AMPL Geyser — Beehive 2.0
Sept. 3, 2020, 9:59 p.m.
Liquidity is a critical pillar of the Ampleforth elastic finance stack, as laid out in the Foundation’s roadmap. For this reason, last month ~77.9M AMPLs were donated to the Ecosystem Fund, in order to fully support Geyser and Geyser-like programs over the course of the next 10 years.
Beehive 2.0 Summary
We're thrilled to announce the new Beehive 2.0 Geyser Program, here are some quick details:
- Start Date:
September 10, 2020
- Reward Pool:
1% of total AMPL supply
- Distribution Schedule:
- Stake for 1 month for
- Stake for 2 months for
Once the program goes live you'll be able to find it on our geysers page.
How to Migrate from Beehive 1.0
Participants in Beehive 1 will need to choose to migrate their Uniswap liquidity provider (LP) tokens in order to take advantage of Beehive 2.
- Withdraw your
UWETHAMPL-V2tokens from Beehive 1.
- Deposit your
UWETHAMPL-V2tokens in Beehive 2.
First time Farmers
If you have not participated in an Ampleforth Geyser before, here’s how it works:
AMPLinto the Uniswap V2 liquidity pool.
UWETHAMPL-V2tokens in return.
- Stake those
UWETHAMPL-V2tokens in the Beehive 2 Geyser.
Once completed, you can check your tokens and rewards on the Geyser stats page. You can add more Uniswap LP tokens whenever you want and there is no minimum lockup period. You receive your share of the Geyser rewards when you unstake. Remember: the longer you stake, the more rewards you’ll receive.
Ampleforth is the first elastic base-money. The Ampleforth protocol automatically increases or decreases the supply of AMPL across all user wallets based on price. When price is high wallet balances automatically increase. When price is low wallet balances automatically decrease. This supply adjustment operation happens once per day and is called a rebase. This daily rebase operation is applied universally and proportionally across every wallet’s balance. This means AMPL is non-dilutive. Like Bitcoin, if you own 1% of the overall network you will always own 1% unless you actively make a transfer. For more information please visit: www.ampleforth.org.
Below we answer some of the most commonly asked questions about the Geyser programs.
Q: Who holds the funds?
Uniswap contracts hold the tokens associated with the UNI-V2 LP tokens as they normally do. The Geyser contracts hold the staked UNI-V2 tokens and the AMPL tokens for distribution (in the locked and unlocked pools). All ownership is accounted for on-chain via smart contracts.
Q: How is my pool share calculated?
The more you stake and the longer you stake relative to others, the greater share of the unlock pool you receive.
Ownership share of the unlock pool is equal to:
user_staking_token_time / global_staking_token_time
Imagine there are two users in the system, Alice and Bob. Alice has staked 10 tokens for 1 day, Bob has staked 5 tokens for 3 days.
Alice_token_time = 10 tokens * 1 days = 10 Bob_token_time = 5 * tokens * 3 days = 15 Global_staking_token_time = (Alice_token_time) + (Bob_token_time) = 25 token_days Alice owns (10 / 25) = 40% Bob owns (15 / 25) = 60%
The ownership percentage is over the unlocked pool. As soon as you withdraw your staked tokens, you get your share of the currently unlocked tokens, irrespective of the locked tokens still waiting to unlock.
Ownership percentages and token unlocks are continuous, meaning they're calculated block-by-block.
*These percentages assume the maximum bonus from the bonus period has been met.
Q: How do the reward multipliers work?
The Geyser is meant to incentivize long-term liquidity providers. While there are no hard lockups for staking, there is a benefit to staking your tokens for longer.
When you begin staking, you begin at a 1X bonus multiplier on your reward earnings. This multiplier increases throughout the Geyser schedule, to a maximum of 3X after two months. An easy way to think about it is: each additional month you hold, you receive 'an extra X' on your multiplier, up to a maximum of 3X. For example, holding for an entire month gives you a 2X multiplier, and holding for two months, a 3X multiplier.
If you withdraw halfway through month 2 (after 6 weeks), you would get half-way between 2X and 3X--it's a simple linear function.
Each individual stake marks the beginning of it's own period. So if you stake two different times then withdraw, the first stake and the second stake may have different bonus amounts. Withdrawn stakes always start with the newest staked tokens.
If this sounds complicated, there are really just two things to keep in mind:
1. Try to keep stakes for at least 8 weeks in order to receive reward multipliers.
2. The Geyser will always show your current stake amount and reward balance.
Q: What about exchanges beyond Uniswap?
We recently launched Enceladus Geysers on Mooniswap targeting 9 different liquidity pools, though Uniswap V2 is the only exchange with Geyser support for the AMPL-ETH trading pair.
As the DeFi landscape evolves and the Foundation’s roadmap progresses, we’ll evaluate new Geyser and Geyser-like programs for ensuring liquidity and rewarding liquidity providers. This may even include supplying on lending platforms.
If there are other platforms you'd like to see included, reach out to us here in the forums, over email, or in our Discord channel.
Q: Where can I see the code?
The Geyser solidity code and contract addresses here on github.
Q: Have the smart contracts been audited?
Yes, the on-chain code has been audited by CertiK. You can find the report here: https://github.com/ampleforth/ampleforth-audits/tree/master/token-geyser
Q: Do rebases still impact the Uniswap AMPL and Geyser pool AMPL?
Yes. AMPL supply rebases are universal and affect all wallets proportionally and equally, whether they are an end-user or a contract wallet.
This means the Geyser locked pool, Geyser unlocked pool, and Uniswap's AMPL pool can increase or decrease in size each rebase period. Your UNI-V2 LP tokens remain static in balance, but can be converted into the correct amount of AMPL when they are redeemed, similar to Compound CTokens.
Q: Do I still receive my Uniswap LP trading fees?
Yes. The profit-and-loss of Uniswap tokens are unchanged by the Geyser. The Geyser contracts simply hold the UNI-V2 LP tokens for you as long as they are staked.
Q: I'm a developer, can I build on top of the Geyser?
Yes. The Geyser implements the EIP-900 staking interface.
You can find the Geyser solidity code and contract addresses here on github: https://github.com/ampleforth/token-geyser
Q: Is there an owner key? Can the smart contracts be changed?
The code is non-upgradeable and cannot be paused or halted. There is only one function protected by an owner key: the function that adds new tokens to be distributed. This is a security limitation to ensure we don't hit any memory or computation limits. Once AMPL have been deposited for distribution, the only way they can be withdrawn is through the staking process.
Q: Will the Ampleforth Foundation participate in the Geyser?
No, the Ampleforth Foundation will not provide liquidity tokens into the Geyser to generate rewards. The Ampleforth Foundation does provide liquidity to DEX pools, including the Uniswap V2 AMPL/ETH pool, to encourage a healthy and liquid market. However, this liquidity is separate from the Geyser. For anyone curious, this data is all transparent and available on-chain through tools like Etherscan.
Q: What happens to tokens in the Beehive 1 Geyser at the end of the 90 day rewards accrual period?
Beehive 1 rewards stop accruing after the 90 rewards accrual period ends on October 10th, 2020. Participants in the Beehive 1 Geyser can remove their tokens whenever they like, including at any point after the rewards accrual period. Rewards are claimed by participants when they remove their tokens from the Geyser.
Q: Do I have to move into Beehive 2 Geyser?
No, you do not have to move into the Beehive 2 Geyser. AMPL Geyser participation is always voluntary and you can stop participating in a Geyser at any time. There is no migration required from Beehive 1 to Beehive 2. Many participants in the Beehive 1 Geyser will prefer to wait until they have reached the maximum 3x multiplier before they consider migrating their tokens to Beehive 2. To participate in a Beehive Geyser, you need to stake Uniswap liquidity provider tokens which is described in the beginning of this post.
Q: Why was the AMPL Beehive 2 Geyser announced now, even though the Beehive 1 Geyser is still in a rewards accrual period?
The long-term vision of the Liquidity Mining Programs as outlined in the State of the Network is to deliver on the liquidity pillar of the roadmap. In order to best achieve this, there is a long-term plan to run overlapping AMPL Geysers now and in the future.
Additionally, announcing the upcoming Beehive 2 Geyser a week ahead of time allows an equal chance for all entrants considering participating in Beehive 2.