The Urus Liquidity Mining is an essential feature of the utility of the token. To put it simply users will be rewarded with more Urus tokens by providing liquidity to the Urus Uniswap listing. However, there's a little more to the liquidity mining and the bonuses which we'll explore below.
To start with, an Urus Epoch is defined as a two week period in which a set amount of tokens will be distributed to liquidity providers. The rewards of the Epochs are as follows:
Epoch 1: 1,500 Urus Tokens Distributed
Epoch 2: 1,400 Urus Tokens Distributed
Each and every Epoch, the distributed tokens will decrease by 100 at the beginning of the two week period. This will repeat until a 600 token per epoch threshold is reached, at which point 600 tokens will be distributed until a total of 50k tokens are distributed from liquidity mining reward pool. Thus hitting the public allocation for Urus.
Providing liquidity during the first Epoch is the MOST beneificial time for any user.
The liquidity mining is structured such that 195% APY is possible for the liquidity miners IF the price of the token remains. But because of the low supply of the token, low marketcap and the low reward amounts, the APY will be much much greater in dollar value.
Liquidity providers will be able to withdraw rewards in the shape of Urus tokens at any time. However, if an LP token is withdrawn in the middle of an Epoch, a 10% fee shall be deducted from the rewards in the form of burning the LP token. This process allows Aurox to permanently lock in the liquidity on Uniswap. Although that seems significant, we have to understand anyone withdrawing liquidity in the middle of an Epoch is going against the market. Aurox has taken every step to make the platform and token as fair as possible, and anyone going against this structure should be fined.
By permanantly burning the LP token we accomplish several things:
It prevents users who want to simply pump and dump the token on real supporters of the platform.
Prevents negative feedback loops from users withdrawing liquidity when they see 1-2% negative movement in price. As every Cryptocurrency trader is aware, weak hands can cause a negative feedback loop which causes price to plumet on great projects.
Locks in liquidity permanently. The people who sacrafice the 10% fee will still help the project and other users by locking in liquidity permanently to allow for a healthy market.
The reward for participating in Epochs is distributed evenly based on contribution size to the liquidity pool. I.e. Users that provide 30% of the liquidity will receive 30% of the reward tokens for that epoch period.
This means that the most opportune time to earn more Urus tokens is at the start of the Epoch before more users provide liquidity. It's simple math. If there is only $100,000 in liquidity locked on the Urus token and you provide $10,000 in liquidity, you'll earn 10% of the rewards in Epoch 1. But as the Urus token, marketing, epochs and liquidity grows, individual liquidity providers will earn less and less.
Yield Bonus rewards
Looking further down the line, we want to continue reward users for participating in further Epochs. With that in mind, users will be generously rewarded for completing subsequent epochs. Every epoch the user successfully completes, they will be rewarded with a bonus of an additional 10% of the tokens they received during their epoch phase. The next phase, they will receive 20%, then 30%, etc. The bonus will increase by 10% every epoch until the smart contract is closed. With a maximum bonus of 100%.
Here's an example of how the Yield Bonus rewards work in practice:
A user received 200 Urus tokens in the first epoch.
Since they completed the first epoch, they will receive 10% additional tokens or 20 urus tokens.
The user completes the second epoch and receives an additional 200 tokens for that epoch.
They will then receive a 20% bonus or 40 urus tokens on top of the original rewards.
Each epoch, the bonus will increase by 10%.
Liquidity Mining & Staking Bonus Rewards
For providing liquidity to Uniswap and opting in to staking their liquidity rewards directly into the staking contract, users can be rewarded with two types of bonuses. These bonuses are as follows:
If a user chooses to automatically transfer rewards from liquidity mining yield contract to staking contract, they will receive an increase of 25% on their normal APY. For example, if the user chooses to lock in the tokens for 12 months, their normal APY will be 6% if they’re not providing any liquidity to the liquidity contract. But if they are providing liquidity to the Yield contract and choose to send all their rewards from the yield contract to the token staking contract, they will receive 7.5% APY (6% plus an additional 25% of 6 which is 1.5%).
Users that provide liquidity during Epoch 1 and opt into staking their yield reward tokens into for at least 1 year staking contract will receive an additional 50% increase on their normal APY. It's important to note however that this bonus will ONLY apply to people who provide liquidity during Epoch 1.
Liquidity providers will able to constantly add more tokens generated from their Liquidity Contracts to their Staking Contracts at anytime. Meaning, the longer you provide liquidity, the more tokens you will earn and more tokens can be added to the staking contract. This creates a huge incentive for liquidity providers to keep providing liquidity while also staking their rewards.
Users that only stake their tokens and not provide liquidity will not be able to opt into these bonus rewards! The tokens will have to be transferred directly from the liquidity contract into the staking contract for the user to take part in the bonuses. If you transfer tokens from your own wallet into a staking contract, you will not be able to earn the bonuses.