Rewards

TL;DR: Earning rewards for providing liquidity is PvP, both in terms of XP and LP size. Players will always want to own more XP and provide more liquidity vs the rest.

Introduction

Users that provide liquidity in one of our whitelisted Liquidity Pools are rewarded with Kerosene. Kerosene rewards per Liquidity Provider are based on two different metrics which add up to create an ''effective'' LP size. The different metrics are:

• XP multiplier

• LP multiplier

Each user obtains XP by depositing Kerosene into their note. The XP multiplier is four times as important compared to the LP multiplier. Hence, users that deposit Kerosene into their Note to accumulate XP have an advantage over Liquidity Providers without XP. The effective size of each note is obtained by the product of both multipliers(XP and LP). For maximum Kerosene rewards a Liquidity Provider should:

• Continuously accumulate XP via their deposited Kerosene

• Provide an above average dollar amount of liquidity. (lp stats and calculator coming soon)