Incentive Programs

Frequently Asked Questions (FAQ) for Gamma's incentive programs
What are incentive programs?
Incentive programs are programs that provide the user with a reward (usually a token) for providing liquidity to a vault.
Why does Gamma use incentive programs?
Incentive programs are popular with our partners. They often seek to provide incentives for liquidity providers to provide liquidity to their protocols. Through Gamma's vaults, users can provide liquidity on various exchanges and earn extra incentives.
Are incentive programs yield farming?
Yes, they are classified as a type of yield farming. 
What kinds of rewards are distributed in incentive programs?
The rewards depend on the incentive program itself. Some incentive programs provide their native protocol token, while others provide more universal rewards like ETH or stablecoins. 
What is the difference between an internal and external incentive program?
An internal incentive program uses Gamma's user interface to collect rewards. Users can create LP positions, stake their LP tokens, redeem, and collect rewards on one site.
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An external incentive program uses a third-party interface to collect rewards. Users create LP positions on Gamma's user interface but receive rewards by staking those LP tokens elsewhere or by the rewarder automatically recognizing their ownership of LP tokens. 
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Some incentive programs can operate internally and externally at the same time. 
How can I tell how long incentive programs will last?
Gamma and Gamma's partners provide the parameters of incentive programs. Usually, an indicator on the user interface will show the remaining time. 
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Can you help me step-by-step participate in an incentive program?
Yes. We publish guides for participating in incentive programs in Incentive Programs​
How do incentive programs effect my tax liability?
That depends on the tax laws of your jurisdiction. We suggest speaking with a qualified professional on the matter.
Do I earn fees while participating in an incentive program?
Yes. If you created LP tokens by depositing them into Gamma's vaults, you'll earn fees for that liquidity position and the incentives. Once the incentive program is over, you'll continue to earn fees as long as the vault is creating them. 
Will I still receive incentives if my the vault goes of range?
Yes! Our rewards contract is based on the number of LP Tokens a user has. It is agnostic to whatever range is indicated because everyone within the vault is providing in the same range. 
Does Gamma take a portion of the incentives for themselves?
No. Gamma does not take any incentives. Gamma only takes a percentage of the fees generated from the LP position. 
Do I earn Staked ETH rewards while participating in an incentive program?
Yes, but this number is not currently integrated into our fee or reward statistics. 
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Am I exposed to impermanent loss (IL) while participating in an incentive program?
Yes. Any deposit into any vault on Gamma can be affected by impermanent loss. Be mindful of when you choose to enter a vault and exit a vault. 
Why can't I see my LP tokens on the dashboard after staking them?
This is a current limitation of Gamma's rewards contract. The LP tokens are staked in a rewards contract (Masterchef). They are still in your custody, though, as only you can withdraw them. We are building a database workaround solution to this. 
Why can't I see my LP tokens on Debank or Zapper after staking them?
This is a current limitation of Gamma's rewards contract. The LP tokens are staked in a rewards contract (Masterchef). They are still in your custody, though, as only you can withdraw them. We are building a database workaround solution to this. 
I left my LP tokens in staked and now I can't see them on the UI. Where are they?
It's likely a new vault has been deployed. Search the dashboard to a link for a legacy vault, or contact the team for assistance.
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Last modified 1mo ago