Liquidity Mining phase 2
When? - THE PROGRAM ENDED
The 2nd LM will run for ~3 months starting September 18th - December 17 2021. Starting block number - 13251289 Ending block number - 13842589
How?
Per the DAO vote on BIP#4 , the new LM is using UMA's KPI Option program to align the incentives of the different actors in B.Protocol. 90k BPRO tokens were deposited from the DAO reserve into an UMA's KPI Option contract to mint 30k uBPRO-BIP4 (ERC-20 tokens). The uBPRO-BIP4 tokens will be accumulated each block during the LM period by B.Protocol users according to their usage of the protocol, e.g., how much they deposit and borrow through the different integrated protocols.
For v1 users (MakerDAO and Compound) - the distribution will be 80/20 according to Borrowed/Deposited funds. For v2 users (Liquity) - the distribution will be in full for Deposits of LUSD.
If B.Protocol's TVL reaches or surpasses $150m at the end of the LM period (KPI achieved), then each uBPRO-BIP4 option token will be redeemable for 3 BPRO tokens. Otherwise, if the TVL < $150m then each uBPRO-BIP4 will be redeemable for 1 BPRO token and the remaining 60k BPRO will be returned to the DAO Reservoir account.
Redeeming the option in return to BPRO token will be possible once the LM period is over via the UMA interface.
Here is a distribution breakdown example according to the current deposits and borrowed funds in B.Protocol:
MakerDAO
Compound
Liquity
Total
Deposit ($m)
Weight
10
0.2
48
0.2
13
1
$71m
Borrow ($m)
Weight
3
0.8
5
0.8
--
$8m
Total Weight (m)
4.4
13.6
13
31
uBPRO-BIP4
Distribution
4.2k
13.2k
12.6k
30k
BPRO distribution If TVL < $150m
4.2k
13.2k
12.6k
30k
BPRO distribution If TVL > $150m
12.6k
39.6k
37.8k
90k
At current weights, if user A has a $0.3m deposit in Maker with $0.1m debt, and $0.7m deposit in Compound with $0.2m debt, and a $1m LUSD deposit in Liquity - she would get uBPRO-BIP4 according to this calculation:
[(0.3m+0.7m)*0.2 + (0.1m+0.2m)*0.8 + 1m*1]/31 * 30,000 = 1393 uBPRO-BIP4
If B.Protocol's TVL > $150m at the end of the LM period, these 1393 uBPRO-BIP4 will be redeemable for 4180 BPRO.
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