Liquidity Mining FAQ
Last updated
Last updated
Unitus incentivizes lending activities using UTS tokens across multiple L1 and L2 networks. To earn UTS emissions, users must provide liquidity for BLP (Bond Liquidity Provisioning).
Users will be required to supply liquidity for BLP (either DF/UTS or USX/UTS), equivalent to 1% of the total value of their deposit in US dollars, to qualify for UTS rewards on their deposits and borrowings.
Mandatory BLP Threshold = 1% of the user’s deposit in US dollar
For example, if a user deposits 1,000 USDC, they must stake BLP equivalent to $10 in dollar value to be eligible for UTS emission.
Starting at 1%, this threshold will increase as more emission enters circulation.
On the BLP page, users can view the value for BLP staked and the required BLP to be eligible for UTS emission.
No, users can stake and unstake BLP on Unitus at any time.
However, please bear in mind that you will need to satisfy the 1% threshold in order to become eligible for UTS emission.
Access to UTS emission is exclusively available for whitelisted BLPs created on the following DEXes and staked on Unitus dapp.
| Blockchain | DEX | UTS/DF | UTS/USX |
|---|---|---|---|
Ethereum | Uniswap V2 | Y | Y |
Arbitrum | Uniswap V2 | Y | Y |
Optimism | Velodrome | Y | Y |
Base | Aerodrome | / | Y |
BNB Chain | PancakeSwap V2 | Y | Y |
Polygon | Quickswap | Y | Y |
Conflux | Swappi | Y | Y |
On the dashboard page, you can see the real-time deposit and borrowing rates for each asset:
Supply rate is generated by the borrowing costs paid by borrowers and disbursed to lenders in the same asset. For example, when you lend USDC, you receive USDC in return. Lenders can receive these organic rates regardless of BLP staking.
On the other hand, the boost rate represents what users should expect from emissions, provided they meet the threshold for BLP staking, and it's paid in UTS tokens.
That being said, with the maximum boost on USDC as illustrated above, a user should expect a 15.68% APY (2.72% + 12.96%) on his/her USDC deposit, translating to a yield 4.76x higher than without BLP staking.
We are implementing a decentralized BLP to enable UTS emissions and claims.
On the 'Emission' page, users can claim all their UTS rewards at anytime.
Supplying liquidity for BLP (DF/UTS, USX/UTS) will grant you eligibility to receive UTS emissions, along with a boost (multiplier) applied to your deposits and borrowings:
| BLP | Boost Weight |
|---|---|
DF/UTS | 10x |
USX/UTS | 5x |
Boost weight represents a multiplier applied to the UTS emission earned by users who provide liquidity and stake BLP with Unitus.
Simply put, for every dollar you provide in liquidity for DF/UTS, you will receive a boost of 10x or for the value of your BLP (5x for USX/UTS BLP). This means that your BLP will be considered as $10 (or $5 for USX/UTS BLP) in the calculation of UTS emission.
For example, a user deposited 100 USDT, 200 USDC, and 300 USX into Unitus and borrowed 60 USDT, 120 USDC, and 150 USX. To receive the maximum boost, this user needs to provide liquidity for either DF/UTS or USX/UTS equivalent to 10% (10x boost) or 20% (5x boost) of his highest supply or borrow amount.
| Asset | Supply in $ | Borrow in $ |
|---|---|---|
USDT | 100 | 60 |
USDC | 200 | 120 |
USX | 300 | 150 |
To achieve the maximum boost across all his supplies and borrows, this user must supply $30 equivalent of DF/UTS (with a 10x boost) or $60 equivalent of USX/UTS (with a 5x boost). If this user supplied liquidity for both DF/UTS and USX/UTS, he can receive the maximum boost when the combined BLP value for DF/UTS (multiplied by 10) and USX/UTS (multiplied by 5) exceeds $300.
Please note that this boost applies to all of his supplies and borrows.
In the early stages of Unitus, the protocol cannot provide an accurate confirmation of the required liquidity to achieve the maximum boost. However, the Unitus community is actively developing an APY calculator to help you better understand the emissions you can receive from your deposits and BLP staking. Stay tuned for updates!
Please visit the Unitus forum to view the UTS emission breakdown. Please note this shall be updated on a weekly basis to better accommodate market demand and ensure the highest liquidity mining efficiency.
On the 'Dashboard,' you can see two APYs for each asset. Taking USDC, for example, 2.72% is the natural interest rate paid by borrowers of USDC on Unitus, while 10.03% is the max yield users can receive by providing liquidity for BLP.
Please note that the maximum boost calculation considers various factors, including the total UTS allocation for a specific asset, market size, supply and borrowing volumes, and more. As a result, your actual liquidity mining APY may be lower than 19.08%.
On the ‘Dashboard’, you can view all your deposits and borrows with the actual APY, which includes both the base APY and the UTS APY. For example, this user receives 11.81% (2.71% base rate, paid in USDT, plus 9.1% boost rate, paid in UTS) on their USDT deposit and 7% (12.08% boost reward, paid in UTS, minus 5.08% borrowing cost, paid in USX) on his/her borrowings.
