$$ :  ITP/OP liquidity
* &#x20;$$LP\_7$$ :  ITP/MAI liquidity
* &#x20;$$LP\_8$$ :  ITP/USDC liquidity

**Total Weekly Incentives**

$$
I= \frac{0.02 \cdot L}{P}
$$

**Incentive Distribution**

The incentives for each liquidity pool $$LP\_j$$ , denoted $$I\_{LP\_j}$$, are distributed proportionally based on the pool’s liquidity relative to the total liquidity:

$$
I\_{LP\_j} = \frac{LP\_j}{L} \cdot I \quad \text{for} \quad j = 1, 2, \ldots, 8
$$

This ensures that larger liquidity pools receive a higher portion of the incentives, while smaller pools receive proportionally less.&#x20;


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