LP Utility
To trigger BUL emissions on both deposits and borrows, you must lock at least 5% of your deposit's USD value in LP tokens.
Example 1 : If you deposit $1M USDC but have zero LP tokens locked, you will earn the basic APY but won't qualify for additional BUL emissions.
Example 2 : Deposit $1,000 USDC and lock $50 in LP tokens. Now you're eligible for BUL emissions, thanks to hitting that 5% threshold.
The requirement to lock liquidity tokens in LP form serves the Belugas Protocol money market in multiple ways:
Long-Term Participation : Locking LP tokens effectively commits users to a set period, increasing the likelihood that they'll maintain their deposited collateral.
BUL Emissions Activation : This commitment enables BUL emissions, rewarding those who are invested in the protocol's long-term vision.
Attracting New Users : The above dynamics make the Belugas Protocol money market mode appealing to potential liquidity providers, thereby stimulating both growth and development.
This strategic cycle not only sustains long-term liquidity but also catalyzes new inflows, making it a win-win for both individual users and the protocol at large.
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