Pawnfi Guide Book
  • Pawnfi Guide Book
  • Documentation
    • Pawnfi Docs
  • Beginner
    • How to create a wallet
    • How to connect to wallet
    • How to add network
    • What is gas fee?
  • Home Page
    • Dashboard
    • App Map
  • Buy NFT
    • How to flash trade NFT (Buy)
    • How to buy an NFT from marketplace
    • How to make an offer
    • How to manage offers
  • Sell NFT
    • How to flash trade NFT (Sell)
    • How to consign an NFT
    • How to list an NFT for sale
    • How to manage listings
  • Loan
    • How to leverage your NFT
    • Lending Market - how to supply
    • Lending Market - how to withdraw
    • Lending Market - how to borrow
    • Lending Market - how to repay
    • FAQs on Lending Market
  • Invitation Program
    • How to invite others
    • How to connect to inviter
  • Liquidity Boosting
    • Basic Rule
    • How to commit liquidity
    • How to claim liquidity and reward
  • Ape Staking
    • How to stake $APE
    • How to withdraw $APE
    • How to stake NFT
    • How to claim staking rewards for NFT
    • How to set Auto Compound
    • How to terminate NFT staking and withdraw NFT
    • FAQs on Ape Staking
  • PAWNFI SAFE
    • How to place $PAWN in SAFE?
    • How to displace $PAWN?
    • How to extend placing time?
    • How to share safety incentives?
  • Liquidity Incentives
    • Basic Rule
    • How to stake liquidity for active incentives
    • How to unstake liquidity
    • How to vote?
    • How to claim liquidity incentives
    • How to boost rewards
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  1. Liquidity Boosting

Basic Rule

PreviousHow to connect to inviterNextHow to commit liquidity

Last updated 2 years ago

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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 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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