LQTY Rewards and Distribution
LQTY is the secondary token issued by the Liquity protocol. It captures the fee revenue that is generated by the system and incentivizes early adopters and Frontend Operators.
LQTY rewards will only accrue to Stability Providers — i.e. users who deposit LUSD to the Stability Pool, frontends who facilitate those deposits, and liquidity providers of the LUSD:ETH Uniswap pool.
As technical rewards, they are based on a preprogrammed functionality of the protocol and not on a claim towards Liquity AG or any third party.
LQTY has a max supply of 100,000,000 tokens.
No. LQTY is not a governance token, as there is no Liquity governance.
LQTY is earned in three ways:
- Providing liquidity to the LUSD:ETH Uniswap pool.
LQTY's community issuance (outside of LP incentives and the Community Reserve) follows a yearly halving schedule, described by the following function:
32,000,000 * (1–0.5^year). The purpose of this issuance curve is to favorably incentivize early adopters while also maintaining incentives for the long term.
No. LQTY could only be earned by the methods mentioned above.