🐇
Underground Society
  • 🕳️Welcome to The Underground Society
    • ⚗️What is UGS Labs?
    • 🧬What is The Underground Society?
  • UGS Labs Product Overviews
    • 🟡Core
      • What is Core?
      • Who can benefit from Core?
      • Where can you use Core?
      • How does Core function?
    • ⚫Black Market
      • What is The Black Market?
      • How does the Black Market work?
      • Where can you access the Black Market?
    • ⚪Cedar
      • What is Cedar?
      • How can you access Cedar?
    • 🌊Liquidity Pools
      • How will Liquidity Pools function?
      • Liquidity Pool Dynamics
  • Underground Society NFT Collection
    • 🎭The Collection
      • Utility
      • Lore
      • Factions
    • 🪙$Talon
      • Tokenomics
      • Utility of Talon
  • 🐇The Future
Powered by GitBook
On this page
  1. UGS Labs Product Overviews
  2. Liquidity Pools

Liquidity Pool Dynamics

How are fees distributed to pools?

PreviousHow will Liquidity Pools function?NextThe Collection

Last updated 2 years ago

An example: Let's say $1,000,000 is powering CORE, and assume each pool was created with 50 NFTs.

  • Pool A is = $600,000 or 60% of the TVL

  • Pool B = $400,000 or 40% of the TVL

    • Core's 1-month revenue = $100,000

      • Pool A is attributed 60% or $60,000:

        Split = 65% | 35% or $39,000 | $21,000

      • Pool B is attributed 40% or $40,000:

        Split = 65% | 35% or $26,000 | $14,000

Liquidity Pools
Tier 1
Tier 2
Tier 3

NFTs Staked

50

100

150

Split (UGS | User)

65% | 35%

55% | 45%

45% | 55%

In a PUBLIC POOL, creators can assign a "Whale Fee". This fee takes x% from their side of the split and the rest is proportionally split between those that provide liquidity in that pool.

Let's discuss specifics around claim periods and lockups. Our EPOCHs are measured as 1 week.

In order to ensure the stability of the liquidity pools we will ask liquidity providers to lock for certain durations. NFT Default Lock Period: 1 Month

Liquidity Lock Period: 2 epochs

Fees are claimable once every epoch. Community feedback is incredibly important to use in how these lockups will be determined and when they may be adjusted.

Note: Increasing the NFT lockup period will add a bonus to the splits of your pool.

The percent of fees generated attributed to a specific pool is equal to the pool's representation of CORE's Total Value Locked.

🌊