Following the announcement of the LM 2.0, we are very close to initiating the rewards for the protocols on Polygon. If you have yet not checked the details about you, you could refer to the earlier document.
This article is to discuss some of the most frequently asked questions on the campaign.
Ques: How to apply for LM 2.0?
Ans: There are two parameters to be selected for LM 2.0. Total Value Locked (TVL) and Weekly Average Users (WAU). If you want to select TVL as the basis you can apply to LM 2.0 by filing out this form: https://airtable.com/shrisgVIoec3CrJZD. In case, you have selected WAU as the KPI please fill out this additional form as well: https://airtable.com/shrqTkUCgsnJqXSeL
Ques: Who is eligible for LM 2.0?
Ans:All dAPPs that have previously never received liquidity mining rewards from Polygon and are deployed on Polygon are eligible for the LM 2.0. If a dAPP has received liquidity mining incentives previously, they are not eligible.
Ques: Who is eligible for LM 2.0?
Ans: All dAPPs that have previously never received liquidity mining rewards from Polygon and are deployed on Polygon are eligible for the LM 2.0. If a dAPP has received liquidity mining incentives previously, they are not eligible.
Ques: Are dAPPs from other chains eligible?
Ans: Yes, dAPPs from other chains are also eligible. They just have to ensure that they meet the KPI requirements of LM 2.0 for a period of 1 month after they deploy on Polygon.
Ques: Can Anon teams take part in LM 2.0?
Ans: Yes, LM 2.0 can be provided to projects with anon teams as well. They just have to ensure that they have a publicly verifiable multisig which is mentioned in the requirements of LM 2.0.
Ques: How are the rewards determined for LM 2.0?
Ans: There are 2 primary KPI’s, namely total value locked (”TVL”) and weekly active users (”WAU”)
Tier 1: TVL ≥ $100M gets you ~$1M linearly spread across 6 months
Tier 2 TVL < $100M but > $50M gets you ~$500k linearly spread across 6 months
Tier 3 TVL < $50M but > $15M gets you ~$250k linearly spread across 6 months
Tier 4 TVL < $15M but > $5M gets you ~$100k linearly spread across 6 months
Weekly Active Users Tiers:
Tier 1 [More than 5k WAU] = ~$1M linearly spread across 6 months
Tier 2 [3-5k WAU] = ~$500k linearly spread across 6 months
Tier 3 [2-3k WAU] = ~$500k linearly spread across 6 months
Tier 4 [1-2k WAU] = ~$100k linearly spread across 6 months
Ques: How is the first LM 2.0 airdrop determined?
Ans: The initial airdrop of Matic tokens is based on snapshots of TVL and WAU for all dAPPs from DeFi Lama. The airdrop will be done on a pro-rata basis based on the TVL and WAU reached by all qualifying dAPPs.
Ques: Can the emissions to individual dAPPs change?
Ans: The emissions once fixed will remain the same for a period of 1 month (1 EPOCH). During this time snapshots will continue to be taken for TVL and WAU which will be used in the succeeding month to decide the emissions for that particular month.
Ques: What would happen if a new dAPP deploys in the middle of the month?
Ans: If a new dAPP ABC deploys in the middle of the month, say 15th March, then it will first have to maintain either of the KPI’s for a period of 1 month to qualify, i.e. till 15th April. It would then be eligible to get PLM tokens from 1st May onwards based on its KPI’s from 1st April to 30th April.
Ques: How does LM 2.0 work?
Ans: LM 2.0 is designed as yield farming for protocols. Any protocol that fulfils the KPI’s would receive PLM Tokens (”Polygon Liquidity Mining”) on a per block basis. These tokens would then have to be staked in a staking contract to earn Matic Tokens on a per block basis.
Ques What are dAPPs expected to do with the Matic Token rewards?
Ans: Ideally, the best use case of the rewards would be to use it towards building the dAPPs presence on Polygon. However, all dAPPs are free to do as they please with the rewards.
If you are a dapp looking to hop onto Polygon and build a protocol, there wouldn’t be a better time for you to build here.