Liquidity Incentive Program (LiP): Now live

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Dear Community:

The Liquidity Incentive Program (LIP), proposed and voted on by JetDAO is going live. The LIP will commence calculating and distributing rewards to both liquidity providers and borrowers using Jet Fixed on Thursday 07/20. This program represents a significant milestone for both JetDAO and Jet Protocol, as well as its users to achieve long-term alignment in protocol health and usage with JetDAO treasury initiatives.

Below is a summary of how the program will commence. If you wish to read the complete proposal, please follow this link.

Timeline

  • The Liquidity Incentive Program will run for a total of 4 years, with an additional 9 days added to the program to accommodate rewards distribution. The maximum time considered for rewards distribution is set at 2,116,800 minutes (or approximately 4 years and 9 days).

Rewards Distribution

  • Rewards will be distributed in epochs that span 30 days, equivalent to 43,200 minutes. The maximum number of epochs planned for the program is set at 49.

Retroactive Governance Rewards

  • A one-time retroactive airdrop will be made to users who took part in Asset Onboarding proposals prior to April 30, 2023. There were 19 such proposals.

  • To see all the proposals: Jet | Governance

Available Funds

  • 137,700,946 JET tokens from the DAO treasury distributed as follow:

  • 67,050,473 JET tokens to providers acting as lenders

  • 67,050,473 JET tokens to providers acting as borrowers

  • 3,600,000 JET tokens to governance participants

Logic

  • To participate in the program, users must take action as lenders or borrowers in Jet Fixed-term Markets. For a user to qualify for rewards, their user liquidity score must exceed 0.25% of the total liquidity score for a given epoch.

Links:

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