Dev Protocol Geyser Launches
By: Scott, Dev Protocol
Tags: Defi, Liquidity Mining, Yield Farming, Cryptocurrency, Open Source

Dev Protocol is excited to launch Geyser, our Uniswap liquidity program. Creating a liquid market for the DEV token is crucial for providing creators and their supporters the opportunity to leverage Dev Protocol. We’ve chosen Ampleforth Geyser model for our liquidity program because it rewards long-term liquidity providers.

The Dev Protocol Geyser distributes DEV tokens to those who provide liquidity on Uniswap V2. The more liquidity you provide, and for longer, the greater share of the DEV pool you receive. Dev Protocol is subsidizing Geyser with a maximum of 60,000 DEV tokens distributed to liquidity providers for a three (3) month period. The program begins on November 4, 2020, and ends on February 3, 2021.

User Flow

Deposit ETH and DEV into Uniswap V2 Receive UNI-V2 LP Tokens Stake those UNI-V2 LP Tokens in the Geyser

Once you’ve deposited staking tokens, you can check your current stake and reward amounts using the Geyser. You can add more staked liquidity whenever you want and there is no minimum lockup period. You receive your share of the Geyser pool when you unstake.

Reward Calculation

The more you stake and the longer you stake them for relative to others, the greater share of the unlock pool you receive.

Ownership share of the unlock pool is equal to: User_staking_token_time / Global_staking_token_time

Imagine there are two users in the system, Karen and Chad. Karen has staked 10 tokens for 1 day, Chad has staked 5 tokens for 3 days.

Karen_token_time = 10 tokens * 1 days = 10 Chad_token_time = 5 * tokens * 3 days = 15 Global_staking_token_time = (Karen_token_time) + (Chad_token_time) = 25 token_days Karen owns (10 / 25) = 40% Chad owns (15 / 25) = 60%

The ownership percentage is over the unlocked pool. As soon as you withdraw your staked tokens, you get your share of the currently unlocked tokens, irrespective of the locked tokens still waiting to unlock.

Ownership percentages and token unlocks are continuous, meaning they’re calculated block-by-block.

These percentages assume the maximum bonus from the bonus period has been met.

Bonus Period

The Geyser is meant to incentivize long-term liquidity providers. Geyser encourages users to keep your LP tokens staked for longer.

When you begin staking, you begin at a 1X bonus multiplier on your reward earnings. This multiplier increases throughout the trial period, to a maximum of 5X after one month. An easy way to think about it is: each additional day you hold, you receive ‘an extra X’ on your multiplier, up to a maximum of 5X. For example, holding for 15 days gives you a 2.5X multiplier, and holding for 30 days, a 5X multiplier.

‌If you withdraw half-way through month 1 (after 30 days), you would get half-way between 2X and 3X .

Each individual stake amount starts its own period. So if you stake two times then withdraw, the first stake and the second stake may have different bonus amounts. Withdrawn stakes always start with the newest staked tokens.

If this sounds complicated, there are really just two things to keep in mind:

1. Try to keep stakes for at least 30 days.

2. The Geyser interface always shows your current stake amount and reward balance.‌

Reward Allocation

The Dev Protocol Geyser liquidity program has a total reward allocation of 60,000 DEV. The amount will be added incrementally as the conditional formula is met.

‌Initially, 30,000 DEV will be supplied for the program. As the number of liquidity providers increases, the APY will progressively decrease. If liquidity providers rewards can’t sustain 50% APY then the remaining 30,000 DEV will be added.

The claimable reward amount is always ownership percentage * the number of unlocked tokens . A liquidity provider could earn a share from the added 30,000 DEV even if they staked before the reward was added.

‌If necessary, Dev Protocol will increase total rewards to ensure enough liquidity is provided.

Acknowledgments

We would like to thank the Ampleforth team for creating and maintaining Geyser. Specifically, we’d like to thank Nithin Krishna, Brandon Iles, and Ahmed Aly. Ampleforth Geyser operates under GNU General Public License v3.0.