Liquidity Mining
Understanding $PAIRS LP: How Liquidity Providers Earn Rewards
What is $PAIRS LP?
$PAIRS LP lets you earn additional $PAIRS tokens by providing liquidity to the platform. Think of it as crypto’s version of earning interest at a bank—your tokens grow simply by supporting the ecosystem.
How Does $PAIRS LP Work?
When you stake your tokens (like ETH/PAIRS or USDT/PAIRS) into a liquidity pool, you receive LP tokens, representing your share in the pool. And when you stake those LP tokens, you can earn yield.
Reward Distribution
Rewards are distributed continuously, per Ethereum block.
Year 1 Example:
Total rewards: 133,333,333 $PAIRS
Daily rewards: ~331,624 $PAIRS
Per-block rewards: ~51 $PAIRS
Deflationary Reward Model
Rewards decrease over time, incentivizing early participation and helping increase the value of $PAIRS tokens:
Initial Reward Pool: 399,999,999 $PAIRS
Reduction Rate: 8.25% every 30 days
Duration: 36 reward cycles (~3 years, from 31 Jan 2025 to 31 Dec 2027)
Example of Reward Distribution Over Time
Metric
Period 1 (31 Jan 2025)
Period 36 (31 Dec 2027)
Total $PAIRS Pool
399,999,999 $PAIRS
390,302,797 $PAIRS
Rewards Distributed
9,948,725.77 $PAIRS
19,645,928 $PAIRS
Early Supporter Advantage
Early adopters receive larger rewards due to higher initial rates.
Early Example:
Month 1: If 100 people stake, they share ~10 million tokens.
Later periods: More users join, but fewer tokens are shared per person due to reduced rewards.
Reward Growth Over Time
By Period 36, rewards distributed reach approximately 19.64 million tokens, nearly double from the initial 9.95 million. However, this growth is gradual due to monthly reductions in reward rates.
Sustainable Emission Strategy
Despite regular distributions, the main reward pool shrinks very slowly:
Start: ~400 million tokens
After 3 years: ~390 million tokens remaining
This slow emission (only ~2.42% distributed in 3 years) maintains long-term value, similar to gradually sharing a large jar of cookies over years rather than consuming quickly.
Time-Based Incentives
Rewards decrease monthly to encourage early participation:
Early Participation: Higher token earnings (e.g., 1,000 tokens)
Later Participation: Reduced earnings (e.g., 100 tokens)
Joining early maximizes your benefits, though later participants still earn meaningful rewards—just at a lower rate.
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