AMPL Empire: Balancer V1 & Uniswap V3 Geyser Running Smooth

AMPL Empire: Balancer V1 & Uniswap V3 Geyser Running Smooth

By AMPL Caesar | AMPL Empire | 26 Nov 2020


Fellow Ampleforthians,

Five days ago, an announcement was made regarding the next round of Liquidity Mining incentives joining the Geyser. With the Beehive V2 coming to a close in the next fortnight, Beehive V3 was always going to be on the cards - it was launched just today. 

In addition to Beehive V3, the announcement included two more liquidity mining incentives to be added to the Geyser program. These were Pescadero V1, an incentive program that was released yesterday for liquidity providers on the SushiSwap protocol, and Old Faithful V1 - which just went live yesterday.

Old Faithful is the first-ever Geyser program for liquidity providers on the Balancer Protocol. In addition to this, Old Faithful will be the first incentive program to support liquidity in an AMPL/stablecoin liquidity pool. 

Users that deposit liquidity into the AMPL/USDC pool on Balancer will have the opportunity to earn from the trading fees generated, BAL airdrop rewards, and the regular AMPL incentive rewards.

One great thing about the AMPL/USDC pool on Balancer is that it can mitigate impermanent loss. It does this through the implementation of shifting the liquidity pool weightings, and it is unique to the AMPL smart pool on Balancer. 

As you may know, when you deposit liquidity on Uniswap, you have to split your deposit at 50/50 weighting, and this is the only option. Things are slightly different on Balancer as the weightings can be adjusted. You have the opportunity to deposit one liquidity token if you wish. The AMPL/USDC smart pool on Balancer utilizes these adjustable weightings to help liquidity providers experience a reduced impermanent loss. 

For example, if the pool starts at a 50/50 ratio, and the supply of AMPL grows by 2x - the smart pool will automatically change the balance to 33/66 to mitigate the impermanent loss. When the supply for AMPL contracts again back to the original level, the weighting ratio will shift back to 50/50.

This utilization of the weightings to reduce the impermanent loss for liquidity providers is the first of its kind and bodes exceptionally well for Balancer’s liquidity providers. You can learn more about this here.

How to participate in the Old Faithful V1 Geyser program

  1. First, you will need to deposit liquidity into the AMPL/USDC liquidity pool on Balancer. You can access it here and click “Add Liquidity.”
  2. When you are ready to add liquidity, you have two options; Multi-Asset - deposit both AMPL and USDC or Single-Asset - deposit just one of the assets (AMPL or USDC).
  3. After depositing, you will be provided with Balancer Liquidity Provision tokens.
  4. Next, head over to the new Old Faithful Geyser dashboard and deposit your liquidity. 

That’s all there is to it. You are now liquidity mining on the Old Faithful V1 Geyser and will be earning additional AMPL as a reward. Alongside this, you will still be earning from trading fees and will receive BAL airdropped rewards.

AMPL/USDC Balancer Pool Stats 

As expected, there has been quite a significant spike in the AMPL/USDC pool’s liquidity levels on Balancer. Three days ago, on November 23rd, the total liquidity in the pool was just $274.6K. Today, the total liquidity has skyrocketed to $6.5 million - representing an increase of over 2200%!

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Additionally, the volume on the liquidity pool has increased from $48.8K on November 24th to $396.3K after the launch of the Geyser rewards program - around a 700% increase in volume;

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Old Faithful V1 Geyser Stats 

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At the time of writing, you can ear approx. 127% APY via Old Faithful V1 This is expected to fluctuate over the coming days as further deposits are made into the Geyser.

The APY calculation has been adjusted for the latest rounds of Geyser programs. Now, it provides an estimate for any new deposits into the Geyser over the next 30-days. However, it does not take into account any gains made from holding the liquidity tokens - in this case, there are no gains from the USDC side because it is a stablecoin. Additionally, the APY does not take into account the earnings from BAL rewards and trading fees earned. So, in theory, your ending APY should be higher.

For this Geyser, the team has provided a total of 994,440 AMPL in rewards to be mined, and over 9,000 AMPL have already been distributed.

So far, there has been a total of $6.2 million in deposits into the Geyser. This is almost the entire reserve in Balancer’s liquidity pool, meaning that most Liquidity Providers are already incentive mining.

Another adjustment that has been made in the new round of Geyser programs is the Reward Multiplier. Previously, it took 60-days to reach a maximum multiplier of 3x. It is designed to increase your earnings the longer you keep your funds locked into the Geyser. The time period to achieve the maximum 3x multiplier has been reduced from 60-days to 30-days.

How to participate in the Beehive V3 Geyser program

If you are new to the Beehive Geyser program;

  1. First, you will need to deposit liquidity into the ETH/AMPL liquidity pool on Uniswap. You can access it here.
  2. Simply enter the amount of liquidity you would like to deposit. On Uniswap, you have to deposit it at a 50/50 ratio for ETH/AMPL.
  3. After depositing into the liquidity pool, you will receive Uniswap LP tokens to represent your current ownership of the pool’s liquidity.
  4. Next, head over to the Unisawp Beehive V3 Geyser Dashboard.
  5. Simply enter the amount of Uniswap LP tokens you would like to deposit (usually MAX) and hit “deposit.”

That’s it. You are now liquidity mining AMPL on the Beehive V3 Geyser program. 

If you are already inside Beehive V2 Geyser, you will first need to withdraw your liquidity tokens and then deposit them into Beehive V3;

  1. Head over to the Uniswap Beehive V2 Dashboard.
  2. Click the “Withdraw” tab.
  3. Remove all of your LP tokens from the Geyser and claim your AMPL generated from Beehive V2.
  4. Once the transaction is confirmed, head over to the Uniswap Beehive V3 Dashboard.
  5. Re-deposit your Uniswap LP Tokens by entering the MAX amount and hitting Deposit.

You have no successfully transferred your Uniswap LP tokens from Beehive V2 to Beehive V3 and are liquidity mining AMPL on the new Geyser.

Uniswap ETH/AMPL Pool Stats 

The ETH/AMPL Liquidity Pool on Uniswap has not seen a significant surge in liquidity. Although it has increased by a small 6%, most people will already have deposited their liquidity into this pool previously to liquidity mine Beehive V2. 

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Beehive V3 Geyser Stats 

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At the time of writing, you can ear approx. 672% APY via Beehive V3. Again, this is expected to fluctuate over the coming days as further deposits are made into the Geyser.

As mentioned above, the APY provides an estimate for any new deposits into the Geyser over the next 30-days. However, it does not consider any gains made from holding the liquidity tokens - in this case, it does not take into account any price hikes (or drops) in Ethereum.

For this Geyser, the team has provided almost 2.4 million AMPL in rewards to be mined, and over 18,700 AMPL have already been mined.

So far, a total of $5.1 million has been transferred over to Beehive V3. There is still around $9.2 million in Beehive V2 that we can expect to be transferred over in the coming week. The figure should eventually be closer to the $19 million that is sitting inside the ETH/AMPL liquidity pool on Uniswap.

Again, the time period to achieve the maximum 3x multiplier has been reduced from 60-days to 30-days.


AMPL Caesar
AMPL Caesar

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