Infinite Trading
  • About us
  • Introduction
    • 💎What is Ethereum?
      • 🔮Scaling Solutions
        • 🟣What Is Polygon?
        • 🔴What is Optimism ?
        • 🔵What is Base ?
      • 🐇Rabby Wallet
      • 🦊MetaMask
    • ❔What is dHedge Protocol ?
    • What is Velodrome Finance ?
    • 💻Infinite Trading App
      • ✨Benefits
      • 🛠️Getting set up
      • 💰Understanding Fees
  • 🟣ITP Token
    • ➗Token Distribution
    • 🔄Tokenomics
      • ITP LP Incentives
    • 🔒Staking v1
  • ⚙️The Protocol
    • Infinite Trading Velodrome Relayer
      • What is a Velodrome Relayer?
    • 📚Infinite Trading API v1
      • ⛽Creating and Linking Gas Wallets
      • 🤖Trading Bot Setup
      • 📈Trading Endpoints
      • 📑Data Endpoints
      • Index Rebalance Endpoint
      • AI Endpoint
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  1. ITP Token
  2. Tokenomics

ITP LP Incentives

Incentives help keep the ITP Liquidity Providers (LP's) yields at competitive rates.

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

  • L : The total liquidity in USD value, excluding the value of ITP tokens.

  • P : The current price of ITP.

  • I : Total weekly incentives on ITP (2% of the total liquidity USD value on ITP)

  • LPjLP_jLPj​ : The USD value of the liquidity for each ITP pair, excluding the value of ITP tokens. The pairs are as follows:

  • LP1LP_1LP1​ : ITP/VELO liquidity

  • LP2LP_2LP2​ : ITP/wstETH liquidity

  • LP3LP_3LP3​ : ITP/WBTC liquidity

  • LP4LP_4LP4​: ITP/xOpenX liquidity

  • LP5LP_5LP5​: ITP/DHT liquidity

  • LP6LP_6LP6​ : ITP/OP liquidity

  • LP7LP_7LP7​ : ITP/MAI liquidity

  • LP8LP_8LP8​ : ITP/USDC liquidity

Total Weekly Incentives

I=0.02⋅LPI= \frac{0.02 \cdot L}{P}I=P0.02⋅L​

Incentive Distribution

The incentives for each liquidity pool LPjLP_jLPj​ , denoted ILPjI_{LP_j}ILPj​​, are distributed proportionally based on the pool’s liquidity relative to the total liquidity:

ILPj=LPjL⋅Iforj=1,2,…,8 I_{LP_j} = \frac{LP_j}{L} \cdot I \quad \text{for} \quad j = 1, 2, \ldots, 8ILPj​​=LLPj​​⋅Iforj=1,2,…,8

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

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Last updated 8 months ago

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