The protocol has already voted to provide rewards to people who provide liquidity in various HOME and BACON pools. Incentivizing those pools rewards people who use their HOME and BACON to provide liquidity on DEXes. Basically this just means you provide your coins to the pool so others can use them. You still keep your coins.
Having people provide liquidity helps the protocol overall by making it possible to trade our tokens with others. This is important because people want to be able to exchange all kinds of different coins for HOME and BACON. Since you are helping the protocol the protocol will reward you in several ways.
Here are the active pools in the large DEXes with details on their current incentives.
On June 8th, the community voted to give an incentive to liquidity provided to the Curve pool. The approved incentive is for staked LP tokens from this pool to earn BACON rewards at the same rate as staked HOME. Right now this would be .05 BACON per day for every curve LP token.
Curve gives you LP tokens for putting HOME and USDC, USDT, or DAI into the pool. Those are called Curve LP tokens and we use those to determine how much BACON you earn.
This means that a Curve LP token, which you get from putting coins into Curve, would earn as much BACON as 1 HOME in the protocol. Since June, there’s been around 6M HOME staked on average and around 300k Curve LP tokens. These will be airdropped to people who provided liquidity on November 14th when we launch on-chain LP rewards. After the airdrop, they will automatically show up in your wallet and you can track your rewards at https://www.homecoin.finance.
To figure out how much BACON LP tokens will receive, we use the same calculations for LP tokens as for staked HOME. Each Curve LP token will have earned around 0.1 BACON per day up through the first year (September 28th) and 0.05 BACON per day after.
The exact numbers will have varied slightly day to day. The incentives have been calculated precisely for the upcoming airdrop using the on-chain transaction data.
Going forward, LP tokens will be able to be staked in the dAPP and the staking contract will allow claiming each week.
The protocol started an LP incentive for these two BACON pools with the launch of the BACON token in February 2022. Here’s the blog post announcing the program.
As the post describes, there are 10M BACON that will be distributed over the year between Feb 2022 and Feb 2023. The incentives will be split between these two pools based on their relative liquidity.
Recently, the liquidity on the two pools has been fairly consistent around 40k to 60k for Sushi and 100k for Uni. Given those numbers, the average dollar of LP in either pool earns about 0.2 BACON per day.
This pool launched as a partnership with ICHI protocol. ICHI is providing rewards to the pool and you can stake the tokens on the ICHI dApp.
This pool has good promise since it’s based on both of the protocol tokens. We haven’t promoted it yet, choosing to keep the liquidity concentrated in other pools at the start.
This pool hasn’t been incentivized yet in favor of focusing liquidity In Curve.
It’s important to the protocol’s ongoing success to make it easy for people to trade in and out of BACON and HOME easily. We will continue to evaluate new pools and adjusting incentives as a community. Please start a discussion in Discord if there are other pools the community should be considering for incentives.