Diamond Mining 💎 ⛏
Premia’s official Liquidity Mining program for option pool LPs
Premia is taking a calculated approach to liquidity mining, in coordination with the release of Premia’s peer2pool options AMM and marketplace. This program is aimed at the long term growth and sustainability of Premia.
This is not a farm. There is no pool 2. Premia will be incentivizing the protocol’s options pools at launch on November 1st with PREMIA token rewards, to encourage capital to be deposited where it is needed most on the platform.
Due to how the protocol works, increased returns for LPs will often result in lower option prices for traders, which in turn will result in higher protocol volumes and higher staking rewards for PREMIA holders. A win, win, for everyone involved. 🤝
✨💧 Emissions
Premia will begin with an emission rate of 0.5 $PREMIA per block, distributed evenly between the 6 pools available. The reward distribution will reflect the following per pool:
- 16.67% - WETH/DAI Call [WETH deposits]
- 16.67% - WETH/DAI Put [DAI deposits]
- 16.67% - WBTC/DAI Call [WBTC deposits]
- 16.67% - WBTC/DAI Put [DAI deposits]
- 16.67% - LINK/DAI Call [LINK deposits]
- 16.67% - LINK/DAI Put [DAI deposits]
Each emission stream is distributed pro-rata based on the ownership percent of the individual LPs within that pool (i.e. if a liquidity provider owns a 10% share of the WETH/DAI pool, they would receive 10% of that 16.67% reward emission, ~0.08335 PREMIA per block).
This may seem familiar to experienced DeFi farmers and LP’s as the mechanisms are quite similar to farming $SUSHI in the original SushiSwap pools, or later in Sushi’s Onsen program.
Premia chose to begin with 0.5 $PREMIA per block with the goal of keeping emissions relatively low in order to minimize yearly dilution and preserve the token value for our diamond hands. đź’Ž
This being said, Premia will be actively monitoring the pools and has the ability to alter the per-block emissions or the allocation percentage of any of the pools, if the community feels that it is necessary at any point in time.
Pool Deposit Caps
Each individual pool will have deposits initially capped at 1 million dollars of token value. This means that a total of 6 million dollars of capital (liquidity) will be allowed to be deposited to the Premia pools at launch. This initial cap is to ensure stability in the Premia protocol as it scales from zero to one. The pools will be under active monitoring and gradually increased until the caps are fully removed, at a later date.
Olympus Pro
Premia has always seen the importance of protocol-owned-liquidity, as the protocol is currently the largest owner of the SushiSwap PREMIA-WETH liquidity pool. Premia views Olympus Pro as a natural extension to our existing protocol-owned-liquidity, and in an 11th hour decision by the community, the proposal to join Olympus Pro’s cohort 3 was successfully passed on October 26th.
Premia will join Olympus Pro and go live on November 8th, offering $250k worth of PREMIA in exchange for bonding PREMIA-WETH LP tokens, increasing the amount of protocol-owned liquidity. The future of DeFi 2.0 is bright, and we’re excited to be a part of building it with our Ohmies!
Please note that Olympus Pro “bonding” is simply a vested exchange for liquidity provider tokens, these are not bonds or bond-like securities as in “stocks and bonds”.
We look forward to the mainnet launch on November 1st, and if there are any questions that any of our readers have prior, please join us in discord!
