Reward Distribution
Liquidity Provider Rewards Liqfinity uses a proportional pool model to distribute rewards to liquidity providers.
How It Works
Proportional Ownership: Rewards are based on two factors:
Your Share of the Pool – If the pool is $1,000,000 and you contribute $100,000, you own 10%.
Your Tier – Higher referral tiers unlock a bigger portion of the pool’s hourly fee distribution, with only Diamond-tier users receiving the full 90%.
Fee Distribution:
Up to 90% of all hourly base fees are allocated to liquidity providers.
Any unallocated portion (when users are not Diamond-tier) is redirected into the platform treasury as a backup reserve.
Example:
The platform generates $100,000 in hourly fees.
A Diamond-tier user with 10% of the pool earns $9,000.
A lower-tier user with the same 10% share would earn less, since only part of the 90% pool is unlocked for them. The unused portion is redirected to the treasury.
This ensures rewards are fairly proportional to both contribution and tier, while unused fees strengthen the platform’s long-term sustainability.
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