Notice: LP rewards have been extended for an additional 21 days
We are happy to announce that we are entering phase 2 of the SynLev mainnet launch, as detailed in our project launch update. We will be turning on SynLev Exchange LP rewards. This limited program will start Nov 1 16:00 UTC and run for 21 days and reward SynLev Exchange liquidity providers a total of 500,000 SYN.
Those familiar with the SynLev know that each leveraged asset pair has a corresponding liquidity pool. These liquidity pools provide ETH to stabilize SynLev assets and earn .2% of all trading fees for that BULL/BEAR asset pair. While not required to function these ETH liquidity pools are an important part of keeping assets as close to their target leverage as possible. To bootstrap this liquidity pre-launch SYN will also be rewarded to liquidity providers in addition to ETH earned from SynLev asset trading.
Rewards will be split evenly based on the amount of ETH and length of time users provide liquidity (e.g. a user who provides 21 ETH in liquidity for one day will receive the same SYN rewards as a user who provided 1 ETH in liquidity for 21 Days). NOTE: There will be a 1 ETH and 24 hour minimum to receive rewards.
(SYN liquidity rewards will be calculated and distributed off chain at the end of the 21 day program. No claim will be necessary.)
How to Join
To provide liquidity and join the program head to synlev.com/exchange and connect to the site with your Ethereum wallet.
On the right “Liquidity Panel” enter the desired amount of ETH you would like to provide. And click “Add Liquidity”.
Then confirm the transaction. In this example we are using MetaMask.
Once the transaction is confirmed “Your Shares” and “Your Liquidity” will be updated.
Liquidity may be removed at any time, but keep in mind there is a 24 hour minimum for any liquidity. If you do not provide liquidity for at least 1 ETH for 24 consecutive hours you will not receive any SYN rewards.
Risks Associated with LP
We have worked hard to mitigate the risks associated with providing liquidity on the SynLev Exchange. The main risk liquidity providers are open to is the share price of liquidity decreasing, this can happen due to underlying asset price changes. For example ETH/USD has a +10% price change, If there are significantly more BULL tokens in circulation ETH is taken from the liquidity pool and share price decreases. However this also occurs in an equal and opposite manner, in the same circumstances if ETH/USD has a -10% price change then ETH is added to the liquidity pool and share price increases. In our testing we have found that this kind of price action only has an effect on the short term LP share price, and cancel one another out in the long term.
Additionally this effect can only occur when SynLev assets are trading, which will not go live until after this LP program launches.
This program puts us one step closer to full product launch, which we are very excited for. More news and updates coming in the following week. Follow us on twitter @SynLevDefi and join our telegram group t.me/synlev for the latest updates.