1. How do I provide liquidity to SWTH pools if I currently have SWTH staked?

Staked SWTH cannot be used to provide liquidity to liquidity pools. They must first be unstaked which requires a 30 day unbonding period

2. Can I withdraw my committed LP tokens before the unlock date?

No. Once LP tokens are committed, they can only be unlocked at the end of the lockup period.

3. If I commit LP tokens again, when can I unlock them?

When you commit more LP tokens, all your current commitments will be reset to the new commitment. The new commitment period can only be equal or greater to the remaining lock-up time from the previous commitment. (the combined amount will enjoy the same boost and lockup)

4. What do I earn if I do not commit my LP tokens?

If you only provide liquidity and do not commit your LP tokens, you will only earn from maker rebates. Maker rebates are redirected into the pool directly, growing the pool size and your pool share.

5. What rewards do I get if I commit LP tokens?

You will receive liquidity rewards for committing LP tokens. The amount of rewards you receive is dependent on the pool reward weights and how long you commit your tokens for.

6. What rewards do I get if I commit my LP tokens for 0 days?

You will receive the base level of liquidity rewards without the additional reward boost.

7. How does committing my LP tokens boost my rewards?

⚠️Boosted rewards are additional rewards earned by liquidity providers who commit their LP tokens for a longer duration of time, relative to all liquidity providers and total liquidity for that pool.

This means that in a hypothetical situation where every single liquidity provider has equal pool share and commits for the exact same duration of time, no additional reward boost will be earned by any individual.

For a more detailed explanation:

Do note that the maximum lockup duration and boost multiplier has since been amended.

  • Maximum lockup period of 1 month

  • 2x boost

8. Does APR calculated take into account boosted rewards?

APR calculated is based on the annualized total return (base rewards + boost rewards) for the entire pool.

The return you receive on your liquidity may thus vary from this APR, depending on whether you choose to commit your LP tokens and your commitment period.

9. Why are my returns different from the stated APR?

The APR value stated is only an estimation on returns and cannot be guaranteed. Actual returns from liquidity provision on Demex may differ from this stated value.

The stated APR does not take into account the other participants' boosting activity in the pool. If everyone boosts to the maximum, the share of rewards is split as if there is no boost. For example, if there are 2 participants with both 50% of the pool and they both boosted to the maximum, the amount they will receive is still 50% of the rewards.

10. If I commit tokens for a set duration, and want to extend my commitment period, Will my new commitment period be added to my current commitment period, or will it override my previous period choice?

It will override your previous period choice.

Last updated