Pickle launched a liquidity mining aggregator, a simple understanding of its income strategy

蓝狐笔记

2020-09-16 17:22 (UTC+8)

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pJars (canned cucumber) is an optimizer for aggregate mining, similar to YFI's yVault, its sole purpose is to bring the maximum benefit to users.

Editor's Note: This article comes fromBlue Fox Notes (ID: lanhubiji), reprinted by Odaily with authorization.

Pickle launched PickleJars (canned cucumbers, or pJars for short) yesterday. That is, the previous Blue Fox Notes article "

Pickle Cucumber and Mining Micro-Creativity

The pVault mentioned in ". Its code has not been audited at present, and most of it copied YFI's yVault, and their contract logic is basically similar.

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What are Pickle's Canned Cucumbers?

pJars (canned cucumber) is an optimizer for aggregate mining, similar to YFI's yVault, its sole purpose is to bring the maximum benefit to users. When a user deposits a certain liquidity pool LP token into a cucumber jar (pJar, also known as the token pool), he has the opportunity to obtain more of the token.

The main process is as follows:

*Users deposit their LP tokens (liquid equity tokens, such as sCRV) into pJar (canned cucumbers), and then receive pAsset;

*The assets deposited by the user will be deployed in the alpha-seeking strategy, which will generate income;

*Proceeds are distributed in the token pool, which means pAsset will increase in value.

In addition, during the operation, costs will be incurred. This part of the fee will be allocated to governance and PICKLE holders.

Pickle's canned cucumbers allow it to capture fee gains. Its fee structure is similar to that of yVault, including governance fees and exit fees, and the exit fee is 0.5%.

*3% of the fee is allocated to governance to subsidize gas costs, compared to 5% for yVault;

*0.5% of the fee is allocated to function callers as a reward for triggering the strategy

However, for the repurchase and destruction of PICKLE tokens, the Pickle community put forward a new proposal: Someone proposed to distribute this part of the fee income directly to users who provide liquidity for the ETH/PICKLE token pool.

Where does the benefit come from?

Strategies for Pickling Canned Cucumbers

Where does the benefit come from?

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For the nascent projects of DeFi mining, the biggest problem it faces is the "mining, selling and withdrawing" of mining participants, which is inevitable. This will cause the project's own tokens to face a lot of selling pressure. If its tokens cannot maintain a relatively stable value, the entire project will be difficult to sustain.