How to provide liquidity

Learn about how you earn as a liquidity provider

Earn a 20-30% fee from the sale of every jackpot ticket.

Add Liquidity at megapot.io/liquidity

1. Go to the Liquidity page

2. Supply USDC

3. Choose a stake percentage.

   1. This determines how much money is at risk for every jackpot.

   2. The expected value of this stake is neutral, such that you earn when LPs collectively win the jackpot, and lose when a player wins the jackpot.

   3. When users enter the jackpot, they are "buying" back your pre-purchased tickets. If users buy more tickets than the initial jackpot, then LPs have no risk.

   4. Try this calculator to see returns vs variance

4. Your liquidity is locked until the end of the jackpot, after which points are calculated.

   1. LPs earn 100 Megapoints per day for every 1000 USDC staked

   2. LPs earn 1 Megapoints per day for every 1000 USDC that isn't staked.

5. After every jackpot, your position is rebalanced.

   1. Stake % does not fluctuate. Fees accrued to your total position and are rebalanced.

After you deposit liquidity, please join our Telegram chat to get updates on jackpot results and any changes we may make during this beta period.

You can edit or withdraw liquidity at any time, though it gets processed at the next jackpot run.

View liquidity position

The liquidity status page shows your current liquidity position. A liquidity position is composed of:

• Total Supplied: This is the total amount deposited to Megapot.

• Stake Percentage: This is the % of the total liquidity supplied contributed to the initial jackpot. If the total USDC supplied is 1000 and the stake percentage is 10%, then 100 USDC will be added to the next jackpot.

Edit liquidity position

1. Go to the Liquidity page

2. Select "Edit Position"

3. You can supply more USDC, edit your stake percentage, or do both.

   1. Supplying USDC takes place immediately.

   2. Your new stake percentage goes into effect with the next jackpot.

4. You earn points for this change at the beginning of the next jackpot.

Withdraw liquidity position

1. Go to the Liquidity Page

2. Select "Withdraw all"

3. Your position will be unlocked at the end of the current jackpot. You'll see the status reflected under the "Changes Starting Next Jackpot" section.

4. At that time, you can withdraw your stake. Note that you will no longer earn LP points once your liquidity position is in withdrawal mode.

FAQ

What stake percentage can LPs set?

LPs can set any number from 1-100%.

In liquidity provisioning terms, you can think of the stake percentage as the amount that's in-range. Thus, if you select 33%, 67% of your liquidity is not earning fees, though it's still earning Megapoints.

When can I change my stake percentage?

You can change participation at any time and it'll take into effect the next jackpot.

How long is the LP commitment?

LP commitment is as long as you want! You can withdraw at any time, withdrawal is processed next jackpot. LPs are rewarded with points every day their money is staked.

Would it be advantageous for LPs just to only LP in the last minute? Eg. If they see there is significant tickets sold so there's high yield

No, any amount LP'd only takes into effect next jackpot.

Also, LPs can only deposit liquidity during 1 day per month. This ensures stability in LP earnings.

Where is the contract and audit?

You can see details on the Smart Contract page.