We are pleased to announce Boson Protocol is launching a new liquidity mining campaign in partnership with Merkl, aimed at bolstering DEX liquidity for the BOSON token on both the Ethereum and Polygon networks.
Over the next three months, 350,000 BOSON will be distributed to liquidity providers in designated pools. This is a total rewards pool of approx $105,000 (as of 15th Oct) which will be distributed across 12 weekly periods.
This campaign is part of Boson Protocol’s broader strategy to enhance token liquidity and incentivize community participation.
The program will be launched on 21st October 2024 at 15:00 UTC.
Program Details
- Objective: Incentivize liquidity provision for BOSON tokens across Ethereum and Polygon, and make it as convenient as possible for community members to acquire $BOSON tokens.
- Total Rewards:
- Duration: 3 months, with rewards distributed in weekly epochs (Start Date: 21st October 2024, End Date: 13th January 2025)
- Reward Allocation:
- 40% of rewards to BOSON liquidity
- 40% of rewards to WETH OR USDT liquidity
- 20% of rewards to liquidity fee earners
Eligibility Criteria
- Rewards are only issued when liquidity is within the specified price range set by the liquidity provider.
- Project-controlled wallets and related party wallets will not be eligible for rewards, ensuring fairness and transparency in the distribution.
- If you started providing liquidity in the Uniswap pool before the Merkl campaign, and your positions are still active and meet the parameters, you will be eligible to earn rewards when they are distributed. There is no need to recalibrate or exit and re-enter the liquidity pool with your position(s).
What are liquidity pools?
Unlike a centralized exchange where buyers and sellers are matched by an order book, decentralized exchanges like Uniswap incentivize users to deposit their assets in a liquidity pool, where they are rewarded with trading fees. The glossary on Gemini exchange explains it pretty well:
“A liquidity pool is a crowdsourced pool of cryptocurrencies or tokens locked in a smart contract that is used to facilitate trades between the assets on a decentralized exchange (DEX). Instead of traditional markets of buyers and sellers, many decentralized finance (DeFi) platforms use automated market makers (AMMs), which allow digital assets to be traded in an automatic and permissionless manner through the use of liquidity pools.”
It is worth reading up about how liquidity pools work before committing funds to them so you make yourself aware of the concept of impermanent loss, which can happen as the two assets fluctuate in value against each other. You can read more about them here.
What is liquidity mining?
In many cases, liquidity providers have the chance to receive more than just trading fees from their provision – and that is exactly what the Boson x Merkl Liquidity Mining program offers. When someone supplies the BOSON/WETH pool or BOSON/USDT with liquidity, they receive Liquidity Provider (LP) NFTs in exchange for their position. As compensation for locking up their tokens and thus providing liquidity, participants earn rewards in the form of additional BOSON tokens. The rewards are typically distributed proportionally based on the amount of liquidity each participant contributes to the pool. We will explain in more detail below.
Why Increased Liquidity Matters for Boson?
- Broadening access to the BOSON token: A deeper liquidity pool means it becomes easier for community members to buy tokens for network usage, contributing to greater access and sustainability for the BOSON token.
- Community Engagement: Liquidity mining fosters a sense of community and participation among BOSON token holders.
- Additional Earnings for Liquidity Providers: The fee-sharing mechanism built into the reward structure offers liquidity providers another stream of earnings, incentivizing long-term engagement.
- Expansion Across Multiple Chains: By targeting liquidity on both Ethereum (BOSON/WETH) and Polygon (BOSON/USDT), Boson is advancing its multi-chain approach, making BOSON tokens more accessible and usable across different platforms.
What’s Merkl Liquidity Mining?
BOSON will use Merkl (https://merkl.angle.money/) for our liquidity mining incentives. Merkl is an innovative platform that offers various yield opportunities in DeFi by providing incentives through Incentive Providers (IPs) for liquidity providers, lenders, and borrowers. It allows users to earn rewards by participating in different campaigns and protocols.
How does the Boson x Merkl campaign work?
Our Merkl pool will be reseeded every Monday with updated weights to ensure that BOSON has ample liquidity. Each week 29,166 BOSON (20,833 BOSON for the BOSON/WETH pool and 8,333 BOSON for the BOSON/USDT pool) will be rewarded to liquidity mining on the most liquid pair.
For a given Uniswap pool with two tokens (A and B), the Merkl script looks into the swaps that took place on the pool during the period for which it is ran and computes a reward score for each position according to:
- the fees earned by the position during the period, which represent the liquidity of the position used by the pool.
- the amount of token A held by the position during swaps on the pool compared to the total amount of A in the pool
- the amount of token B held by the position during swaps on the pool compared to the total amount of token B in the pool
In our case, A is BOSON and B is WETH/USDT.
Reward distribution for a position in a pool during a specified time period is as fellows:
wf is the percentage of rewards allocated based on fees earned.
wA is the percentage of rewards based on a user’s share of the total supply of A in the pool.
wB is the percentage of rewards based on a user’s share of the total supply of B in the pool.
BOSON Liquidity Mining Weights
| Week | Weekly Rewards | Weights (BOSON:WETH:FEE / BOSON:USDT:FEE) |
| Week1: Oct21-Oct27 | 28,291 | 40:40:20 |
Weights for the subsequent weeks will be updated.
Specific risks that you may want to consider include:
- Impermanent loss: Providing Liquidity on Uniswap can result in impermanent loss
- Gas costs: Participating in this program can result in high gas cost
- No guaranteed APY: APY (Annual Percentage Yield), the rate of return of your investment, varies based on the amount of liquidity committed to the program
- Merkl Reward distribution and calculation: there can be risks associated with rewards being delayed or miscalculated.
How to get started?
You can visit the Boson Liquidity Mining Campaigns on Merkl here:
Click under “Start earning now: Deposit” under the campaign title, the UniswapV3 link will take you straight to the Uniswap liquidity pool. Then click the “Add liquidity” button on the right (see screenshots below). Note: Please make sure that you select the proper chain for the token pair to appear appropriately.
To receive rewards, you can also provide liquidity directly to the Uniswap pools through the provided links below. Click “Add liquidity” on the right
- Ethereum (BOSON/WETH 0.3% fee pair on Uniswap v3 link here)
- Polygon (BOSON/USDT 0.3% fee pair on Uniswap v3 link here)
The main choices you need to make when adding liquidity are:
- how tight should the position’s range be
- what should the split between the two tokens be
For example, a tight range will virtually provide more liquidity and earn more fees and rewards. However, it has more chances to become out-of-range and suffer from impermanent loss.
Merkl comes with an anti DoS filter which means that positions with less than $20 of liquidity are not eligible for incentives.
Once you have provided more than $20 of liquidity, no additional steps are required to start receiving your rewards. You will be able to claim them directly from the Merkl page. You will not need to stake your tokens anywhere else. If you were providing liquidity on a pool before the incentive was created on Merkl, you will also be eligible to claim your rewards when they are distributed. You can track your active positions and rewards through the Merkl user dashboard.
See How to get started on Merkl Guide here for more information.
Legal Notice
The Boson Liquidity Mining Program (the “Program”) is a discretionary grant program by BVoucher Limited. We retain the right to cancel or modify the terms of use of the app at any time, in our sole discretion.
We are not able to issue any rewards to persons who are on any sanction lists maintained by the United Nations, Singapore, the EU, UK or the US or who are in a jurisdiction sanctioned by the same. The payment of rewards to you shall not render you our employee, worker, agent or partner or imply a similar relationship. We make no representation regarding any tax obligations (“Tax”) arising out of or connected to your participation, including the receipt of any rewards, and at no time shall we be liable for payment of the same. You are responsible for all Tax payable in connection therewith.
By participating in this Program, you warrant that you are of legal age and that you will comply with any laws applicable to you and not engage in any illegal activities. Any conduct by you that appears to be unlawful, malicious, or criminal in nature will immediately disqualify you from use.
None of the information available in this Program, or made otherwise available to you in relation to its use, constitutes any legal, tax, financial or other advice. Where in doubt as to the action you should take, please consult your own legal, financial, tax or other professional advisors.
You acknowledge and agree that you are using a third-party application, Merkl App (https://app.merkl.xyz/). Any activities you engage in with, or services you receive from Merkl App is between you and Merkl App directly. The conditions of service provisions, if any, shall be governed by the applicable contractual provisions between you and Merkl App. We expressly disclaim any and all warranties, whether express or implied, including but not limited to warranties of accuracy, availability, reliability, security, fitness for a particular purpose, or performance. We shall not be liable for any issues arising from the use of Merkl App.