🟢Liquidity pools

This feature is LIVE since v0.3

Current reward schedule

250,000 BST / month

The third product to be launched are liquidity pools. These will be deployed on other DeFi protocols (e.g Uniswap, Balancer, Sushiswap, 1inch) based on governance decisions made by the community.

As with the Governance pool where staking BST is possible, Liquidity pools are designed for accessibility, connecting the Oceanpoint UI with liquidity pools deployed on e.g. Uniswap to provide an easy-to-use experience. Once introduced, anyone will be able to provide liquidity to the protocol and passively increase their holdings of BST.

Pool mechanics

Although the transaction of assets and the subsequent staking of Liquidity Provider tokens or LP tokens to earn BST functions seamlessly for an end user, we explain the process in 3 steps for ease of understanding.

Liquidity provider tokens or LP tokens are tokens issued to liquidity providers on a decentralized exchange (DEX) that run on an automated market maker (AMM) protocol. Uniswap, Sushiswap and PancakeSwap are some examples of popular DEXs that distribute LP tokens to their liquidity providers. With the introduction of liquidity pools, Oceanpoint will enable users to directly interact with selected AMM protocols and stake their LP tokens to earn rewards.

Step 1: Deposit liquidity pool assets

Connect your wallet (e.g. MetaMask) holding both assets of the Liquidity pool e.g. BST:ETH. Access the interface provided by the liquidity protocol e.g. Uniswap through the "Add liquidity" button provided under the Info section of the Liquidity pool row you would like to participate in to move your assets to the underlying Liquidity pool.

Step 2: Receive Liquidity Provider (LP) tokens representing the pool assets

When you initiate a deposit of assets to a liquidity pool on a third party exchange like Uniswap, the protocol will issue LP tokens in return to mark your position in the pool. Instead of simply holding them in your wallet, Oceanpoint enables users to stake them to earn extra rewards in BST.

Step 3: Stake your LP tokens to earn BST

Oceanpoint will deposit your received LP tokens into staking contract designed for LP staking. In return the user receives a "staked" version of the same LP token. As the Liquidity pool accrues more BST (liquidity mining, rewards, asset revenues), that staked LP token will grant more of the underlying asset. To exit the pool, simply send your staked LP tokens back and you will receive the underlying assets together with the accrued BST rewards. While your LP tokens are staked, you won't be able to move your sLP tokens to other wallets.

There are no fees to deposit to or withdraw from the Liquidity pool (beyond Ethereum gas fees).

After a user deposits assets to a Liquidity pool, a 48 hour lock period disables withdrawals for the user. This security feature is designed to prevent front running reward distributions and promote long-term participation.