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. While LPs can claim their principal at any time, rewards can only be redeemed once the Farm’s strategy terms are met or reach maturity. Maturity periods are typically defined by the farm owners. At the time of Farm’s Token purchase, a portion of the future yield at maturity is provided to the LP as an immediate reward. While locking assets, certain strategies will offer LP's the option to choose maturity periods, which can range from a few months to several years, depending on the specifics of the associated strategy.

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.