Protocol-Owned Liquidity (3,3)
A module called The Protocol Owned DEX Liquidity (PODL) uses half of PINJAM's Native fee rewards to purchase LP tokens.
To maintain good, continued liquidity and to essentially make fewer Tokens available over a long enough timeframe, all purchased PINJAM LP tokens are permanently locked. PODL provides a 5% premium on the LP price as a reward.
PODL is a mechanism to exit your LP position by selling your LP Tokens directly to the protocol; it is by no means required.
This is a win-win situation because you are benefiting the protocol and making money at the same time.
Vara Emissions Flywheel
As the PODL module locks LP tokens in the contract, it can also be used to farm the veDex emissions on Équilibre, as shown in step 1.
In step 2, the PODL will take those veDex emissions, lock them as veNFT for 4 years - which will then be used to vote for more veDex emissions to the LP pool in step 3. The cycle of steps 2 & 3 will constantly repeat, which will ensure consistent emissions of veDex Tokens on the PINJAM LP pool which will further incentivize more liquidity.
The partnered veDEX also stands to benefit by Pinjam taking more veDEX Tokens out of circulation by constantly locking it for 4 years, thus reducing sell pressure on the veDEX token.
This will then lead to a flywheel effect to increase liquidity for the Pinjam token and reducing sell pressure on the veDEX Token, ensuring stable rewards for users farming the veDEX Token on the PINJAM LP pool.
For those who have locked more than 10K Pinjam Ecosystem Tokens, Super PODL is an extra feature of PODL available for their use. Upon using the Super PODL feature to purchase all the available Native Token (Kava, Mantle, etc) treasury in one go, a one-week cooldown will be imposed on you.
To use PODL, you can go to the PODL page & approve the contract spending PINKAV-KAVA on your behalf.
Pick an amount of Native Token to buy and press the “Buy KAVA/MANTLE” button.
To use Super PODL, you can go to the PODL page & approve the contract spending the LP Tokens on your behalf.
Press the "I'M SUPER PODLING!" button.
The amount of Native Tokens that you can purchase is determined by the amount of locked Pinjam Tokens and the amount of Native Tokens currently available in Pinjam's treasury.
You will need to unstake your PINJAM LP tokens to enable selling to the treasury. You can see this number on the PODL page:
(“Based on your locked PINKAV, you can buy: x KAVA“)
The PODL button will be disabled if the buyable KAVA amount is lesser than 1 KAVA. The formula used to determine the amount of buyable KAVA is as such:
buyable KAVA = 25 * available KAVA in treasury * (your locked PINKAV / total locked PINKAV)
Given the available KAVA in the treasury refills as KAVA borrowing fees are paid.
You need enough unstaked PINKAV-KAVA to purchase the full treasury in order to Super PODL.
What this means is that: KAVA available in treasury/PINKAV-KAVA price (in KAVA)
On the PODL page, you may view the following PODL statistics:
- PINKAV/PINTLE owned by the treasury
- PINJAM LP Tokens owned by treasury
- Total Native Tokens sold