> For the complete documentation index, see [llms.txt](https://docs.earnpark.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.earnpark.com/token-whitepaper/park-token-utility/liquidity-mining.md).

# 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:

$$
K(lm)=K(s)∗K(z)∗K(d)
$$

Where: \
K(lm) — Liquidity mining booster, \
K(s) —  Strategy boost, \
K(z) — Liquidity‑Zone Coefficient,\
K(d) — Maximum Duration Multiplier.

**Strategy Boost:** Reflects the strategy’s risk level.&#x20;

Initially, all tiers share a placeholder coefficient of 1.00 for live testing; values will be calibrated later using user engagement and performance data.

Low risk: 0.01, \
Medium risk: 0.01, \
High risk: 0.01.

**Liquidity-Zone Coefficient:** Sets the emission multiplier by mining phase—zones advance when platform TVL or total tokens mined hits each threshold. K(z) declines from Zone 1 to Zone 6 to slow token emissions over time and reward early liquidity provision.&#x20;

| Zone   | Extra APY in PARK | TVL trigger, $ m | Tokens distributed, m |
| ------ | ----------------- | ---------------- | --------------------- |
| Zone 1 | 1.14%             |  < 20            |  10                   |
| Zone 2 | 6.00 %            |  20 – 50         |  15                   |
| Zone 3 | 4.80 %            |  50 – 100        |  25                   |
| Zone 4 | 4.60 %            |  100 – 200       |  30                   |
| Zone 5 | 2.40 %            |  200 – 500       |  35                   |
| Zone 6 | 1.20 %            |  > 500           |  >35                  |

The active zone is whichever trigger—TVL limit or mined-token cap—occurs first.

**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. <br>

The distribution is as follows:&#x20;

| Duration (months) | Multiplier |
| ----------------- | ---------- |
| 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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