Boosted Pools
Farms Plugin
Boosted Pools is a farms plugin enabling Rooster to reward liquidity providers (LPs) with additional incentives beyond trading fees. By staking their liquidity positions, users can earn protocol rewards or partner tokens, making liquidity provision more attractive and sticky. This plugin introduces tokenized liquidity, time-based farming campaigns, and adaptive reward distribution to ensure fair and efficient incentivization across the Rooster ecosystem.
Key Features
Liquidity Provision: Users supply token pairs to Rooster pools, facilitating efficient trading while becoming eligible for additional rewards.
ERC-721 Tokenized Liquidity: LP positions are represented as ERC-721 NFTs. These NFTs can be staked into farming contracts, enabling position-specific rewards tied to liquidity ranges.
Yield Farming: LPs stake their ERC-721 liquidity positions (or other eligible assets) into farms to earn bonus tokens on top of trading fees.
Time-Limited Campaigns: Reward campaigns are structured with defined durations, ensuring sustainable emissions and predictable incentives.
Adaptive Reward Calculation: Rewards are distributed based on how long liquidity is actively provided within the valid range (effectively proportional to the trading fees your position earns), aligning incentives with consistent liquidity provision.
Multiple Reward Tokens: Up to two tokens can be configured as reward tokens for each boosted pool
Benefits
Enhanced Liquidity Depth: Boosted incentives encourage LPs to lock liquidity for longer, stabilizing trading conditions and reducing slippage.
Passive Income Opportunities: LPs earn both trading fees and farming rewards, creating stronger ROI on capital deployed.
Community Engagement: Boosted Pools foster stronger ties with token holders and ecosystem partners by providing accessible, yield-driven opportunities.
Protocol Attractiveness: Boosted Pools make Rooster more appealing to LPs and partner projects looking to bootstrap liquidity.
Implementation
Boosted Pools integrates directly with Rooster’s liquidity pools:
LP positions are minted as ERC-721 NFTs when liquidity is deposited.
LPs stake these NFTs in farming contracts.
Rewards accumulate and can be claimed during or after the farming campaign.
How Farming Works
Farming on Rooster serves as a reward boost on top of swap fees, incentivizing liquidity provision. However:
Farming rewards are only distributed to in-range liquidity (i.e., positions that are currently active in the market price range),
No rewards are earned during inactive periods, or when there is no trading volume in the pool.
Rewards Calculation
rewardToken=farming.rewardRate∗INTERVAL∗rewardToken.derivedTokenrewardToken=farming.rewardRate∗INTERVAL∗rewardToken.derivedTokenfarmingMultiplier=rewardsTOKEN/FeeCollectedTotalTOKENfarmingMultiplier=rewardsTOKEN/FeeCollectedTotalTOKEN
Key Terms:
farming.rewardRate: Amount of reward token distributed per intervalINTERVAL: Duration of the intervalrewardToken.derivedToken: Value of the reward token expressed in the DEX’s main token (e.g., ETH, TON)feeCollectedTotalTOKEN: Total fees collected across the pool during the interval (in the platform's token)
Example:
• farming.rewardRate: $500/day in USDT
• INTERVAL: 1 day
• rewardToken.derivedTOKEN: 1 TOKEN = 6 USDT
• TVL of the pool: $1,000,000
• Pool Trading Volume: $500,000/day
• Pool Commission Percentage: 0.3%
• Fee Collected: $1,500
In this case, the farming multiplier is 1.33, meaning liquidity providers will receive additional 0.33 TOKEN for each TOKEN of fees collected, provided liquidity is within the active price range.
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