We’re thrilled to announce that the Unitus protocol has officially launched on November 2nd! While we’ve already provided an overview of our protocol in a previous article, today, we’re excited to dive into the specifics of the UTS token launch and into how you can earn rewards on Unitus.
How does Liquidity Mining work on Unitus Finance?
To align the interests of its users and introduce to DeFi a new form of innovative and sustainable tokenomics, on November 15th, Unitus will launch its $UTS token together with the Bonded LP (BLP) feature to manage UTS emissions.
With the BLP, although anyone who uses Unitus for Lending and Borrowing actvities can earn $UTS emissions, only those who also contribute liquidity for the UTS/DF and/or UTS/USX pairs on designated DEXes can boost their $UTS rewards up to 4x.
Let’s delve deeper:
As illustrated in the table below, upon launch, two pairs are whitelisted in the Bonded LP (BLP) system: UTS/DF and UTS/USX. Each of these pairs has been assigned a specific mining weight, denoted by the respective values.
Note that the pairs available to BLP as well as the values assigned to each are subject to change proposed and approved by the Unitus governance.
Here’s the set of formulas Unitus will rely on to distribute its emission:
Given:
- BLP1 = value of user’s UTS/DF in $
- BLP2 = value of user’s UTS/USX in $
- weighted_lending = weighted supply OR borrow in $
Then, the emissions of UTS for each user is set according to weighted_total, which is in turn calculated as follows:
weighted_BLP = (BLP1 * f1 + BLP2 * f2)
if weighted_BLP > w_CAP * weighted_lending
weighted_BLP = w_CAP * weighted_lending
weighted_total = weighted_lending + weighted_BLP
ELI5: Some examples
To put it simply, the BLP unlocks three possible scenarios, let’s explore each of them:
- If a user is not interested in BLP and only uses Unitus for Lending and Borrowing assets, they will benefit from the base market rates as well as from the base UTS emissions.
- On the other hand, a user who both deposits on Unitus and provides liquidity for UTS/DF or UTS/USX can enjoy the base market rates and a boosted UTS yield, potentially reaching up to 4 times the yield compared to the first scenario.
- Users also have the option to participate in BLP with BOTH UTS/DF and UTS/USX pairs and access boosted UTS emissions.
Three Phases of emissions
- Phase 0: DF bootstrap
As the launch of the UTS token is undergoing, the first few weeks of rewards will be granted through $DF emissions. This decision was formally endorsed by the dForce governance as part of the DIP059 proposal, which you can review here. This preliminary phase is scheduled to conclude on November 17th, coinciding with the launch of UTS and the BLP system.
- Phase 1: UTS emissions
Starting from November 15th, DF emissions will cease, and users will commence earning UTS rewards. Concurrently, with the introduction of the BLP system on the same day, users will have the opportunity to amplify their rewards.
As expressed above, Phase 0 and Phase 1 will both be running from the 15th to the 17th of November 2023. Double campaigns, double rewards!
- Phase 2: Cruise Launch
In the near future, Unitus will be transitioning to fully on-chain liquidity mining systems, eliminating the need for snapshots. We will provide further in-depth information about this phase upon its launch.
UTS Distribution
While the weekly emissions of UTS can be optimized periodically to align with market demand, the initial distribution, commencing on November 15th, can be viewed on our forum by clicking here.
FAQ
Which DEXes have been designated for providing liquidity and enhancing UTS rewards?
Access to boosted UTS rewards is exclusively available for whitelisted BLPs created on the following DEXes and staked on Unitus dapp. For detailed information, refer to the next paragraph.
How will Unitus check users’ deposited capital and participation to BLP?
To be eligible for boosted UTS rewards, users have to create LP for the whitelisted pairs and on the designated DEXes and stake them on the BLP section on the Unitus dapp.
To check users’ usage of Unitus, snapshots will be taken at random intervals throughout each day, with a minimum of 2 snapshots and an interval between 6–18 hours, up to 6 times per day. The time interval between two snapshots defines the duration of the earlier snapshot’s weight.
How can users claim their UTS rewards?
The distribution of the UTS emissions will occur weekly, and users will be able to claim their rewards manually on the Unitus dapp.
Do users need to lock their LP to earn boosted rewards?
No, it is not required to lock UTS/DF nor UTS/USX to unlock boosted rewards.
