The LP Rewards Program is officially over.
But don’t rush to pull your liquidity!
LP Rewards was a SMASHING success!
151.25 Billion LOAN tokens were distributed to the liquidity providers.
These liquidity providers helped the USDL:PLS pair on PulseX v2 to become:
But even though it’s over, and you won’t accrue LOAN rewards anymore, here is why you should not pull your liquidity.
Since the LOAN token emissions were so outstanding, many liquidity providers forgot they were also earning trading fees on PulseX.
At the time of writing, 24h volume through the USDL:PLS pair on PulseX v2 was 2.4 million USD worth of either PLS or USDL.
If you apply the 0.22% trading fees earned by the LP, then you’ll find that liquidity providers earned a total of 5,280 USD worth of PLS and USDL in one day!
It is not unreasonable to assume that other users will pull their liquidity because they only wanted to accrue the LOAN token rewards.
This is great news for long term LPs, because they will receive a larger portion of the fees since they own a significantly higher portion of the liquidity pool.
There will be no more LOAN token emissions to the liquidity providers on the USDL:PLS pair on PulseX v2.
However, it is not an unreasonable assumption that trading fees through PulseX for the LPs will ramp up because other liquidity will be pulled to make yield elsewhere.
Not to mention that volume across all of PulseChain has ramped up as well, resulting in increased fees for all LPs.
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Connor is a US-based digital marketer and writer. He has a diverse military and academic background, but developed a passion over the years for blockchain and DeFi because of their potential to provide censorship resistance and financial freedom. Connor is dedicated to educating and inspiring others in the space, and is an active member and investor in the Ethereum, Hex, and PulseChain communities.
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