To bootstrap protocol usage, Interest Protocol has earmarked 10% of IPT total supply (10,000,000 IPT) towards a liquidity program. Two-thirds of the rewards (6,666,667 IPT) will be distributed to USDi borrowers, and the remaining one-third (3,333,333) will go to market makers who provide ETH-USDi liquidity on Uniswap v2. The liquidity program will last for two years.
To bootstrap protocol usage, Interest Protocol has earmarked 10% of the IPT total supply (10,000,000 IPT) towards a liquidity program. Two-thirds of the rewards (6,666,667 IPT) will be distributed to USDi borrowers, and the remaining one-third (3,333,333) will go to market makers who provide ETH-USDi liquidity on Uniswap v2. The liquidity program will last for two years.
Approximately 1,833,325 IPT will be distributed during the first quarter (13 weeks) of the liquidity program. This amount will decrease by approximately 166,667 IPT every quarter.
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## Borrower Incentives
6.67% of IPT total supply will be distributed pro-rata to users who borrow USDi from Interest Protocol. For each borrower, we calculate $\frac{\text{USDi borrowed by borrower}}{\text{total USDi borrowed}}$ at each block. The average of this percentage over the course of a week is the borrower's share of the rewards for that week.
6.67% of the IPT total supply will be distributed pro-rata to users who borrow USDi from Interest Protocol. For each borrower, we calculate $\frac{\text{USDi borrowed by borrower}}{\text{total USDi borrowed}}$ at each block. The average of this percentage over the course of a week is the borrower's share of the rewards for that week.
This means that users earn more rewards if they borrow when the total amount of outstanding USDi loans across the protocol is smaller.
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## Market Maker Incentives
3.33% of IPT total supply will be distributed pro-rata to users who provide ETH-USDi liquidity on Uniswap V2. For each liquidity provider, we calculate $\frac{\text{liquidity provided by user}}{\text{total liquidity in pool}}$ at each block. The average of this percentage over the course of a week is the liquidity provider's share of the rewards for that week.
3.33% of the IPT total supply will be distributed pro-rata to users who provide ETH-USDi liquidity on Uniswap V2. For each liquidity provider, we calculate $\frac{\text{liquidity provided by user}}{\text{total liquidity in pool}}$ at each block. The average of this percentage over the course of a week is the liquidity provider's share of the rewards for that week.
This means that users earn more rewards if they provide liquidity when the total amount of liquidity in the ETH-USDi pool is smaller.
