Introducing “MMC: Season 2” Real-Time Rewards and Balanced Pools
How would you like to accrue and claim real-time SVY rewards for providing liquidity on Trader Joe?
Savvy is launching a new LP rewards program called “MMC: Season 2” from August 26th — September 9th for the 3 svToken stableswap pools and SVY-ETH pool on Arbitrum:
This rewards program uses Savvy Subgraphs, the first Subgraphs ever created for Trader Joe’s Liquidity Book, to allow participants to claim their rewards timely, instead of waiting for the conclusion of a 2 week epoch. Furthermore, the “MMC — Season 2” incentivizes tight svToken-base asset price correlation.
*In addition*, the SVY-ETH pool will continue to be incentivized with 5,000 JOE in Trader Joe’s Liquidity Book Reward Program, where the Top 20 LPs by earned fees will earn JOE rewards.
MMC Season 2
MMC Season 2 has the following characteristics:
- Everyone who participates gets rewarded
- No minimums
- Rewards are accrued in real-time and are distributed in frequent time intervals
- For stableswap pools, rewards are distributed around the center 1:1 bin with a bin radius of 20:
svUSD target bin: 8333333
svETH target bin: 8388608
svBTC target bin: 8342545 - For the SVY-ETH pool, rewards are distributed around the active bin.
Rewards
Details
There are several improvements to our new rewards program:
Tight Bin Distribution (svTokens)
- To incentivize a tight svToken-base asset price correlation for the stableswap pool, MMC Season 2 only considers liquidity in bins that are within a 1% radius, or 20 bins, from the target 1:1 center bin.
Balanced Pools
- Both respective token liquidities earn emissions separately, meaning that two LP ratios are tracked per user.
- A less deep base token liquidity would hence earn more rewards than the deeper svToken side assuming the LPer provides equal liquidity to both sides.
- This time around our SVY token is liquid, so rewards can be distributed more timely.
How to LP in MMC: Season 2
- Go to the desired pool:
2. LP within a max range 20 bins on either side i.e., 0.99–1.01 under the “By Radius” tab for MMC: Season 2 rewards. Any liquidity shape is acceptable within the range.
Background
Savvy participated in the **Liquidity Book Reward Program during the last epoch (Aug 12–25) for our stable swap pools.
Unfortunately, our liquidity goals have not been met. The Trader Joe model prioritizes swap fees over depth of liquidity — understandably so as the DEX’s goal is higher volume.
However, Savvy’s goal is to create deep liquidity, especially around the 1:1 center for the stable swap pairs. Here are the liquidity depths as of Friday, August 25th:
During the Savvy Market Making Campaign, the engineering team at Savvy DeFi created custom Liquidity Book subgraphs to snapshot every user’s liquidity balances across all bins per interval over time.
Each user’s liquidity ratio was determined by summing up base tokens & the paired tokens, valued equally at 1 unit each, as a ratio against the total liquidity in the pool. This ratio was checked every 15 minutes and multiplied by the emissions rate for the 15-minute interval.
This approach led to an ATH of $1.6M of total liquidity across our three stable swap pools and finished at about $1M after the eight weeks, achieved without a single liquid SVY token being distributed throughout the campaign.
MMC Season 2 Rollout
The MMC rewards will start accruing on August 26, 2023 at 00:00 UTC. A page with real-time rewards and claims will be available in the coming days.
