Automated Earnings
A New Way to DeFi: Say Hello to 1-Click Automated Earnings
Last updated
A New Way to DeFi: Say Hello to 1-Click Automated Earnings
Last updated
We’re excited to announce a major breakthrough in simplifying DeFi: Automated Earnings powered by our offchain rewarder! This means that liquidity providers no longer have to stake their LP into the farm, and instead will earn rewards immediately upon the creation of their positions!
In other words; Simpler DeFi | Greater Efficiency | Better Experience
Let’s take a closer look at the old vs new process:
With this launch, we have removed the need for you to stake your LP into the farm to start earning rewards. No more wasting time, gas fees or even the risk of you forgetting to stake your LP. Stake, and earn.
As a concentrated liquidity (V3) DEX, we understand that creating a liquidity position (LP) is a complex and manual affair; you’d have to manually rebalance your positions if it went out-of-range. That’s why we’ve integrated with key Active Liquidity Managers (ALMs) to help make your life much easier. ALM’s manage your positions by rebalancing and auto-compounding, ensuring that you constantly stay in-range and your positions are optimized. When you’re always in-range, you’re always earning.
The technology that makes this all possible is our offchain rewarder, which we’ve built from ground up. Our rewarder automatically read every user’s on-chain LP position and rewards liquidity providers in an efficient way
It is a reward method that calculates all the rewards per position every five minutes off the chain, then distributes the reward on a one hour cadence to users.
Off-Chain removes a lot of the limitations of the regular incentivization process, which is highlighted below;
More importantly, it reduces the need for us to manage rewards on other ALMs, and instead we’re able to manage the rewards directly on our end. This fosters greater scalability; imagine having to allocate rewards to 5 different ALMs for the incentivization of our pools. It’s simply a nightmare.
Not only does it simplify our backend processes, it facilitates greater composability for our LPs.
In order to earn on a pool that is emitting rewards, all you have to do is create an LP position. If you have an existing position, don’t worry you’ll still earn rewards. You don’t have to do anything!
Off-Chain rewarder posses the following characteristics:
It calculate rewards every 5 minutes
It distribute rewards every 1 hour
User can claim distributed rewards anytime
If you are an existing StellaSwap user, you will start to earn rewards from Off-Chain without having to do anything. Even if you have your LP staked in a farm you will still earn your rewards.
There will be changes to the UI of StellaSwap’s “pool page” and “my dashboard” that will ensure new users do not have to stake into farms. However, for existing users they will still be able to unstake their LP from a farm.
