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To incentivize healthy liquidity pools for the bitBOMB protocol tokens, our LP farms have been seeded with bitSHARES to be distributed as rewards to LP stakers across a time period of 24 months. The total bitSHARE rewards are distributed from each farm as follows:
- bitBTC / BTC LP: 50 allocation points of the bitSHARE rewards
- bitDOT / DOT LP: 50 allocation points of the bitSHARE rewards
- bitATOM / ATOM LP: 50 allocation points of the bitSHARE rewards
- bitADA / ADA LP: 50 allocation points of the bitSHARE rewards
- bitSHARE / BTCB LP: 100 allocation points of the bitSHARE rewards
Yes. Once the max supply of bitSHARES (54k) is reached, reward emissions end. This will happen in exactly two years from when the bitSHARES farms start on July 14th 2022 1pm EST. bitSHARES will always continue to print bitBTC/bitDOT/bitADA/bitATOM in the Boardroom, though, as long as bitBTC/bitDOT/bitADA/bitATOM remains above peg.
bitSHARE reward emissions for the current LP farms are scheduled to end on July 14th 2024 once the total bitSHARE supply has been distributed.
When bitBTC/bitDOT/bitADA/bitATOM is pegged or close to being pegged, it is more akin to having exposure to a single asset (single staking) than to your traditional LP'ing experience, where you would run the risk of impermanent loss if one of the tokens went up in value and the other did not.
Yes! Let's look at an example: If BTC pumps in price, it won't "outrun" bitBTC, even if nobody is buying bitBTC at that time. The farm APRs will vary in terms of USD value, but the emissions won’t. This is something that wouldn't be possible with another 1:1 pegged asset like a stablecoin LP position, where the USD value is directly tied to the emissions. If BTC rises in USD value, bitBTC goes with it. Similarly, if BTC falls in USD value, bitBTC will be worth less in USD, but it won’t affect the peg.
The only thing that can change the price of bitBTC in terms of its BTC value (and as such, the peg) is buying and selling it.