CaviarNine Liquidity Incentive Program

Boost Your DeFi Experience

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CaviarNine

3 min readJan 18, 2024

We’re excited to unveil The CaviarNine Liquidity Incentive Program.
As the leading project on Radix, we’re committed to empowering our community and reshaping the future of DeFi.

What is the Liquidity Incentive Program?

This initiative is designed to enhance the liquidity of our DEX platform and build TVL on Radix by incentivising you to join as liquidity providers (LPs) in our selected pools. This program isn’t just beneficial for LPs; it’s a way to improve trading for everyone in the Radix community.

This program replaces the previously announced CAVIAR airdrop to tie in more closely with the RDX Works liquidity incentives timing.

How It Works: Simple, Engaging, Rewarding

Participation is straightforward and lucrative. Just contribute tokens to any of our incentive pools and become a LP. You’ll earn CAVIAR rewards, based on the amount, duration and activity of your liquidity. Active liquidity is defined as tokens that are are close to the current market price, contributing to potential swapping power.

Multiple Rewards

Participants in the Liquidity Incentive Program can look forward to:

Airdrop Rewards: You will receive tokens as a bonus for contributing liquidity to the selected pools. 500,000 CAVIAR will be allocated every week to each of the selected incentive pools and will be airdropped to LPs in the coming months.
Fee Income: As LPs, you will still be entitled to the usual share of the trading fees generated within the liquidity pools.

Which Pools are included?

The first pool will be the CAVIAR/XRD pool with its allocation of 500,000 CAVIAR rewards per week.

Additional pools will be announced in the coming weeks.

Program Timeline

Launch Date: The program begins on Friday the 26th of January 2024, with the first pool.
Duration: Anticipated to run for at least 6 months, subject to extension or modification.

Reward Mechanics: Fair and Transparent

We’re adopting a snapshot-based approach for reward calculations. High-Frequency snapshots of each user’s active liquidity balance will ensure fair and appropriate airdrops.

Airdrop Schedule: Monthly Rolling

On a monthly, unscheduled basis, we will airdrop the reward tokens to the accounts proportional to their active liquidity in a given pool for the previous month.

Terms and Insights

No Limits: There are no minimum or maximum limits. Adding more liquidity, particularly near current market prices, increases your potential for a greater share of the rewards.
Multiple Pools: You have the freedom to add liquidity to various pools at the same time. We calculate rewards for each pool separately, giving you more chances to receive rewards.

Active Liquidity: Why It’s Key in Our Program

Concentrated Shape Liquidity: CaviarNine’s approach lets you place liquidity smartly — increasing capital efficiency.
Focus on Useful Liquidity: We value liquidity that’s close to market prices. It contributes more to trades, unlike large amounts placed far from current prices.
Rewarding Risk and Relevance: Our rewards are for liquidity that’s actively involved in trading, acknowledging the risks LPs take, especially with impermanent loss.
Beyond Basic DEXs: Unlike standard DEXs that treat all liquidity the same, we prioritise and reward liquidity that really impacts trading.

In short, it’s about strategically placed liquidity that enhances trading, not just the quantity of liquidity provided.

Disclaimer

The rewards, timelines and airdrop schedule are subject to change or could be terminated based on the overall participation and performance of the program.