Liquidity Mining (Active Liquidity Incentives)

Liquidity Incentives will be open in near future

It is a governmental process to leave iToken holders compete for $PAWN token reward. By staking iToken to specific gauge and perform Gauge Voting with voting power, each lending pool has a chance to win all the weekly active reward.

Note that participants will need to stake his/ her iToken in the gauge (each lending pool will have its corresponding gauge) to earn liquidity mining reward. Also it is not guaranteed that every gauge will be distributed with incentives - while the total amount is based on the market condition or through a successful Pawnfi Governance proposal, the distribution is based on the result of weekly gauge voting. That is, with 0 voting, a gauge with the most liquidity may still be earning 0 $PAWN!

For liquidity mining, there is also a boosting mechanism to amplify users $PAWN token reward. See Boosting your $PAWN Rewards for more information.

Important things to know about staking iToken:

There is no safety issue staking iToken, but please exercise caution! By staking iTokens, you’re temporarily transferring your balance of the underlying asset to a specific gauge. As a borrower, if you stake the iToken, which the underlying has been enabled as collateral, it will lower your Borrow Limit and make you more vulnerable to liquidation.

However, as a pure supplier, there is zero risk as you are not borrowing anything, and iTokens will keep accruing interest for you through their exchange rate. When you unstake your iTokens, the amount will not change. Still, they become convertible into an increasing amount of their underlying token.