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Community Rewards
Earn "Real Yield" for Providing Liquidity
CryptoLink offers an incentive program for those who choose to stake and lock LP tokens on the platform. The rewards system is structured as follows:
- 1.PAPER-Native* LP Rewards: 10% of all bridging transaction fees, plus additional variable rewards from the treasury.
- 2.INK-Native* LP Rewards: A baseline reward of 5% of all bridging fees, plus additional variable rewards from the treasury.
These rewards are distributed to liquidity providers who stake their LP tokens, with increased rewards for longer locking periods. Rewards are given in the wrapped native gas coin (WETH) of the respective blockchain (e.g., WMATIC for Polygon, WFTM for Fantom).
To earn rewards, liquidity providers need to stake and lock their PAPER-Native LP and INK-Native LP tokens. The rewards are distributed based on the length of the lock period as follows:
- 1 week lock period: 10% of total rewards
- 4 weeks lock period: 50% of total rewards
- 12 weeks lock period: 70% of total rewards
- 24 weeks lock period: 100% of total rewards
Rewards are distributed every 7 days in the form of the wrapped native blockchain token. To start receiving rewards, LP tokens need to be staked for one full period. Any rewards that are not fully earned are rolled over into the next earning period.
Chains with higher transaction volumes will yield higher token distributions. For instance, if Binance and Polygon contribute 55% of the total volume on CryptoLink's bridge, then liquidity providers who have staked PAPER-BNB LP and PAPER-MATIC LP tokens will receive 10% of the 55% total volume.
*"Native" refers to the coin that is used to pay gas on a certain blockchain. It is a simplification of the term, "Blockchain Native Gas Coin". For example, the native gas coin on Ethereum is ETH. On Polygon, the native gas coin is MATIC.
NOTE: Rewards are distributed to participants who stake liquidity to enable the utility of tokens used in cross-chain messaging. All staking rewards are subject to change at any time. Rewards for staking are not guaranteed and should not be considered a security or a form of investment.
Last modified 5mo ago