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What is SBT-005?

Started by xiaohama, May 27, 2023, 11:14 AM

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xiaohama

SBT-005 belongs to the comprehensive statistics of FDT liquidity mining SBT, according to the LP when LP is locked
The number and weight system of the system to determine the number of minted SBT-005, in the case of current lock-up,1 LP can mint 10 SBT-005, if locked for 3 months, the weight coefficient is 3. Deposit 1 LP to mint 30 SBT-005. At the same time, if the lock time end, need to take out LP from the mine pool, destroy the same ratio according to the proportion of LP taken out Example of SBT-005. The specific number of casting SBT will be adjusted according to the actual operation situation.

maykl

Thank you for providing additional information about SBT-005 in the context of FDT liquidity mining within the FireDAO ecosystem. This helps to clarify how the system works, especially concerning the minting and destruction of SBT-005 tokens based on LP (Liquidity Provider) lockup and withdrawal. Here's a summary of the key points:

SBT-005 and FDT Liquidity Mining: SBT-005 appears to be related to FDT liquidity mining, specifically focusing on LP tokens provided by users.

LP Lockup and Weight Coefficients: The number of SBT-005 tokens that can be minted is determined by both the duration of LP lockup and a weight coefficient. In your example, 1 LP locked for 3 months with a weight coefficient of 3 can mint 30 SBT-005 tokens.

Adjustment Based on Actual Operations: The specific number of SBT-005 tokens that can be minted is subject to adjustments based on actual user operations and conditions within the ecosystem. This flexibility allows the system to adapt to changing circumstances and user behavior.

Destruction Upon LP Withdrawal: Importantly, when LP tokens are withdrawn from the mining pool, a proportionate amount of SBT-005 tokens is destroyed. This ensures that the number of SBT-005 tokens in circulation accurately reflects the amount of LP tokens actively participating in liquidity provision.

Incentivizing Liquidity Provision: The mechanism you described aims to incentivize users to provide liquidity and lock up their LP tokens for extended periods by rewarding them with SBT-005 tokens. These tokens can potentially represent ownership or governance rights within the FireDAO ecosystem.

Overall, this system encourages active participation in liquidity provision and aligns the interests of users with the health and stability of the FireDAO ecosystem. It's a common approach in DeFi (Decentralized Finance) projects to ensure that liquidity remains available while rewarding those who contribute to it.

asawale

I regard SBT005 as the most important of all the seven SBTs because it is generated based of the LP added or farmed by the users or the official members of the FireDAO ecosystem.