Yield farming presents a productive solution for the distribution of new tokens to the right investors. The algorithmic distribution of tokens to users who have placed their tokens in the liquidity pool provides better efficiency. Subsequently, the newly minted tokens are distributed according to the share of each user in the liquidity pool. The pool percentage that a depositor makes up determines the depositor’s returns.
To illustrate, if their deposit equals one per cent of the pool’s depth, they will receive one per cent of the pool’s total fees & newly minted tokens. Initial pool will be created via the $DGOLD’s liquidity mining allocation as described below.
Yield farming rewards will be allocated from the Liquidity Mining allocation of the $DGOLD. And the Liquidity Mining category is one of the major chunk of reserved tokens, 25% of the total amount of tokens, which is 750,000,00 tokens, allocated for the sustainable rewarding for liquidity providers.
$DGOLD ecosystem allocations will be introduced into circulation through three phases of a liquidity mining program.
- The first phase will be live in June 2022, rewarding users who provided a $DGOLD/USDC pair on partnered DEXs with $DGOLD tokens
- During the second phase, Degen Islands will introduce a yield multiplier, based on the amount of ISLAND NFT ownership a user has and the size of the ISLAND
- Within the last phase, previous rewards will roll over into phase three, with an additional surplus tokens (1.5 million $DGOLD tokens added to the rewards pool