Incentives
Information on Gamma's incentive programs
Last updated
Information on Gamma's incentive programs
Last updated
Many protocols have, and continue to use incentives to increase the size of their liquidity pools to facilitate efficient trading. There was talk of incentives dying or becoming obsolete in concentrated liquidity. That has proven to be false. As long as protocols are able to incentivize liquidity pools, they will continue to do so.
There are two primary roles of incentives in concentrated liquidity.
First, incentives attract capital very quickly. This can be useful when protocols are in critical launch periods, or blockchains are trying to deal with surging trading volumes. Incentives have been extremely successful in bootstrapping liquidity for new blockchains and AMMs.
Second, incentives allow Gamma to create even more competitive strategies. Incentives can be used to create more concentration in aggressive strategies, or they can be used to cover a lack of fee production in more passive strategies.
Gamma is able to offer a variety of customizable incentive programs for users and protocols. For a guide on how to use Gamma's incentive programs, see the link below.
For a current list of active incentive programs, see the link below.
Gamma offers three major classes of incentive programs.
Gammachef is Gamma's fork of the Sushiswap Masterchef V2 contract. V2 built on the success of the V1 contract. Gammachef is relatively simple. It allows users to approve and stake their LP tokens in the Gammachef contract. Once deposited, rewarder contracts associated with the Gammachef can distribute rewards to stakers. This non-custodial system allows LPs to stake for rewards even if their LP position moves out-of-range. Users can also "claim on demand" and receive their incentives before or during withdrawal.
Most importantly, the contract is well-vetted and safe. Users can LP and stake for incentives without having to worry about exploits, frontrunning, or malicious transactions.
Gamma has been able to work around some of the limitations of this contract, like tracking LP tokens for profitability, by using databases that plug into our front end.
Gammachef is the most common choice for a staking contract for Gamma's vaults.
Gammachef contracts can be found on:
Angle Merkl is a mechanism to incentivize Uniswap V3-like liquidity positions in a flexible and efficient way. It is built and maintained by Angle Labs, but is separate from the Angle Protocol.
Merkl is a platform where Liquidity Providers (LPs) on concentrated liquidity pools can receive token rewards from people incentivizing liquidity (incentivizors) in a tailored way.
Incentivizors enjoy full flexibility on how they distribute their incentives: they can choose to favor LPs who bring more liquidity of one token or those who have set tighter ranges than others. They can also select whether they want to incentivize out-of-range liquidity or not and if they want some holders of a specific token to earn boosted rewards.
Merkl also allows you to receive rewards without staking your LP tokens.
For a detailed overview of Angle Merkl, see their documentation here:
Gamma can work with various 3rd party incentive programs that can safely recognize and utilize our LP tokens. These include custom pools, airdrops, and other programs.
Please consult the Developer Portal, and please feel free to get in touch with us directly. Gamma can deploy incentive programs quickly and efficiently.
