LP Rewards & Maturity

The Dexponent Protocol rewards Liquidity Providers (LPs) for their contributions through a structured and transparent system, ensuring alignment between participants and the protocol’s goals.

Rewards Structure

LPs earn rewards in $DXP, the protocol’s utility token. At the time of participation, LPs can choose a maturity period, from a few months to several years (i.e. 3 months, 6 months, or 12 months respectively) depending on the specifics of the Farm’s strategy.

A portion of the total rewards, up to 75%, is distributed upfront as an initial incentive. This provides immediate benefits while ensuring that most rewards remain tied to the maturity of the investment, encouraging sustained participation.

Maturity Periods and Early Exit

Each Farm’s strategy defines specific maturity periods. These periods are set by the Farm Owners and vary depending on the underlying asset, strategy complexity, and expected yield generation cycle. LPs can withdraw their principal liquidity at any time and take the difference in actual yield in the underlying input asset, or return equivalent amount of $DXP, however, to do so before the maturity period, they must return the initial $DXP rewards allocated at the time of staking.