Uniswap v2 staking discontinued
Jul 12, 2021
The Uniswap v2 liquidity staking rewards program was successfully ensuring liquidity for the trading pair DEPAY/ETH.
We have decided to discontinue the rewards program on Ethereum due to our upcoming multichain expansion plans and the fact that, thanks to Uniswap v3, there are now more attractive ways for our existing supporters to be rewarded for providing liquidity (more info in the article).
The DePay team thanks all those who have supported us with liquidity and guarantee that all rewards will be paid out according to the schedule below.
The DEPAY/ETH pair on Uniswap v2 will continue to be the main trading pair until it is organically surpassed by the accumulated liquidity on v3.
There are no longer any plans to launch on any CEX nor additional DEX on Ethereum. This is to ensure DEPAY liquidity is concentrated and that early liquidity providers are motivated to earn on the fees accumulated by people trading DEPAY/ETH.
One million excess $DEPAY tokens have been burnt 🔥. These were originally reserved as available rewards for the remainder of the staking program.
This also leaves us with an additional ~1.2M DEPAY tokens which have originally been planned for staking rewards according to our tokenomics. We will continue to evaluate possible liquidity staking rewards for upcoming multichain launches (e.g. PancakeSwap) to allocate them as rewards or to burn them.
If you have been following our latest news, you might already have an idea as to what the surprise will entail. We encourage you to sign up to our newsletter so that you don't miss out on the announcement.
Reasons for this decision
The initial liquidity staking reward program was originally designed for Uniswap v2. In the Uniswap v2 protocol, people that provide liquidity are covering 100% of the risk in case the price pair moves in either direction for either asset (e.g. through Impermanent loss).
These risks have been compensated for by providing rewards to people that provide and lock Uniswap v2 liquidity.
Fast forward to Uniswap v3, liquidity providers have far less risk than in v2.
Besides being the most capital efficient protocol in existence, liquidity providers now have the flexibility to manage their own risks by creating liquidity bands in price ranges matching their strategy and risk profile.
Due to the fundamental increase of flexibility and risk reduction of Uniswap v3, it is no longer economical to continue paying the same rewards (or any rewards at all) to people providing liquidity. This is due to the fact that the fees earned in DEPAY’s Uniswap v3 pairs are 4000x more capital efficient than in Uniswap v2.
Our Uniswap v2 staking program reached a TVL (total value locked) of ~1 Million USD (valued at ETH’s latest all time high on 12th of May 2021). The total staking results are composed of 3’267 Uniswap v2 DEPAY/ETH LP which translate into ~133’369 DEPAY tokens and ~100.52 ETH at the time of this writing.
A total reward of 61’589 DEPAY tokens will be distributed monthly (from December 2021 to Mai 2021) according to the following reward release schedule.
In December 2021, a total reward of 16'519 DEPAY tokens will be paid out pro rata to those wallets that have staked in December 2020. 👉 Link to related contract
In January 2022, a total reward of 11'678 DEPAY tokens will be paid out pro rata to those wallets that have staked in January 2021. 👉 Link to related contract
In February 2022, a total reward of 21'539 DEPAY tokens will be paid out pro rata to those wallets that have staked in February 2021. 👉 Link to related contract
In March 2022, a total reward of 6'750 DEPAY tokens will be paid out pro rata to those wallets that have staked in March 2021. 👉 Link to related contract
In April 2022, a total reward of 3'729 DEPAY tokens will be paid out pro rata to those wallets that have staked in April 2021. 👉 Link to related contract
In May 2022, a total reward of 1'374 DEPAY tokens will be paid out pro rata to those wallets that have staked in May 2021. 👉 Link to related contract
Will there be a DEPAY rewards program again?
Not in the previous form. However, we can already tell you that current and future $DEPAY liquidity providers will receive certain rewards in the form of privileges (starting in the near future). If you want to continue supporting us at this point or after the token unlock, you can earn money from pool transactions by providing liquidity to DEPAY/ETH or DEPAY/DAI on Uniswap v3.
In this article we describe why Uniswap v3 is more profitable for liquidity providers than v2. We also show you step by step how you can earn money passively by providing liquidity to DEPAY pairs on Uniswap v3 with no lock and the freedom to transfer your tokens back to your wallet at any time.