Haiko x Starknet Foundation DeFi Spring Incentives Program

We are excited to announce that Haiko is participating in the Starknet Foundation DeFi Incentives Program, which launches on 22 Feb 2024.

The program will run for six to eight months and distribute 40M STRK to participating users and LPs to incentivise productive TVL growth on Starknet.

This means you can now earn STRK rewards by providing liquidity on Haiko!

Read on to find out:

1. How you can receive token rewards on Haiko
2. Benefits to participating in the Program through Haiko

Key details

• Duration: 6–8 months
• Available incentives: 40M STRK (shared across participating AMMs)
• Rewards start accruing: 22 February 2024
• Distribution frequency: Every 2 weeks
• First claim date: 7 March 2024
• Eligible pairs: STRK/USDC, STRK/ETH, ETH/USDC, USDC/USDT
• Claim link: https://app.haiko.xyz/rewards

Rewards Allocation Methodology

To align with the Foundation’s goal of rewarding productive TVL, Haiko will be distributing token incentives to users based on active liquidity placed over time.

This ensures protocol-level allocations from the Foundation are directly paid out to contributing LPs, resulting in a fair distribution.

Seven pairs are currently eligible for rewards:

• STRK/USDC
• STRK/ETH
• ETH/USDC
• USDC/USDT
• wstETH/ETH (added on 22 Mar)
• ETH/WBTC (added on 22 Mar)
• DAI/USDC (added on 22 Mar)

Please note that only new DAI is incentivised at the moment.

New DAI: 0x05574eb6b8789a91466f902c380d978e472db68170ff82a5b650b95a58ddf4ad.

This list may be updated over time, which we will publicise on Twitter, Discord and update this article for.

For each pair, the rewards earned by Liquidity Providers is calculated based on three factors:

In other words:

1. Larger positions earn more rewards
2. Positions accrue rewards per second
3. LP positions placed nearer to market price earn more rewards

To better understand how this works, let’s consider an example.

Example

Alice deposits 1 ETH and 2500 USDC at a price range of 2,500–3,000.

Over the following 2-week period, the price of ETH/USDC fluctuates from 2,500 to 2,800. The productive share of Alice’s position is therefore:

Position range: 2500 - 3000
Market price range: 2500 - 2800
----------------
Productivity = (2800 – 2500) / (3000  – 2500) = 60%

The total rewards received by Alice is proportional to her score:

Quantity: 1 ETH + 2500 USDC (~$5000)
Time: 14 days = 1,209,600 seconds
Productivity: 60%
----------------
Score: $5000 x 1,209,600 x 60% = 3,628,800,000

Note: In practice, productivity is estimated based on the expected fluctuation of asset prices. This may differ from the actual fluctuation range of the pair over the rewards period.

How do I collect my allocated token rewards?

To monitor and claim your token rewards, visit Haiko Rewards page here.

Please note that:

• The Program is run in fortnightly (2-week) intervals.
• Uncollected rewards from a previous fortnight will be rolled over to the next period and continue to be available for collection.
• Any STRK tokens not claimed by the user at the end of the Incentives Program will be forfeited and returned to Starknet Foundation

Benefits to participating in the Program on Haiko

Several other AMMs are participating in the DeFi Incentives Program. Here are some reasons you may choose to participate through Haiko.

Tldr:

1. Maximise rewards with Strategy Vaults
2. Potential to earn a larger share of token rewards

Maximise productivity with Strategy Vaults

As explained above, rewards are distributed to participating users based on the productivity of their positions, amongst other factors.

A unique benefit of Haiko is the availability of Strategy Vaults, which automatically manage and rebalance positions around market price as prices move.

In other words, depositing to a Strategy Vault will allow positions to be optimised for maximum productivity (and rewards).

Note however that Strategy Vaults are currently pending integration with AVNU, the leading Starknet aggregator (regular pools have already been integrated). In the meantime, LPs may wish to deposit to regular liquidity positions before migrating their liquidity once the integration is complete.

We will announce updates on Twitter and Discord, so stay tuned.

Earn a larger share of token rewards and grow with Haiko

Haiko offers LPs the chance to earn a larger share of token rewards and grow with our protocol.

As explained above, Haiko allocates rewards to users based on their individual contribution to total productive liquidity.

Since we are a relatively new AMM protocol on Starknet, you will be able to make a larger contribution on Haiko as compared to other AMMs, and be entitled to a greater share of rewards.

Updating the Haiko Points Program

To streamline LP incentives, we are replacing our current Points Program with the Allocation Methodology described above.

Our current Points Program allocates points based on swap fees paid by traders and earned by users on their liquidity positions (including via Strategy Vaults).

This will be deprecated in favour of a long-running version of the Rewards Allocation Methodology. This will allow users to provide liquidity on Haiko without having to meet two different sets of criteria.

Existing points will be retroactively updated for the new criteria. Our launch bonus of 50% will also be retroactively applied.

This update means swappers will no longer earn points on Haiko. Instead, we encourage them to migrate to aggregators such as AVNU and Fibrous to earn rewards.

We are excited to be launching this rewards program in partnership with Starknet Foundation, and look forward to distributing the first set of rewards soon.

See you on Haiko, LPs!

If you have any questions about the DeFi Incentives Program or our existing Points Program, join our Discord community for help.