Rewards

(v1.0)

Rewards are given out to LPs as an incentive for them to provide their liquidity on DeepSwap. Total reward amounts are pre-determined and are awarded in equal amounts daily. The amount of rewards an LP stands to receive is entirely based upon how many DLP tokens they have, and their specific percentage of the pool.

For example, if an LP had DLP tokens amounting to 3% of the $DEP/ETH pool, they would be entitled to claim 3% of the daily $DEP/ETH rewards in the pool. Though just an example, one can see how these rewards could add up very quickly if they were to stay vigilant. It’s important to note that one’s percentage of a pool is not fixed by any means; if another user came by and deposited more liquidity into the $DEP/ETH pool, the first user’s percentage share of the pool would be diluted to a lower percentage, as there’s now more money in the pool.

Rewards are funded via swap fees (as noted above) and oftentimes also subsidized by individual teams in DeFi that are looking to drive more liquidity and action to their token. When a user decides to deposit their DLP tokens into a farm and they see that they stand to earn two types of rewards ($DEP and one other token), this other token is supplied by the individual team in charge of it while DeepSwap provides all of the $DEP rewards; these “double reward” farms are also known as Onsen farms.