SODAX Pool rewards will initially be funded from legacy liquidity incentive funds that have been migrated from the ICON Network.
🔍 These funds were previously directed toward the Balanced Savings Rate and ICX/sICX liquidity providers. As part of the transition to the SODAX ecosystem, these legacy incentive funds have been migrated to support liquidity providers on SODAX Pool. For more background, see Balanced’s article on the end of legacy rewards.
The Initial Rewards Phase
During the initial phase of SODAX Pool, the accumulated legacy funds are being distributed to liquidity providers who supply SODA and xSODA to the SODA/xSODA pool.
The team is targeting an estimated reward APR of roughly 5-15% for liquidity providers during this phase, and will distribute the migrated funds accordingly to maintain this range.
What Happens After the Initial Phase?
As the initial fund is distributed and effective liquidity within the SODAX system grows, a judgement call will follow on if, and how, additional stimulus may be provided for the following phase. The goal is to ensure a sustainable reward structure that supports long-term liquidity provision as the protocol matures.
💡 Rewards may evolve over time. As the SODAX system generates more fee revenue from its growing activity, the reward basis will be reviewed to determine the best approach for sustaining attractive returns for liquidity providers.
Need Help?
If you have any further questions about pool rewards or need assistance, visit our Support Center for more articles and resources, or contact our support team via the button in the bottom right.