What are yield farms
Why LPing is worth it
Last updated
Why LPing is worth it
Last updated
Taraswap is using The module to incentivise LPers.
The Uniswap v3-staker module is a tool that incentivizes liquidity providers (LPs) to add liquidity to specific Uniswap v3 pools by offering additional rewards on top of trading fees.
What is the v3-staker Module?
• It’s a liquidity mining program designed for Uniswap v3.
• Projects can create incentive campaigns to reward LPs who provide liquidity to certain pools.
• Rewards are distributed in the form of tokens (e.g., a project’s native token or stablecoins), directly on-chain.
1. Earn Extra Rewards:
• In addition to earning trading fees, LPs also get extra rewards from the staking campaign.
• Example: A token project rewards LPs with their token for providing liquidity in an ETH/TOKEN pool.
2. Boosts Yield:
• Combining trading fees with staking rewards can significantly increase your overall return on investment (ROI).
3. Flexibility:
• You can choose the price range to provide liquidity and still qualify for rewards.
• The module tracks both your liquidity and your active range.
4. Encourages Participation:
• New projects often use this to bootstrap liquidity, giving LPs opportunities to earn high rewards early on.
5. No Lock-Up:
• Unlike traditional staking, you can adjust or withdraw your liquidity at any time without penalties.
• Rewards are prorated based on the time your liquidity stays active.
• Gas Costs: Adding liquidity, staking, and claiming rewards involve gas fees.
• Reward Token Volatility: The additional rewards might lose value if the token price drops.
• Impermanent Loss: Providing liquidity still carries the risk of impermanent loss. article is great to understand IL.
We have an FAQ page at that explains in detail what and why does our Incentive Program add to the liquidity landscape.