How to provide liquidity
Earn a 10-15% fee from the sale of every lottery ticket.
Add Liquidity at megapot.io/liquidity
Go to the Liquidity page
Supply BLAST/ETH and choose a stake percentage.
This determines how much money is at risk for every jackpot.
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.
When users enter the lottery, they are "buying" back your pre-purchased tickets. If users buy more tickets than the initial jackpot, then LPs have no risk.
Your liquidity is locked until the end of the lottery, after which points are calculated.
LPs earn 100 Megapoints per day for every 100k BLAST or 1 ETH staked
LPs earn 1 Megapoints per day for every 100k BLAST or 1 ETH that isn't staked.
After every lottery, your position is rebalanced.
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 lottery 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 lottery 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 and earning points
Stake Percentage: This is the % of the total liquidity supplied contributed to the initial jackpot. If the total ETH supplied is 10 and the stake percentage is 10%, then 1 ETH will be added to the next lottery.
Edit liquidity position
Go to the Liquidity page
Select "Edit Position"
You can supply more BLAST/ETH, edit your stake percentage, or do both.
Supplying BLAST/ETH takes place immediately.
Your new stake percentage goes into effect with the next lottery.
You earn points for this change at the beginning of the next lottery.
Withdraw liquidity position
Go to the Liquidity Page
Select "Withdraw all"
Your position will be unlocked at the end of the current lottery. You'll see the status reflected under the "Changes Starting Next Lottery" section.
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 lottery.
How long is the LP commitment?
LP commitment is as long as you want! You can withdraw at any time, withdrawal is processed next lottery. LPs are rewarded with points every day their money is staked. We're finalizing details, but there will be multipliers if you keep your money in longer, especially at launch since it can take time to build up momentum.
Would it be advantageous for LPs just to only LP in the last minute? Eg. If they see there are more tickets sale than staked LP, then there are only fees to earn and no risk to LP positions
No, any amount LP'd only takes into effect next lottery.
However, the liquidity pool cap that the team can set can take into effect at any time. Thus, if many users are buying many tickets that day, team can cap LP deposits immediately to ensure current LPs maintain high yield for the next few days.
Where is the contract and audit?
You can see details on the Smart Contract page.
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