Campfire Whitepaper
Search…
THE PROTOCOL
IMPORTANT INFO
Liquidity Mining
Introduction
We understand that for DeFi to succeed, we need sustainable liquidity. Liquidity mining is a way for us to offer a way for investors to earn CAMPFIRE while playing and investing in our ecosystem. At its core, FirePlow is a passive income generator that incentivizes you in CAMPFIRE to stake LP (liquidity provider) tokens. You’ll be gaining CAMPFIRE tokens to use in our dApp ecosystem for rare NFTs, IDO launches, swaps and much more JUST by staking LP tokens! It’s a powerful part of our ecosystem, and really fun.
What is Liquidity Mining?
Liquidity mining is the focus of incentivizing the injection of liquidity (example: CAMPFIRE-BNB) in the protocol in exchange for distributing among liquidity providers a series of tokens (in this case $CAMPFIRE) that give access to the governance & utility of the project. The awarded tokens can also be traded on or off the platform, or simply do HODL of them, and receive better earnings with the increase in the value of said tokens received.
The word liquidity comes because it is the injection of liquidity. This injection of liquidity by investors then allows them to mine tokens that are rewarded to those who participate in the program. Liquidity mining has been shown to be a very successful method of attracting users to a DeFi platform.
Liquidity mining programs are inherently intensive in emissions, so Campfire will be taking a sustainable approach. We have designed a liquidity mining program that is innovative, flexible and easy to understand which rewards loyal & early adopters.
Issuance Schedule
The issuance of CAMPFIRE as rewards for staking LP tokens in FirePlow is scheduled to change during each consecutive period of time, which we refer to as an X. Each X is Y blocks on the Binance Smart Chain (BSC), and the length of each X depends on the average block speed on BSC. X were calculated to Y blocks so that each X would equal one week assuming a speed of 3 seconds per block on the Binance Smart Chain. However, if block speeds are longer than 3 seconds per block on average, an X will last longer than a week, and inversely, if block speeds are less than35 seconds per block on average, then an X would last less than one week.
Month 1
- (Week 1): 256x multiplier ~25,000% APR - 98% locked upon claiming rewards
- (Week 2): 128x multiplier ~12,500% APR - 96% locked upon claiming rewards
- (Week 3): 96x multiplier, ~9375% APR - 94% locked upon claiming rewards
- (Week 4): 64x multiplier, ~6250% APR - 92% locked upon claiming rewards
Month 2
- (Week 5): 56x multiplier, ~5460% APR - 90% locked upon claiming rewards
- (Week 6): 48x multiplier, ~4685% APR - 88% locked upon claiming rewards
- (Week 7): 40x multiplier, ~3900% APR - 86% locked upon claiming rewards
- (Week 8): 32x multiplier, ~3125% APR - 84% locked upon claiming rewards
Month 3
- (Week 9): 28x multiplier, ~2730% APR - 82% locked upon claiming rewards
- (Week 10): 24x multiplier, ~2340% APR 80% locked upon claiming rewards
- (Week 11): 20x multiplier, ~1950% APR - 78% locked upon claiming rewards
- (Week 12): 16x multiplier, ~1560% APR - 76% locked upon claiming rewards
Month 4
- (Week 13): 15x multiplier, ~1460% APR - 72% locked upon claiming rewards
- (Week 14): 14x multiplier, ~1365% APR - 70% locked upon claiming rewards
- (Week 15): 13x multiplier, ~1265% APR - 68% locked upon claiming rewards
- (Week 16): 12x multiplier, ~1170% APR - 66% locked upon claiming rewards
Month 5
- (Week 17): 11x multiplier, ~1070% APR - 64% locked upon claiming rewards
- (Week 18): 10x multiplier, ~975% APR - 62% locked upon claiming rewards
- (Week 19): 9x multiplier, ~875% APR - 60% locked upon claiming rewards
- (Week 20): 8x multiplier, ~780% APR - 58% locked upon claiming rewards
Month 6 - 9
- Etc
*Listed multipliers are spread out across all pools. Visit the liquidity mining platform for pool-specific emission rates.
Visit the Binance Smart Chain Explorer to see what the current block is and the current block speed (latency). Please note that block speed fluctuates and should be viewed on an average (i.e. daily or weekly basis) when trying to plan your liquidity mining strategies.
Locking Model
A portion of the $CAMPFIRE earned in the liquidity mining pools can be harvested immediately (i.e. are unlocked and immediately usable), while the rest are dispersed deep underground (locked). These locked $CAMPFIRE tokens will slowly work their way upward and will be rewarded to the owners in time, but until unlocked cannot be used in any way (i.e. cannot be used for staking, providing liquidity, governance votes or any other in game transaction). Once claimed, locked tokens remain locked until the end of week 50 at which point such locked $CAMPFIRE tokens will begin to unlock ratably over the next year.
To balance the amazing multipliers that early adopters that provide liquidity, via the liquidity mining program receive, our tokenomics include a locking model on the $CAMPFIRE tokens received from providing liquidity. The calculation of what portion of your rewards is locked vs unlocked only takes effect once you click the CLAIM button. Whenever rewards are CLAIMED from the liquidity mining pools, a portion of the rewards will be unlocked (i.e. immediately usable to trade, buy, sell, stake in the bank) and the remainder will be locked. The allocation of $CAMPFIRE between unlocked and locked amounts will depend in which week the rewards are CLAIMED, not on when they are earned or staked.
Starting the first week, 5% of any rewards claimed from the liquidity mining pools were unlocked and immediately accessible and 98% of rewards claimed from the liquidity mining pools were locked. The percentage of rewards CLAIMED from the liquidity mining pools that are unlocked will increase by 2% every week until after week 50 where any rewards claimed thereafter will be 100% unlocked. This 2% increase of unlocked rewards per week applies only to unclaimed rewards (i.e. once claimed, locked rewards do not benefit from this increasing unlock rate per week and will remain locked until after week 50 when they will start to unlock)
So, for example, liquidity mining rewards claimed during week 1 will be 2% unlocked, 98% locked; during week 2 will be 4% unlocked, 96% locked; during week 3 will be 6% unlocked, 94% locked, and so on, until after week 50, when no more locking of staked rewards will occur for newly claimed liquidity mining rewards.
Locking Model - Simplified Examples
Below are two simplified examples that show how the locking model works. For the sake of simplicity, the examples assume no reinvestment of unlocked claimed rewards into additional LP positions and that a player earned 100 Billion $CAMPFIRE in liquidity mining rewards during week 1, 50 Billion $CAMPFIRE in week 2 and so on to reflect the reduced $CAMPFIRE emission per week. In both scenarios, 301.6 Billion $CAMPFIRE is earned, but the amount unlocked versus locked is different. This locking model provides players the opportunity to choose a strategy that suits their style and risk appetite.
Illustrative Example A: Rewards earned during each week are claimed during each week (and not reinvested).
- 10 week Summary:
- Total unlocked $CAMPFIRE: 29.8 Billion $CAMPFIRE
- Total locked $CAMPFIRE: 271.8 Billion $CAMPFIRE (inaccessible until after week 50 unless unlocked earlier via Pyromaniac NFTs)
- Total rewards: 301.6 Billion $CAMPFIRE
- Lower unlocked $CAMPFIRE over the sample period, but allows for use of and potential recompounding/reinvestment of unlocked $CAMPFIRE during sample period, which could result in more unlocked $CAMPFIRE than not claiming over the same period depending on what you choose to do with such unlocked claimed rewards. The choice is yours!
Example B: Rewards are not claimed until the end of week 10.
- 10 week Summary:
- Total unlocked $CAMPFIRE: 69.4 Billion $CAMPFIRE
- Total locked $CAMPFIRE: 232.2 Billion $CAMPFIRE (inaccessible until after week 51 unless unlocked earlier via Pyromaniac NFTs)
- Total rewards: 301.6 Billion $CAMPFIRE
- Higher unlocked $CAMPFIRE count by the end of sample period, but unable to use or compound unlocked $CAMPFIRE during sample period.
Locking Model - Early Unlocking with Hero NFTs
One amazing and unique feature of Campfire that sets us apart from any other DeFi protocol out there today is the ability for your Pyromaniac Camp Smokey NFTs to mine locked CAMPFIRE tokens, unlocking them early.
Locking Model - Rationale
This locking model helps the project retain value for the long-term, and ensures only those who see the long-term vision of Campfire jump in and earn the maximized rewards available to early adopters. Further, this locking model both balances the rewards needed to attract early providers of the necessary liquidity against the long term interest of a sustainable price for an ecosystem token and concurrently provides early LP stakers a strategic choice to claim early and compound their staking rewards at the cost of locking more of their $CAMPFIRE rewards until after week 50 (unless unlocked earlier by Pyromaniac NFTs) or to delay claiming until a week with a higher unlock percentage at an opportunity cost of not being able to utilize any liquidity mining rewards in the meantime.
As noted above, once claimed, locked tokens remain locked until the end of the 50th week at which point such locked $CAMPFIRE will begin to unlock ratably over the next year. After the end of week 50 and we reach the point where 100% of newly claimed liquidity mining rewards will be unlocked, all locked tokens previously claimed during the prior 50 weeks not otherwise unlocked through NFT mining quests will begin to unlock ratably over the year.
LP Mining Deposit and Withdrawal Fees
To protect against flash loans and pump and dumps, we do implement deposit & withdrawal fees for withdrawing and depositing LP tokens. The fees are listed below.
Deposit Fees
- 0.5% deposit fe for deposits over $5,000 in value.
- 1% deposit fee for deposits over $10,000 in value.
Withdrawal Fees
- 0.01% fee if a user withdraws after 4 Weeks
- 0.25% fee if a user withdraws after 2 Weeks but before 4 Weeks
- 0.5% fee if a user withdraws after 5 days but before 2 Weeks
- 1% fee if a user withdraws under 5 days. *
- 2% fee if a user withdraws under 3 days. *
- 4% fee if a user withdraws under 24 hours. *
- 10% fee if a user withdraws under 1 hour. *
- 66% slashing fee if a user withdraws during the same block.
*Days/Hours listed assume a 3 seconds per block speed during such period and will depend on Binance Smart Chain speed.
List of incentivized liquidity pairs & pools
Liquidity Pairs
Rewards Allocation
CAMPFIRE <> BNB
75%
CAMPFIRE <> BUSD
12.5%
CAMPFIRE <> CAKE
12.5%
As the protocol grows, we plan on launching more strategic partnership pools.
Last modified 5mo ago