🛬The Approach

Empowering Liquidity Providers with Sustainable Emissions on PerfectSwap

PerfectSwap prioritizes the well-being and prosperity of its Liquidity Providers (LPs) by offering them a unique and sustainable rewards structure. In contrast to many other platforms, PerfectSwap has engineered a system that distributes rewards in a way that not only benefits LPs but also contributes to the sustainability of the ecosystem.

Here's how it works:

Rewards are partially vested using a ratio that is, by default, set to 70/30 but adjusts based on total supply within a specific range.

1. 70% in $PRFCT Tokens: When LPs contribute to liquidity pools on PerfectSwap, they are rewarded with 70% of their earnings in the native token, $PRFCT. This allocation ensures that LPs receive a substantial portion of their rewards in a readily tradable and versatile asset. $PRFCT can be used for a variety of purposes, including trading, staking, or participating in governance decisions within the PerfectSwap ecosystem.

2. 30% in veNFT, $vePRFCT: The remaining 30% of LP rewards is distributed in the form of veNFT tokens known as $vePRFCT. These tokens are vested for a duration of one week. This means that LPs receive this portion of their rewards but must hold them in a time-locked state for a brief period before gaining full control. This time-lock mechanism introduces a key element of sustainability to the emissions model.

Creating Sustainable Emissions:

The decision to allocate a portion of LP rewards in the form of vested veNFT tokens serves several vital purposes:

• Reward Stewardship: By vesting some of the rewards for a week, LPs are encouraged to remain engaged with the PerfectSwap ecosystem over a longer horizon. This mechanism promotes commitment and participation within the platform.

• Stability and Liquidity: The one-week vesting period helps maintain a level of stability and liquidity within the ecosystem. It prevents sudden and large-scale reward claims that could potentially disrupt market dynamics.

• Governance Engagement: Holding veNFT tokens allows LPs to actively participate in governance decisions. This involvement strengthens the decentralization and democratic governance structure of PerfectSwap.

• Long-Term Sustainability: Sustainable emissions are crucial for the long-term viability of any decentralized exchange. By incorporating vesting periods, PerfectSwap ensures that rewards are not only attractive to LPs but also conducive to the continued growth and stability of the platform.

PerfectSwap's rewards distribution mechanism strikes a balance between immediate gratification and long-term commitment. By providing a significant portion of the rewards in vested tokens, we're creating a defense to inflationary emissions that most ve(3,3)'s struggle with.