Liquidity Pool & LP Rewards
NOTE: LP REWARDS START ON MARCH 24th
PKM:SPS LIQUIDITY POOL
This pool allows users to exchange tokens between SPS and PKM. You can read how to swap back and forth here.
INITIAL PKM:SPS LIQUIDITY As described in Token Dynamics some PKM was set aside to help increase the size of the PKM:SPS pool.
The amount added at launch of the pool was 810k SPS and 8.1Million PKM. The SPS was provided by team members and a partnership with Splinterlands. Team contributions of SPS were brought in from their own personal holdings (putting their money and faith in the project). The @
PeakMonsters account itself will eventually also add to the Liquidity Pool.USER CONTRIBUTIONS
After creation of PKM:SPS any account is allowed to add PKM:SPS to this pool LP REWARD POOL Rewards will be given to contributing users to incentivize a large more stable PKM:SPS pool.
PeakMonsters team will donate profits to a contract-pool that will contractually and daily distribute tokens to users that add to the PKM:SPS pool. Before tokens are sent to the distribution contract the token donations will be set aside in this account @pkm-reward. In practice the more activity on peakmonsters.com market the more value will be added as rewards.
LP REWARD POOL PERIOD
We are starting with a 120 day period.
This means that the total rewards will be distributed during that 120 days. Immediately after starting the reward pool period we will start saving up for the next one (@pkm-reward account)
We reserve the right to add to the reward pool before each period ends.
This is the best and fairest technical method to interact with the hive-engine contract.
If Hive-engine creates a new distribution method we can adapt.
We will try to keep the length between 90-180 days.
INITIAL REWARDS As of March 17th the initial rewards are
Example: $50,153 distributed over 120 days would be $417 a day
We will look to our users to see what tokens they would like in the pool. This may result in swapping tokens for others including buying PKM from the market to add to the reward pool.
Restrictions on team member liquidity
Team members getting PKM set aside to help Liquidity will not be eligible for Liquidity Pool Rewards. Also they will not be able to pull their liquidity for a minimum of 12 months or they will forfeit the PKM split. Team members may opt to just buy PKM like other users to be able to access profit sharing and not lock up their SPS.
TOURNAMENTS Each month we will donate some profits to tournaments as requested by our tournament organizer.
NOTE: There is no pool of PKM that is freely available for tournament prizes so any PKM awarded during tournament must have been purchased by PeakMonsters or collected via tournament entry fees.
QUESTION: STAKING VS LIQUIDITY POOLS
Staking requires less work and less risk than adding tokens to a liquidity pool so we understand why people are interested in it... we all want to "earn more while doing less."
- First of all we PeakMonsters.com and PeakD.com will work on developing easier UI (user interface) for adding and removing from Liquidity Pools to reduce the work needed.
- Secondly we believe for the long-term stability of the PKM token it is important to create larger liquidity pools and also to reward those who provide more to the ecosystem and potentially risk more. "What we obtain too cheap, we esteem too lightly" -Thomas Paine
- Staking systems can work well as a way to inflate a currency to already invested parties. We have already decided primary inflation of PKM comes as bonus airdrop to those using PeakMonsters.com marketplace.
- Additionally the technology provided by Hive-Engine was simple and already developed. We can donate profits to the contract and the contract will be responsible for fair and consistent distributions.