Liquidity Boosting

Liquidity boosting is a liquidity incentive event designed to enhance P-Token liquidity on Uniswap, allowing participants to commit unilateral or bilateral liquidity through Pawnfi's proxy contract and become Uniswap LPs.

To join liquidity boosting, commit ETH, P-Token, or both to the appropriate pool. Each pool has distinct parameters for you to choose from, including:

  • Underlying Tokens: P-Token (e.g., P-BAYC) and ETH

  • Target Amount: Total liquidity sought on each side

  • Price Range: Uniswap V3 price range that the pool will supply liquidity for

  • Raising Duration: Timeframe for users to contribute to the pool

  • Boosting Period: Duration the pool will commit liquidity to Uniswap

  • vAPY: Expected return calculated solely from $PAWN token rewards, excluding swap fees and bonuses

Suppose the target isn't reached before the deadline. In that case, the pool will be canceled, and participants must visit the "Cancelled" page to reclaim their tokens. However, if the target is met, the proxy contract will provide liquidity on Uniswap V3 for market-making. In addition, a price range will be established in Uniswap V3 to optimize capital efficiency, given NFT's nature.

Upon the boosting period's conclusion, participants can claim four types of tokens and rewards:

  • $PAWN token rewards

  • Committed liquidity's final position: The final amount may differ from the initial commitment due to AMM pool price change. You can refer to this article for detailed explanation on Unsiwap Mechanism.

  • Swap fees: Uniswap v3 pool-generated trading fees will be evenly distributed among participants.

  • Bonus: Changes in P-Token prices during the raising period may impact the liquidity needed on Uniswap v3. Pawnfi will optimize capital efficiency and rewards so that any unused liquidity will be supplied in the Pawnfi lending market, with the resulting income distributed as a "Bonus."

Please note:

  • Liquidity boosting operates on a first-come, first-served basis.

  • Once you committed your liquidity in the boosting pool, you will not able to claim back the committed liquidity until

    • The event is cancelled as the raising is not completed before raising duration

    • The event is cancelled due to market volatility or NFT price fluctuation

    • Boosting period ends if the liquidity boosting kicks start.

  • The Pawnfi team reserves the right to cancel or delay a boosting pool due to market volatility or NFT price fluctuations, even after the raising is completed. Participants must visit the "Cancelled" page to reclaim tokens if a pool is cancelled.

  • $PAWN rewards are temporarily unclaimable but can be tracked in your account and claimed later. Pawnfi will announce when $PAWN withdrawals become available.

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