Sirwin
Sirwin

CAIT Liquidity Provider Rewards on alcor.exchange Announcement | April 24, 2021 (WAXCAIT & TLMCAIT)


CAIT is proud to announce that the WAXCAIT and TLMCAIT liquidity pairs on Alcor.exchange will be the pairings for the first beta test for Liquidity Provider Rewards on WAX. This event will start on April 25, 2021 at 08:00 CST. 

Summary

  • Users MUST sign in to wax.bloks.io and enter their LP holder address in the dropsignup action on the caitairdrops contract. This action only signs you up to be eligible to receive rewards. The user controls their own LP tokens
  • Users who provide the liquidity to WAXCAIT and/or TLMCAIT will earn CAIT token rewards via the caitairdrops contract that goes live on April 25, 2021 at 08:00 CST. https://wax.bloks.io/account/caitairdrops?loadContract=true&tab=Actions&account=caitairdrops&scope=caitairdrops&limit=100&action=dropsignup
  • 2500 CAIT tokens, in total, will be rewarded to WAXCAIT and/or TLMCAIT Alcorammswap LPs.
  • 60% (1500 CAIT) of the Reward Pool  will be reserved for WAXCAIT Liquidity Providers
  • 40% (1000 CAIT) of the Reward Pool will be reserved for TLMCAIT Liquidity Providers
  • This initial beta test will last for 7 days, ending on May 2, 2021 at 08:00 CST.
  • All Liquidity Providers will share the rewards proportionally. 

How To Be Eligible?

  • To Qualify you must hold any amount of WAXCAIT or TLMCAIT on Alcor.exchange Swap.
  • To see if you currently hold either of these tokens search your wallet address on wax.bloks.io and check under Chain Data>Tokens.

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  • If you already hold either of the required tokens all you need to do is go to the caitairdrops contract, select dropsignup under actions.
  • You will need to manually enter your wallet address that has CAIT LP.
  • Once you have submitted the transaction you should see a confirmation page. 

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  • If you do, you are signed up for the Beta LP Rewards. 
  • If you do not see a success message please email [email protected] with any questions or concerns. 

 

What if you don't have WAXCAIT or TLMCAIT?

 

Swap for TLM, WAX or CAIT

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Or you can reverse either token to swap for WAX!

 

Now We Can Add Liquidity.

WAXCAIT https://wax.alcor.exchange/swap?output=CAIT-tokencrafter&input=WAX-eosio.token
TLMCAIT https://wax.alcor.exchange/swap?output=CAIT-tokencrafter&input=TLM-alien.worlds

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In both examples you will see what it looks like when a wallet does not have any Alcor.exchange liquidity. In order to provide liquidity you need an equal amount of both tokens in the pair. Meaning if you want to provide $10 worth of LP. You need $5 of one token and $5 of the other. 

Slippage and Purpose to being a CAIT Liquidity Provider

OH No! Why do I now have more value in one token than the other, even though I just swapped 10 wax for each token? Well, there is something called slippage, which is why we need people to provide LP. Slippage is the difference in the two pools between the true prices of the tokens. So in this situation there is more WAXTLM than WAXCAIT, meaning that the person trading the same amount of WAX for each token gets less because the pool itself has less room to make the decision on the price. The larger the pool, the closer to the “real price” the swap actually gives to the person making the trade. Alcor and most Uniswap AMM exchanges have a LP fee of 0.3%. In this situation 0.3% is given to LPs who hold a specified paring. In this case WAXCAIT and TLMCAIT. So by providing funds, you automatically are entitled to your proportional share of that 0.3% volume take. 

Alright so you know that 0.3% comes off the top to LPs but where does slippage come in? Slippage is the excess difference that the buyer of the token with low liquidity pays to the seller. 

On smaller exchanges this will be noticeable in $0.98 USDC or $1.05 DAI. The liquidity for those tokens are too low and so the difference in arbitrage gains for a savvy botter is easier than it should be. More liquidity means $1.00 USDC and DAI but it also means that if you exchange say 10 wax for TLM you should be relatively certain that that same 10 WAX buys you the equivalent in CAIT. And that you could swap WAX for CAIT for TLM and back to WAX and end up with very close to 10 WAX minus the 0.3% LP cut. 

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That's a 1.62% LOSS for just making those trades! That’s significantly more than 0.3% This is why providing liquidity matters to the average casual trader. If you're going to hold the tokens, might as well at least make that 0.3% and take advantage of the gaps! Now with our LP Rewards You get that 0.3% and more! 

2500 CAIT tokens will be given out over a period of 7 days with LPs earning a proportional rate of the rewards compared to their held LP tokens. These tokens are accumulated at 10 minute intervals, but rewards will always be up to 24 hours behind because of how the contract functions and calls the payout. Meaning if you are there from the beginning to the end you’ll get full rewards based on your straight up token holdings compared to other holders. If you are not holding the entire 7 day period, you lose a percentage of your claim by the amount of time you are not holding. 

Increases in LP take effect 10 minutes after they are made. If you hold 100 WAXCAIT for 3 days and then swap for 100 more WAXCAIT, you would receive the proportional holdings for the first 3 days and then the last 4 days after the addition of liquidity. It is always relative to the total pool at that current moment determining how much you effectively gain every 10 minutes.

Okay, so you now understand why providing LP matters and why we are incentivizing it! It makes the field even for more people and makes trading more equitable for everyone involved not just the whales. 

 

What should it look like on Alcor once you have provided Liquidity?

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So on the CAIT Atomic Hub Sales Account a2dr2.wam, we have added 40 WAX of total LP in this above picture. 7.41 TLM (10 WAX) and 200 CAIT & 9.89 WAX and 199.60 CAIT.

Slippage

You can tell right here this is an example of slippage because we traded the same amount of wax in both transactions. But we ended with less overall because the WAXTLM pairing is closer to that dead even 0.3% than either of the CAIT pairings currently! 

So get out there and add LP. We will be doing a Free promo drop on the LP Rewards Program alongside a paid Animated CAIT logo to celebrate the occasion and to receive CAIT as a reward for buying our NFTs. Buyers currently receive 12 CAIT per 1 WAX in the price of a paid drop. This upcoming drop will be 10 WAX, so each purchased NFT buys 120 CAIT. This is one of our methods of minting new tokens. 

Other Information:

  • There are currently 25 WAXCAIT holders, holding a total of 11,893.342509 WAXCAIT LP tokens. https://wax.bloks.io/tokens/WAXCAIT-wax-alcorammswap
  • There are currently 8 TLMCAIT holders, holding a total of 1,083.3428 TLMCAIT LP tokens. https://wax.bloks.io/tokens/TLMCAIT-wax-alcorammswap
  • You can use these numbers to estimate your percentage share of the pool. Remember, time in the pool matters as much as amount in the pool.
  • Holding for example 100 WAXCAIT for 7 days would earn you more than holding 500 WAXCAIT for 1 day.
  • Rewards must be more than 0.0001 CAIT as that is the smallest denominator the token can be broken into. 
  • If this rewards program is successful we intend to offer multiple staking options for CAIT holders to earn rewards as passive income. 

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Collective Artistic Investment Token $CAIT
Collective Artistic Investment Token $CAIT

CAIT on WAX We're a community giving back to another community in a materially significant way. Micah’s Personal Wax Address : kj2ay.wam CAIT Staking/Market Wallet : a2dr2.wam Cait Token Reserve: caittokenres CAIT Wax Reserve: caittokenwax CAIT Airdrops Acct: caitairdrops

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