Phantasma never stops! We have mentioned in the past that we were working on a proprietary mechanism for incentivizing liquidity providers on Uniswap and PancakeSwap. Today we are proud to share with you the details of this novel, cross chain multi DEX liquidity incentivization protocol!
Sustainable cross chain rewards
In line with our focus on enabling cross chain mechanisms to break down the barriers between different blockchains, Phantasma Pharming is a unique cross chain liquidity incentivization protocol!
Phantasma Pharming rewards those who provide liquidity on other blockchains with native SOUL and KCAL on the Phantasma mainnet. Now, there are good and bad ways to do this — sustainable and temporary ones. Guess which one we chose?
Sustainable liquidity incentivization is imperative, and ensures that rewards for providing liquidity can be ongoing forever, instead of burning through a pool of team funds over a short amount of time. For this reason Phantasma Pharming reward pools derive their funds from parts of the 1% ecosystem incentive allocation of the annual SOUL inflation, as well as KCAL generated from the team’s staked SOUL.
Reverse staking rewards for liquidity providers!
Another unique feature of Phantasma Pharming is that you earn reverse rewards for your liquidity contribution. Contributing SOUL liquidity earns KCAL rewards, similar to staking on mainnet — ie you don’t lose out on that sweet KCAL by choosing to provide liquidity on Uniswap or Pancakeswap. Contributing KCAL liquidity earns SOUL rewards — yes, that is correct — you can earn the governance token by providing liquidity with the fuel token! For those who have been wondering what to do with their stacks of KCAL, you now have the answer.
No unnecessary extra steps and hurdles
The Phantasma team values the elegance of simplicity. With multiple other liquidity incentivization programs, you would be required to stake your liquidity pool tokens — your only proof that you own your tokens in the liquidity pool — in a smart contract. Often this is a smart contract written and deployed by a 3rd party, which the user needs to trust not to run off with the funds through a flaw in the contract.
With Phantasma Pharming however, there is no need to touch your LP tokens, let alone move them out of your wallet. Simply provide liquidity and receive your LP tokens automatically, log into the Phantasma Pharming website, and you’ve started earning Pharming rewards! This is made possible by the Pharming mechanism which automatically allocates native SOUL and KCAL rewards to the Phantasma mainnet address corresponding to the BSC and ETH addresses holding the LP tokens.
Simply log in to the Pharming website with the wallet you used to provide liquidity, and you will see your rewards growing — and claim them whenever you wish, without caring about either Ethereum or Binance Smart Chain transaction fees!
What are the rewards — and from where?
Breaking down the numbers, here we go:
KCAL liquidity rewards
- 0.2% of the annual inflation, or approximately 200,000 SOUL per year, is dedicated to each of the KCAL pools on Uniswap and PancakeSwap. This amounts to approximately 16,667 SOUL per month shared by KCAL liquidity providers on PancakeSwap, and the same amount shared among KCAL liquidity providers on Uniswap
- As an example, providing 200,000 KCAL liquidity in a KCAL pool of 2,000,000 would earn 1,667 SOUL every month in Pharming rewards (that’s an unlimited ROI compared to letting your KCAL sit idle in your wallet!) — on top of 10% of the PancakeSwap trading fees
SOUL liquidity rewards
- 1,095,000 KCAL annually, generated by staked team funds, be allocated to each of the SOUL pools on Uniswap and PancakeSwap. This amounts to approximately 90,000 KCAL per month (3,000 KCAL per day) shared by SOUL liquidity providers on PancakeSwap, and the same amount shared among SOUL liquidity providers on Uniswap
- As an example, providing 50,000 SOUL liquidity in a SOUL pool of 500,000 would earn 9,000 KCAL every month in Pharming rewards (that’s three times the normal staking rewards!) — on top of 10% of the PancakeSwap trading fees
Three’s a charm – V3 for the win!
Initially Pharming rewards on Uniswap were meant to be implemented on V2 of the Uniswap protocol due to the comprehensive similarities between Uniswap V2 liquidity proofs (LP tokens) on Ethereum and PancakeSwap liquidity proofs on Binance Smart Chain. However, our developers managed to decipher and calculate liquidity based on Uniswap V3 LP NFT metadata, and Pharming has thus been implemented for the latest iteration of the Uniswap protocol..
Your Phantasma Team and the Phantom Force
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