Update: Pillar Foundation matches PLR token outflow 1:1
First of all, we’d like to express our gratitude to all the pioneering Liquidity Providers. Your support means the world to us, and it’s been amazing to see the enthusiasm of PLR token holders participating in the program.
After the overwhelming success over the last 4 days, we made some preliminary calculations. According to those calculations, the 250 000 PLR we initially made available to eliminate “impermanent loss” will only cover one-third of the net outflow of PLR tokens for liquidity providers.
To completely eliminate the “impermanent loss” risk for early participants, we have therefore made the decision to match the net outflow of PLR tokens of the first week of the program with a 1:1 match. This 1:1 match campaign will end on Thursday, July 16 at 23:59 BST.
Simultaneously, we’d like to propose that the Pillar Community matches the net outflow for the next week of our liquidity mining program. We believe this will encourage more users to participate in the program.
Of course, that decision is up to the community. If you’d like to cast your vote, navigate to the pinned message in the #governance channel in our Discord. Voting will be concluded on Thursday, July 16 at 12:00 PM BST.
Yesterday, we announced the launch of our liquidity mining program. In order to incentivize participation, we made 250 000 PLR tokens available as a reward for token holders providing liquidity in the Uniswap V2 exchange. Within 24 hours, we reached $100k total liquidity – a 692 % increase.
Our liquidity mining program is one of the major initiatives we are spearheading to decentralize governance of the Pillar Smart Wallet, making it the first-ever truly community-owned wallet, so we’re incredibly excited to see our token holders participating in this joint mission.
Pillar has always been a community-driven product, and we recently introduced a framework that will make PLR token holders the main decision-makers through a community DAO. This enables token holders to dictate new wallet integrations, updates, and modifications. At the same time, it allows them to directly benefit from wallet adoption: All fees earned by the Pillar Wallet will be distributed to and managed by the community DAO.
This next step into liquidity mining continues to foster the alignment between token holders and wallet stakeholders, which is crucial for the newly introduced governance structure to succeed. Simultaneously, it allows us to reward and give a voice to token holders who actively contribute to advancing the Pillar Wallet.
Less risk, more rewards
At the end of the 30-day program, Pillar will reward liquidity providers with PLR tokens based on the decrease of their PLR balance in the liquidity pool. If the total balance decrease in the pool is less than 250,000 tokens, Pillar will reward one PLR token for each token “lost”. If the total pool balance decrease is greater than 250,000, then the reward tokens will be allocated proportionally.
Liquidity providers can enter the pool at any time, but must be active at the end of the 30-day period to qualify for the extra PLR rewards. Participants must commit an equal value of PLR and ETH into the pool, and this can be withdrawn at any time after the end of the incentive period.
Every Uniswap Pool has its own swap fee, which is distributed equally to the pool’s liquidity providers. The 250 000 PLR tokens are an extra incentive that also eliminates the “impermanent loss” risk usually associated with liquidity pools.
So when participants provide liquidity in the PLR/ETH pool, they are not only earning a percentage of Uniswap’s trading fees, but they are also earning PLR tokens that give them additional governance weight.
The more liquidity you provide, and the longer you are in the pool, the higher your rewards.
For a more detailed explanation of liquidity mining and our reward structure, read this article on our blog.
Lastly, make sure to join our Discord to follow the discussion!