Rewards is a part of the incentive program at the Sienna protocol. When you provide liquidity to the exchange, you will receive LP-tokens - liquidity provider tokens.
LP-tokens have two main characteristics. You can use them to reclaim your liquidity or you can deposit them and receive additional rewards.
When providing liquidity you will receive a matching set of LP-tokens for the specific pair. Not all LP-tokens are eligible for rewards. Below, we have listed the LP-tokens you will be rewarded for:
SIENNA (single sided staking)
SIENNA / sSCRT
SIENNA / sETH
SIENNA / sUSDT
SIENNA / USDC
SIENNA / SEFI
SIENNA / sXMR
SIENNA / WBTC
sXMR / sUSDT
sUSDT (ERC20) / sUSDT (BSC)
sUSDC (ERC20) / sUSDC (BSC)
sUSDT (ERC20) / sUSDC (ERC20)
sWBTC / sETH
sSCRT / sETH
sSCRT / sUSDC
In return, you will receive SIENNA according to your share of that specific pool. The amount for each pair will vary. SIENNA pairs will have higher rewards than non-SIENNA pairs.
Tokens are allocated proportionally on a daily basis. If your share of deposited LP-tokens for SIENNA/sETH is 15% you will receive approx. 75 SIENNA per day - but your rewards depends on more sophisticated factors as well, such as:
- how much you have deposited to a rewards pool
- how long you have those tokens deposited, meaning your lifetime pool share will matter too
The proportions amount of SIENNA allocated to each pair defined above can change to allow support for new important tokens entering the Secret Network ecosystem (sBTC, Polkadot tokens, IBC tokens, rewards for SiennaLend etc).
These changes will be subject to governance in the future.
A total of 3.6 million Sienna tokens will be granted as rewards over a four-year period.
The reason for this gradual minting of the 3.6 million SIENNA governance token is to fairly distribute the token to the users of the platform by using Sienna as a platform, thereby having a fully autonomous organization in the future where token holders decide over Sienna.