Inception Farming Epoch is ending what is next

As you may know, our Inception Epoch for farming is closing out today. Time to place your Liquidity based on the next epoch rewards. We wanted to provide some insight on how things will work moving into the more standard Epoch format. We want everyone to be aware that they need to deposit their LPTs prior to the beginning of the new epoch so as to be eligible for Farming.

In this blog, our aim is to

1) Inform you to understand that you need to select with your liquidity your Farms for the next epoch ASAP.

and

2) Clearly explain how things will work going forward with the overall rewards.

Important notice: Be careful, Stablecoin Farms where subject to a vote in discord. They are canceled for epoch staring tomorrow. This means at minimum until Monday 25.4. 21:45 UTC no way to gain on these farms!

For a recap Inception Farming Epoch (IFE) is a manual period from Tuesday 12th of April 10:40 UTC (from launch) and ends Wednesday 20th April 2022 at 21:45 UTC. This was clearly outlined in our earlier blog here. During the period, the platform is taking multiple snapshots of the deposited LPTs, these will be used to determine rewards based on the average amount of liquidity the user provided during the IFE to create a baseline for the user’s reward eligibility and proportion. Everybody who provided at least 1000 ADA equivalent worth of liquidity overall in all pools and pairs in average of the snapshots will be eligible for a bonus.

A later blog will be specifically focused on Yield Farming Rewards of IFE, with a number of detailed examples (using real liquidity pools) so it is clear and transparent how rewards will be calculated for IFE. To do this, we need to manually review the snapshots and do the calculations. You will see your rewards in the UI once calculations are complete. These WRT tokens will be subject to vesting so you will not have them at your direct disposal right away.

Staking rewards

The IFE (Inception Epoch) ran for eight days, just shy of two Cardano epochs. All liquidity pools with ADA to token pairs are eligible for staking rewards. The staking rewards will get calculated on a per liquidity pool basis, based on the amount of ADA provided in liquidity pools. The staking rewards will get added back into the said pool, which will increase the value of the Rider’s held Liquidity Pool Tokens (LPTs).

Anyone who provided liquidity to an ADA paired pool during IFE was also earning staking rewards. The staking rewards are still subject to Cardano staking mechanics. So, if you provided ADA in epoch 332, it will affect staking rewards distributed randomly during epoch 336. However, you are just part of all liquidity providers, so ADA that was already in the pool will influence the current staking rewards and increase the value of LPTs held by you. The only exception is providing liquidity to a new ADA paired pool. Due to how staking on Cardano works for such a pool, you can expect the first staking rewards after four epochs. If you withdraw your liquidity sooner, you will lose out on the staking rewards.

TLDR important notice: When you provide liquidity to a new ADA-token pool you can expect the first staking rewards in 4 epochs time. If you withdraw your liquidity sooner you will lose out on rewards.

Rewards earned from the swapping fees

Trading/swap fees earned during the IFE were calculated at a rate of 0.3%. These swap fees have been deposited into the relevant LP’s and therefore increased the value of a Rider’s held LPT’s for that pool.

So what is up next, well a more structured form of epoch and reward period. We call this “Regular Farming Epochs” (“RFE”).

Regular Farming Epochs (RFE)

• This period will last from Wednesday 20nd of April 2022 21:46 UTC till 15th of May 2022 21:45 UTC. It will be divided into 5 epochs, each lasting 5 days and mirroring Cardano’s regular staking epochs.
• During each 5-epoch period, WRT rewards will be allocated proportionally to everyone who provides liquidity and keeps their LPTs deposited in any of the available farms for the entire epoch. Current farm rewards can be seen in the UI. Depositing of LPTs is done in the UI part of the app under the “Farming” tab.
• These rewards will be calculated solely on the proportion of the liquidity of the pools the particular liquidity provider holds, as represented by the LPTs bound to the holder’s wallet.
• To ensure that rewards are allocated fairly (and to prevent anyone from ‘gaming the system’), only the minimum amount of LPTs deposited by a liquidity provider over the course of a 5-day epoch will be the baseline for calculating their rewards.

(Example: John provides 5,000ADA worth of liquidity before the start of the third RFE and deposits his LPTs in a farm. On the second day of the third epoch, he withdraws 2,000 ADA worth of his LPTs from the farm and subsequently removes 2,000 ADA worth of his liquidity. The next day, he realizes he doesn’t need the funds and deposits the liquidity back in the pool and also deposits the LPTs in the Farm. This means that for this third RFE he will be rewarded only for 3,000 ADA worth of liquidity as this was his minimum during that epoch.)

• This means if you do not have any liquidity in a pool and deposited LPTs before Wednesday 20nd of April 2022 21:45 UTC you will not get WRT rewards for the full next 5 days after, or the end of the next complete RFE.

So what if I come in the middle of a 5-day epoch … will I get some rewards?

No — you have to have your LPTs deposited before the 5-day epoch starts in order to be eligible. If you withdraw your farmed LPTs and/ or withdraw liquidity later in the epoch, you will lower your minimum deposit, and this lower amount will be used as the basis for reward calculation. The minimum deposit for that epoch is shown in the UI as “My Effective Liquidity”.

There was no TGE nor a public sale; how will I receive the WingRiders token?

Your wallet address will be stored and you will receive access to a claim-drop to unlock tokens after the TGE (as this might impact the first-day liquidity on the market we reserve the right to delay this by a short period of time — this will be communicated in a transparent and timely manner.)

Why can I not see the price or monetary value of WingRiders token?

As the platform governance token is not in market circulation there cannot be any price communicated. Any napkin math experiments you want to do from our TVL, total number of tokens in reference to our competitor, and other parameters to derive a number we cannot comment on, or validate. As with all DeFi protocols, do your own math, check everything twice and make your own decisions.WingRiders team, mods, or any other team member cannot provide any financial advice, only technical advice.

Are there other rewards?

Currently, we cannot commit to any special rewards in the form of other project tokens or NFTs on top of the WingRiders promise of future delivery of the governance token. We are in intense discussions with many partners on potential rewards so keep an eye on your farm and Twitter and Discord for upcoming announcements.

How do I see my rewards?
If the farm yields rewards other than WRT, the allocated reward will appear shortly after the end of the RFE, in the user interface (it may take several days for the first epoch). For farms yielding WRT, this may be delayed even longer. There the condition is that WingRiders finalize the development of the governance token vesting contracts and test them for their security.

How do I claim rewards?

WRT will be locked for the time being and they will be unlocked shortly after the platform TGE (Token Generation Event) and the first day of market trading. TGE is currently scheduled for Q2 2022. If the farm also yields other rewards, these should be available to claim right after they appear in the WR user interface. Please allow some time for calculation and verification for these rewards.

Which liquidity pools are eligible for farming rewards?

All farms that you see in the “Farming” section of the interface are eligible for farming rewards. If there is no farm listed there is no farming reward for that particular liquidity pool. WingRiders team is not responsible for any mistakes made by users who deposit in farms “by mistake”.

Which liquidity pools are eligible for WingRiders token rewards?

All farms are eligible for WingRiders token rewards. If, in the future, there are farms added that reward liquidity providers with only something other than WRT, these will be clearly marked. Please review all screens carefully and be sure that you understand the rewards of each farm before depositing your lp tokens to any farm.

Why is some of the aggregated data not displayed in the UI?

Some of the aggregate data is not displayed right away. All missing data will be enabled in the coming days (exemption is APR). If you have any questions, please ask on Discord.

Peace, and good flying!

Disclaimer:
No direct or future profits nor any rights to any funds or financial compensations are incorporated into WingRider tokens by design. Purchasing or selling tokens from or to other individuals involves significant risks and potential for financial losses. The WingRiders tokens will not be investment or financial instruments, nor do they constitute any form of electronic money or payment service.