Liquidity provider questions

1. Q: Why doesn't my liquidity mining generate income?

A: In this case, the income is not displayed due to the large delay of the wallet network. Your income is counted normally. It is recommended to switch to a low-latency node. If it is not resolved, please go to the community for help.

2. Q: How is impermanent loss generated?

A: Generally speaking, impermanent loss refers to the comparison of funds that you did not join in market making and after joining the market making, which is called impermanent loss. Impermanent losses will generally exist in the initial stage of market making or unilateral market conditions. With the accumulation of handling fees and price fluctuations, impermanent losses will gradually be smoothed out, and market making gains will be realized.

Get to know more:

https://support.defibox.io/hc/en-us/articles/900002435786-What-is-impermanent-loss

2.1 Q: Can impermanent losses be avoided?

A: It is unavoidable, and mining income can partially cover your impermanent losses.

2.2 Q: Can you recommend a trading pair with the smallest impermanence loss?

A: This cannot be recommended, because it is impossible to determine the rise and fall of your market-making token, and it is impossible to judge the size of impermanent losses.

3. Q: How is the transaction fee income allocated?

A: 0.2% of fee income is allocated to market makers, and 0.1% is allocated to protocol income.

3.1 Q: How is the fee income paid to me? Is it a one-time pick-up or an instant release?

A: It is directly added to your liquidity pool. When the number of market-making is reduced, the market-making fee income will be distributed in proportion to the amount of your market-making.

3.2 Q: Are fee income and impermanent loss directly deducted? How do I know the details and not be deducted more impermanent losses?

A: Impermanent losses may not be covered in a short period of time. The profit and loss statistics are estimated by the system, and it is impossible to carry out completely accurate statistics. The actual settlement shall prevail.

3.3 Q: How is the 0.1% protocol revenue of Swap distributed?

A: The distribution of Swap 0.1% transaction volume is: 45% is used for repurchase and transfer to the black hole address to burn BOX tokens, 30% is used as the income of the executive team, 15% staking incentive: 50% of which is used for BSS, and the other 50% is used to incentivize Vault.defi protocol, 10% It is used for agreement control value, namely risk reserve and repurchase market making.