Liquidity Mining
Liquidity mining on EarnPark allows users to earn additional rewards in the form of PARK tokens for participating in platform strategies. This feature incentivizes both initial and ongoing investments, increasing user returns.
Mechanism: Users provide liquidity to platform strategies and receive returns in both the base asset and PARK tokens, effectively increasing the overall APY.
Liquidity Mining Formula:
Where: K(lm) — Liquidity mining booster, K(s) — Strategy boost, K(d) — Maximum Duration Multiplier.
Strategy Boost: The strategy boost varies depending on the investment strategy's risk profile: Low risk: 0.015, Medium risk: 0.0125, High risk: 0.0025.
Maximum Duration Multiplier: This factor is based on how long the user’s funds remain in the strategy, with higher multipliers awarded for longer durations.
The distribution is as follows:
0-1
0.5
1-2
0.55
2-3
0.6
3-4
0.65
4-5
0.75
5-6
0.9
6-9
1
9-12
1.25
12+
1.75
These variables are dynamic and can be adjusted by platform managers based on user allocation and market conditions.
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