Spark Points Earning Program

Description

Sprk Points Earning Program Introduction: The Sprk Points program is designed to reward liquidity providers and traders on the Sprk.fi protocol. Participants earn Sprk Points based on their contributions to the order book, promoting liquidity, and actively engaging in trades. These points can be redeemed for various benefits within the Sprk.fi ecosystem.

Liquidity Provision Program:

Formula:

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LP_Spark_Points = (Liquidity_USDC * Days * LP_Weight) / X

Example: Suppose a user provides $X in USDC liquidity for 30 days with an LP_Weight of Y. The Spark Points calculation would be:

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LP_Spark_Points = ($X * Y * Z) / N = X Spark Points

Trading Program:

Formula:

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Trader_Spark_Points = (Trading_Volume * Trades * Trader_Weight) / 1000

Example: If a trader executes $X in trading volume with a frequency of 20 trades and a Trader_Weight of Y, the Spark Points calculation would be:

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Trader_Spark_Points = ($X * Y * N) / 1000 = X Spark Points

Market Program:

Formula:

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Market_Spark_Points = (Total_Liquidity * Market_Weight) / 1000

Example: Suppose the total liquidity across supported pairs reaches $X with a Market_Weight of N. The Spark Points calculation for the Market Program would be:

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Market_Spark_Points = ($X * N) / 1000 = X Spark Points

Program Description:

In addition to liquidity provision and trading, the Spark Points Earning Program introduces a Market Program to incentivize overall market health. Users earn Spark Points based on the total liquidity across supported pairs, encouraging the growth and stability of the ecosystem.

Market Program:

  • Users earn Spark Points based on the total liquidity in the market.

  • Market_Weight determines the weight assigned to the overall market health, influencing Spark Points earnings.

Conversion to Spark and Fuel Tokens:

  • Users can convert Spark Points to Spark Tokens at a some ratio.

  • 1 Spark Point = X Spark Token.

  • Users can further convert Spark Tokens to Fuel Tokens at a rate of X Spark Tokens for 1 Fuel Token.

These conversion mechanisms provide flexibility and additional benefits for users within the ecosystem.

FAQs:

  1. How are Spark Points calculated for liquidity provision?

    • Spark Points for liquidity provision are calculated using a formula that considers the user's contribution relative to the total liquidity in the order book.

  2. What assets are eligible for earning Spark Points?

    • Spark Points can be earned for liquidity provision and trading in USDะก.

  3. How can Spark Points be redeemed?

    • Users can exchange Spark Points for Spark Tokens, which can be redeemed for project tokens, trading fee discounts, or access to exclusive features.

  4. What determines the weighting factor for assets?

    • The weighting factor is predetermined based on the asset's importance and demand within the Sprk.fi ecosystem.

  5. How frequently are Spark Points updated?

    • Spark Points are updated in real-time, reflecting users' contributions and activities on the Sprk.fi platform.

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