Posted Monday, Jul 26, 2021
Hello, #PartySquad. This article delves deeper into our Piñata Pairs and Jacuzzi, explaining how they work.
First off, our Piñata pairs are equal to the "Farms" section in most AMMs, where people that inject liquidity into the platform can generate rewards. Our reward token is named $PARTY, a coin that will gain utility through different applications.
We already released our pairs in our official announcement post, but we never publicly disclosed the incentives for each pool. So, in the image below, we provide all the information left.
Our farms will reward 16,450 $PARTYs daily to our users, distributed among stakeholders in our liquidity pools depending on the locked amount: the more you stake, the more rewards you'll get. However, the system's configuration will halve the coins every four years, meaning it will cut the total amount given in half.
We are happy to announce our partnership with AVME, the first desktop wallet in the Avalanche ecosystem. To know more about their project and token, please check their official website: https://avme.io/
The jacuzzi is our single-sided pool, where people can stake their $PARTY tokens to get even more coins over time.
So, what's the trick behind it? Like the Nests on PenguinFinance, the Jacuzzi will let users inject $PARTYs to get xPARTYs. These xPARTY tokens are our jacuzzi LP Tokens that are projected to increase in value against $PARTY over time, bringing more rewards to our users by the moment they decide to get out of the pool.
As we mentioned in our "Tokenomics V2" article, 30% of our Liquidity Mining coins will be used as incentives for the Jacuzzi. That means our team will daily inject more $PARTY tokens into the pool to increase the ratio between $PARTY and xPARTY.
To make it easier to understand: every moment we inject our daily incentives into the Jacuzzi, more $PARTY tokens will be distributed among our Jacuzzi stakeholders. However, we will develop different applications in the future that will bring more $PARTY tokens into the Jacuzzi, increasing the ratio between $PARTY and xPARTY. We will provide more information about these applications in the future.
How many tokes will our team inject per day?
Our team will provide 32,900 $PARTYs per day for our Jacuzzi, which will halve every six months. As we explained before, we will take these tokens from the Liquidity Mining allocation, totalizing 20,625,000 $PARTY tokens.
What's the paper hands penalty?
Our Jacuzzi will also have the famous "Paper Hands Penalty" (PHP) introduced by PenguinFinance, which will sanction the users that stake off early. This system will incentivize users to stake longer, steadily increasing and maintaining the ratio between $PARTY and xPARTY.
However, our system has different rules. In our case, the penalty will decrease by around ~1.5% every month until it reaches 2%, for the next twelve months after our platform release. Here is a calendar with the timeline of each percentage drop. It is also important to mention that the penalty fees will get burned, so the total supply decreases every time a user leaves the pool.
I hope this article cleared up all the questions about Piñata Pairs and Jacuzzi. We can't wait for our platform release, so you can enjoy everything our application has to offer.
PartySwap is a Decentralized Exchange (DEX) launched in Avalanche where you can do permissionless swaps between currencies, earn interests in farms and liquidity pools in one interoperable, highly scalable ecosystem.
If you have inquiries about our platform, please don't feel afraid to ask! [email protected]