Ruby Exchange Sustainable Farming
Ruby Exchange sustainable farming allocates 100 million RUBY tokens, or 50% of the total supply, to Liquidity Providers (LPs) over five years.
Maintaining generous but sustainable yield farming rewards is critical to attracting liquidity and users to new DeFi projects and helps to ensure their long-term success. While the token emission model has been defined in advance, distribution parameters may be adjusted by the Ruby DAO if required, in response to evolving market and ecosystem conditions—helping to ensure that both LP earnings and project runway are optimized.
Ruby’s aim is to distribute 100 million RUBY tokens as liquidity rewards over five years while remaining profitable for yield farmers.
Rewards emissions are initially set at 40 million RUBY per year. It also reduces by a third every subsequent year and by around 69% in the final year:
- Year 1: 40,000,000 RUBY (3,333,333.33 RUBY per month)
- Year 2: 26,666,666.67 RUBY (2,222,222.22 RUBY per month)
- Year 3: 17,777,777.78 RUBY (1,481,481.48 RUBY per month)
- Year 4: 11,851,851.85 RUBY (987,654.32 RUBY per month)
- Year 5: 3,703,703.70 RUBY (306,172.84 RUBY per month)
However, in order to avoid the problems of rewards being too high or too low due to the inflexibility of a fixed model, the Ruby DAO will be able to make periodic adjustments to emissions, which may be informed by multiple factors including the market price of RUBY, the APYs available elsewhere in the DeFi space and the overall burn rate of the rewards program.
The rewards contract has a built-in time lock, and any updates will require 24 hours to activate, ensuring there is enough time to notify the community and for liquidity providers to react before changes take effect. Ruby DAO, the community vote directly on whether the rewards distribution adjusts, and if so, how, as well as other ecosystem decisions.
$RUBY Tokenomics At-A-Glance
- Total supply: 200 million RUBY.
- Initial circulating supply: 2.871 million RUBY (1.435%).
- Liquidity mining rewards: 100 million RUBY tokens (50%) over five years.
- USDT/USDC/USDP/Dai StableSwap 4Pool.
- Single-sided RUBY staking.
- 0.3% trading fees distributed to LPs (0.25%), RUBY stakers (0.04%), and burned (0.01%).
- Gemstone NFT user profile identifiers.
- NFT-permissioned rewards
- Trading fee reductions.
- LP yield boosts (coming soon).
- Lower LP early-exit penalties (coming soon).
- Reward parameters progressively are managed by the Ruby DAO.
Ruby Exchange has opted for a transparent tokenomics model. It also offers the opportunity for the DAO to update LP rewards according to changing market conditions and TVL. Avoiding the shortcomings of a completely fixed emissions schedule.
ABOUT Ruby Exchange
Ruby Exchange is a decentralized, non-custodial automated market maker (AMM) that allows users to trade with no gas fees on the SKALE Network’s Europa Chain. The protocol employs a Dual-DEX model. Both StableSwap 4Pool and an XY=K algorithm. Linked together using Ruby’s Intelligent Trade Router for optimal order execution and low slippage swaps. Financial NFTs, build into the ecosystem to provide a variety of user-specific benefits. It includes additional yield on LP positions or reductions in trading fees.
RESOURCES
RUBY ANNOUNCEMENT
