Premia Liquidity Mining Program
Premia v2 is going live soon and with it, a brand new liquidity mining program. We all love rewards so lets talk about how you can participate in the new liquidity mining program 🌊⛏
The Rundown on Premia Liquidity Mining
If you’re eager to get started, you’ll have to have a little bit of patience. The Premia Liquidity Mining program will begin as soon as we go live on mainnet. That date is still TBD, pending final audits, so be sure to stay tuned in to our Discord server and Twitter to make sure you know as soon as we go live.
💦 Liquidity Rewards 💦
On mainnet release, WBTC, WETH, and LINK call/put pools will be enabled. This means that users can provide liquidity in these tokens, or in DAI (to underwrite the put pools), to underwrite options on the Premia platform and earn yield. If you’re not familiar with how the Premia option pools work, check out our liquidity pool docs.
Each pool will be assigned a specific number of allocation points, these allocation points are used to determine the weighting of the rewards in each pool. This is similar to how Sushi Onsen works, if you’re familiar with their system then this will make a lot of sense to you. On launch, the weighting of all pools will be equal, but over time these allocation points can be used to incentivize specific pools that need more liquidity.
Every pool on Premia will be assigned allocation points at launch so users will be incentivized to provide liquidity to the pool of their choice. Premia pools allow users to maintain exposure to the assets of their choice, while earning market competitive yield in the form of Premia and their deposited token. For example, you can provide liquidity to WBTC, WETH, LINK, DAI, or any other future pool offered on Premia, and earn yield in that token plus Premia tokens.
To facilitate these rewards, each pool distributes a steady number of $PREMIA per block, pro-rata between the liquidity providers in that pool. The number of Premia per block is determined by the pool’s weighting (i.e. the number of allocation points) compared to all the other pools. This system will allow liquidity providers to earn a steady yield in Premia tokens on top of the yield provided by underwriting options in the pool(s) of their choice.
If you participated in the Premia Testnet Trading Competition, then you’ll feel right at home when navigating the Premia v2 platform. You can easily navigate between pools on the Pro Vaults page to determine which pool makes the most sense to you, as you did in the competition.
Basic Vaults 🏦
However, new on mainnet release will be our Basic Vaults, which enable users to automatically optimize their pool deposits to have the minimum impact on pool price levels. Users depositing into pools using this feature will automatically take advantage of Premia liquidity mining, no different from users depositing through the Pro Vaults interface. The Basic Vaults interface allows users to take advantage of Premia’s on-demand market pricing system to earn higher yield on average.
Based on what we saw in the competition, we think the pools will achieve a very high utilization rate as option buyers and sellers establish agreed upon (market-clearing) prices and yield based on available liquidity and demand for options. This was another feature demonstrated in the Premia Testnet Trading Competition that did very well.
We are finishing up the final audits and doing everything we can to ensure that we launch Premia v2 in a way that’s safe for our users. We can’t wait to go live on mainnet and start seeing Premia v2 in action and we hope you feel the same way!
The best way to know as soon as we launch is to join our Discord server and keep an eye on our Twitter with notifications on 🔔
Keep some liquidity handy, you’re gonna want to have it when we go live 🤝
