Liquidity provision is perhaps the most important aspect in propagating healthy decentralized financial markets. It is for this reason that many projects rely on “LP” tokens that proportionally reward liquidity providers in fees based on their contribution to an automated market maker (AMM) pool (i.e. USDC-ETH). When prioritized solely, LP rewards alone tend to focus on more individual and immediate investment aims; factoring earnings vs impermanent loss assessments at any given time. This creates more speculation than utilization of decentralized networks.
Bearing this in mind, Ratio Finance defines a unique approach for the distribution of $RATIO to its community. Ratio Finance has chosen to incentivize direct emissions; utilization of our platform itself will be rewarded with $RATIO. Incentivizing utilization and liquidity provision will create a sustainable trajectory for the growth of the Ratio Finance platform and its native governance token.
TLDR:
Complete tasks on Ratio Finance’s platform in order to earn $RATIO! Ratio rewards will be determined by many factors including liquidity provision on Raydium and utilization of the Ratio Finance platform. There will be a total of 300,000 $RATIO available for the first epoch of Ratio Finance’s mainnet.
Ratio Finance will be using a snapshot system to calculate $RATIO airdrops for users that have provided the most utility to Ratio Finance. 300,000 tokens of the total $RATIO supply will be made available for participants in the first epoch of the Ratio Finance Fairdrop. The first Fairdrop will last a month from the mainnet release.
In order to qualify for the Fairdrop, you must meet certain conditions. You must simply:
Deposit Collateral into Ratio Vault
Deposit stablecoin LP into a Ratio Vault.
Click set up vault to deposit your LP.
You will know that you have deposited successfully when you can see your LP in your Vault balance:
The following vaults are initially available:
Mint USDr
Once you have deposited collateral, use the Ratio Finance platform to deposit and lock up yield-bearing stable LP, initially from Saber, in order to mint USDr.
Click Mint to mint your USDr.
You will still gain yield on your assets that you deploy into the Ratio Finance vaults. While there are caps on how much USDr individual vaults and the protocol itself can initially mint, (for safety reasons), users can begin earning retroactive rewards by minting USDr the moment that the mainnet goes live. You need to pay back your USDr debt if you wish to claim the deposited LP. There are no liquidations in the first version of Ratio Finance.
Deposit USDr-USDC liquidity in Saber.
Take your minted USDr and an equal amount of USDC, and stake it in the Saber USDr-USDC pool. That’s it! The longer that you lock in your USDr-USDC LP, the more rewards that you will get in the Fairdrop.
Lock RATIO-USDC into Raydium.
Take RATIO that you have acquired and an equal amount of USDC and lock it into the Raydium farm. In addition to dual yield from Raydium, you will also earn extra incentives in the fairdrop the longer that you supply liquidity.
Those are all of the steps! It is worth noting that our on-chain algorithms reward holding USDr and RATIO in any form, whether it be deployed on our partner AMMs or simply in your wallet. Read below to understand how we calculate our rewards.
Understanding our Reward Distribution
The Ratio Finance platform uses the following formulas to calculate the total rewards that you are eligible to earn:
The first 2 equations follow a similar approach and compute the amount of $USDr and $RATIO hold by a user(i) . The $USDr and the $RATIO balance are computed based on:
the number of holders, the amount of USDr and $RATIO hold by the user,
the amount of $USDr and $RATIO in circulation,
the amount of $USDr and $RATIO that are staked and unstaked
The amount of tokens that are staked is multiplied by 2.5 which indicates that the amount of tokens staked per user will benefit from a multiplication factor. This shows how the users providing more liquidity will receive more money.
The third equation represents how the fairdrop works. Users will benefit from the fairdrop based on their balances of $USDr and $RATIO, which are each weighted by one coefficient 𝛂i and 𝝱i where i represents the user. The 2 coefficients are calculated based on the staking duration and are “boosters” as they are positively correlated to the aforementioned staking duration. The coefficient 𝛂i or 𝝱i will be closed to one when the staking period for a user is long and it will closed to 0 for the $USDr or/and $RATIO holders that staked the token(s) for a shorter period of time. Consequently, the boost is represented by the higher number of tokens users can receive through the fairdrop after staking their tokens for a relatively long period of time.
Gamma (“𝛄”) is a constant that ensures the normalization of the computation as it allows to ensure that the 300 000 tokens are fairly distributed amongst the eligible users.
Overall these 3 formulas show how Ratio aims to reward the users that participate and interact the most with the platform, which will be reflected to a certain extent in the staking period and the amount of $USDr and $RATIO held by a user.
As previously mentioned we have 300,000 $RATIO tokens of the total supply allocated for the first fairdrop. The first fairdrop will last 1 month from mainnet release. The claimable tokens will be distributed based on the number of the tasks completed in the first fairdrop.
(E.g: 25% of the claimable tokens would be allocated to each task if there are 4 tasks and 20% of the claimable tokens will be allocated to each task if there are 5 tasks.) The user will have a month to claim their tokens, which are fully unlocked at time of claiming.
Future reward epoch amounts will be determined by governance, as well as the conditions required for earning your full allocation of $RATIO.
The team of Ratio Finance thanks you for your continued support and contributions to our platform. If you have any questions, please reach out to us on our Telegram or Discord.
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