Coil combines what you see in the real world into crypto, while adopting ideas of HEX and AMPL, which are two of the most successful projects on Uniswap and both hit over 1 billion dollars in market cap.
What makes this idea of the Spring so powerful, is that it allows liquidity to become more predictable and chartable. People are able to map out when large amounts of liquidity enter or leave the pool and thus make much more logical decisions. This predictability in the liquidity will lead to less volatility, while also solving some of the manipulation issues because it designs a system that rewards good actors of the network and penalizes bad actors.
Ampleforth was the first to pioneer the idea of elastic supply. The team believe the idea of elastic supply is revolutionary and one of the biggest developments in the crypto space since Bitcoin and Ethereum. Full credit goes to AMPL for bringing the idea of elastic supply to the mainstream, however they saw some potential major flaws, so the team created Coil to addresses these issues and to make a better, more decentralized, and more fair elastic supply cryptocurrency.
This is why they designed the Coil Spring like they did. Spring fixes this by adding a HEX like CD(certificate of deposit) system on top of AMPL’s geyser. It makes liquidity more predictable where people can adjust and chart it while also making it much harder to manipulate. Just like in the real world, if you opt into a Certificate of Deposit, the longer you lock your funds up the larger the rewards. And just like in the real world if you want to pull those funds out early before the time is expired, you will pay a penalty. What this does, is not only incentivize and pay users to provide liquidity is incentivizes them to keep it there, and do what they say. Users can elect to provide liquidity for 1 day, 5 days, 30 days, or even 90 days. They can choose any amount they want or even break it into multiple periods if they want. The longer they do the more they are rewarded. If however a users chooses 90 days, and pulls out that liquidity after 10 days, they will not only receive no rewards they will also pay a large penalty from their principle.
The Spring is designed to reward good network actors while penalizing the bad. This will help fix manipulation and volatility in Ampleforth, while also allowing more data and this liquidity to become more predictable giving users more information to adjust.
The SpringApp incentivizes liquidity on Uniswap by paying out rewards from the Liquidity fund. They have budgeted 1/5 of their token supply to show that they are committed to continue to grow and incentivize liquidity for many years to come. The team believes a large pool of liquidity is essential in the success of any project, and not only will they be incentivizing liquidity in their pools, also have a unique twist to Spring, which will encourage that liquidity to REMAIN in the pool and become more predictable. This design adds a Certificate of Deposit system on top, which will make liquidity more predictable, more stable, and much harder to manipulate.
Spring 1.0
Details:
- Start Date: September 9, 2020
- Reward Pool: 1% of total COIL supply
- Distribution Schedule: 90 days
- Stake for 1 month for 2x rewards
- Stake for 2 months for 3x rewards
Instructions
- Connect your Web3 wallet (ie. MetaMask)to the Uniswap liquidity pool here
- Deposit ETH and COIL into the Uniswap V2 Pool
- Select Supply
- Receive UETHCOIL-V2tokens in return*
- Navigate to the Coil Spring site here
- Choose the Amount and Time Lock Period (days)
- Deposit V2 tokens (Users can set up multiple contracts)**
Check your Spring stats
APY = Annual Percentage Yield
Ready Contracts = Your # of Liquidity Locked Contracts
Accrued Rewards = Amount of Rewards Earned
To Unstake and Withdraw
- Enter the contract address that you would like to cancel
- Select Withdraw
Overview
Users will be able to opt into the Coil Spring by providing liquidity into the Uniswap pool. In return for providing the ETH and COIL liquidity they will receive a V2 token which they can then stake and put into the Spring.
Users are able to choose how long they would like to provide liquidity (1–90 days). The longer you provide liquidity, the larger the rewards. You will receive a multiplier and start at 1x and add to this each day. After 30 days it goes up to 2x, after 60 days it raises to 3x, which is the max multiplier. If users elect to provide liquidity for 30 days, but stay in the pool longer, you do not accrue higher rewards.
The time lock duration chosen is the maximum amount rewards that a user can receive. So staking longer from the start gives you the higher multiplier as you cannot get a 3x if you stake under 60 days. Once your time is served you can withdraw your full balance (also subject to rebases + the rewards).
The Spring adds a unique twist to this liquidity not seen in crypto. If you elect for 90 days, but decide to pull your liquidity after 10 days, you will pay a large penalty that can eat into your principle. This penalty is then distributed to all of the good actors in the Spring that provide liquidity for the amount of time they agreed too, increasing their rewards.
