Prime’s First Liquidity Mining Program
Tags: Yield Farming, Liquidity Mining, Liquidity Pool, Primedao, Balancer Protocol

Prime’s First Liquidity Mining Program

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Learn more about the Prime Liquidity Pool Manager

In order to bootstrap liquidity for the PRIME token, PrimeDAO will initiate a liquidity mining program — alternatively known as yield farming — for a Balancer pool. Liquidity mining refers to the process of depositing designated tokens to a given decentralized liquidity source and receiving a reward in return. In our case, participants who deposit liquidity will receive PRIME as a reward.

This pool will be the first smart pool governed by PrimeDAO. With the mainnet deployment of Prime at the end of November, ownership of the pool will be transferred to the DAO for governance using the Prime Liquidity Pool Manager.

As a friendly reminder, PRIME functions as a utility and reward token in the Prime Ecosystem, with value generated from its products and protocols flowing to PRIME using token sinks. Moreover, when the DAO launches PRIME holders will be able to lock their PRIME to generate voting rights in the DAO. More information on PrimeDAO’s tokenomics can be found here.

ℹ We invite participants who are confused by Liquidity Mining to reach out and post questions to the #ido channel on Discord.

🌊 Liquidity Mining Parameters

Expected Start Date: The pool will be deployed as soon as possible. An announcement will be made upon deployment. The farming contract and Prime Liquidity Pool Manager Interface will be launched at 16:00 UTC on November 20th, 2020.

Rewards Contract Duration: 1 Month

PRIME Token Contract: Etherscan

Initial Pool Weights: 20% wrapped ETH (“WETH”) and 80% PRIME. These weights mean that participants are taking a bullish position on PRIME by providing liquidity. The DAO may choose to adjust these weights once it has taken over pool governance — participants should keep an eye on the DAO’s governance processes in the future.

Pool Link: Balancer

Pool Seed: The pool will be seeded with approximately $100,000 worth of PRIME at the time, and approximately $25,000 worth of WETH. With this, the approximate start value of the pool will be $125,000 with this seed. The valuation of PRIME seeded to the pool will be 1 Batch greater than the current Batch, creating an arbitrage opportunity for early IDO participants. It will pay to be an early liquidity provider!

PRIME seeded to the pool will be valued one batch higher than the current batch being sold, creating an arbitrage window for early IDO participants who provide liquidity to the pool.

Rewards distributed: 500,000 PRIME, or approximately 16,666 PRIME/day. Rewards are only distributed to participants who stake their BPRIME — the liquidity provider token received in exchange for providing liquidity to the pool — to the rewards contract. See below instructions for this process.

One final note: this pool is not designed to offer high and unsustainable rewards. It is a means for supporters of the project to receive a reasonable reward for helping bootstrap liquidity, in line with principles of sustainable decentralized finance. In the future, the DAO may choose to run additional campaigns, and has a large incentives budget to do so.

🏁 How to Participate