Well, technically it’s 120x, but 100x is more common in crypto, so I went with that.
First of all, I would like to point out this very informative article written by @0x3639, which explains the Liquidity Bootstrap & Provisioning Campaign in great detail:
In crypto, the term 100x commonly refers to finding a gem that will get you an 100x on your investment.
But in this context, it’s actually about a combo of 2 multipliers that together can go up to 120x:
- the LP staking multiplier
- the liquidity bootstrap campaign multiplier (new)
It is also a powerful message that can be used by the marketing and sales teams in the community and it can be applied to many aspects:
- 100x adoption
- 100x scaling
- 100x tps
- 100x speed
After providing liquidity in the main pool, the provider can swap their LPs to NoM and stake the received ZTS LP token for a period between 1 and 12 months and a multiplier from 1x to 12x.
When Orbital distributes the rewards, it adds all the amounts staked together and splits the rewards to each stake entry based on the percentage it represents of the total amount.
For example, if there are 3 stake entries of 20 ZNN + 30 ZNN + 50 ZNN, once you add them together you’d get a total of 100 ZNN. When Orbital distributes ~500 ZNN, it will split the ~500 ZNN between all the stake entries, so the 20 ZNN entry will get 20% of the ~500 ZNN, which is ~100 ZNN.
However, if the 20 ZNN entry is staked for 12 months, with a multiplier of 12x and the other 2 entries are staked for 1 month with a multiplier of 1x, then the total would be calculated as 20 ZNN * 12 + 30 ZNN + 50 ZNN = 240 ZNN + 30 ZNN + 50 ZNN = 320 ZNN. This means the 20 ZNN entry now gets a 75% share of the ~500 ZNN rewards, which is ~375 ZNN.
The Orbital program distributes 561.6 ZNN + 1250 QSR every day. The contract also has a reserve of ~290k ZNN and ~674k QSR, out of which a configurable amount can also be distributed daily depending how and when we, the community, decide to do that.
With this is mind, I’m proposing a new multiplier of 1x to 10x, the Liquidity Bootstrap Multiplier, to be applied to the amount of rewards distributed daily like this:
- 1x multiplier if the LP has 0-1000 ETH (561.6 ZNN + 1250 QSR distributed daily)
- 2x multiplier if the LP has 1000-2000 ETH (1123.2 ZNN + 2500 QSR distributed daily)
- 10x multiplier if the LP has 9000-10000 ETH (5616 ZNN + 25000 QSR distributed daily)
This will be reset to 1x after the campaign ends or the Orbital program runs out of reserves (~290k ZNN + ~674k QSR)
The LP staking multiplier gets us 1-12X.
The liquidity bootstrap multiplier gets us 1-10x.
So we get a combined multiplier of 1-120x!
I want to get your feedback on this and to work together to find the best way to start this campaign.
During this campaign the community should coordinate marketing efforts to reach towards the defined targets.
Right now there are ~166k wZNN in the pool. The cap is at 100k wZNN. More liquidity can be added when at least 66k wZNN are removed from the pool and that can happen in 2 ways:
- LPs remove their liquidity
- ETH is swapped for more than 66k wZNN on Uniswap
Having a deep liquidity pool consolidated on the way up. Imagine if we reached 10000 ETH in the pool with 100k wZNN. 1 wZNN = 0.1 ETH? Crazy, right?
Did my best, but please ask and I’ll answer.