Product Update Issue 16: C-OP Incentives
With UNION’s first and revolutionary product, C-OP, successfully deployed to mainnet on May 5th and pool opened on May 6th, UNION has completed an important milestone.
This past week has been an eventful one indeed for UNION and its community.
On May 5th, C-OP contracts were deployed onto Mainnet:
- C-OP USDC/ETH Asset Pool: 0xf330951BD4FcFE714558f7Ca84357B04d8408048
- Protection Token (uUNN): 0xEB7D9d972788Bc942c509859c55Fd33B185E41A8
- Pool Token (pUNN):0xf330951BD4FcFE714558f7Ca84357B04d8408048
- app: https://c-op.unn.finance/
The team then did additional security checks overnight before opening the USDC/ETH pool front-end on May 6th, coordinated with our Chainlink integration announcement.
UNION tested liquidity adds, protection purchases, and validated that UNION’s risk control correctly prevented purchases when liquidity fell below the MCR (minimum capital requirement).
C-OP Liquidity Provider Incentive
UNION’s original intent was to distribute rewards to pUNN holders through its Geyser, as announced. However, after consideration of C-OP’s 5 day lock on deposits to prevent “premium sniping” as discussed here, team will make two adjustments:
- Whitelist the UNION Geyser so that pUNN tokens can be immediately staked into Geyser and bypass the 5-day anti-sniping lock. Timing of this work will be shared in the coming weeks.
- Begin accruing rewards for pUNN providers on 5/7th 00:00:01 UTC, one day after pool launch. These rewards will be earned pro-rata with the time-weighted algorithm, described below. The rewards will be distributed the earlier of development work completed for whitelisting Geyser -or- the end of the C-OP Liquidity Provider Incentive (90 days). UNION will also provide a spreadsheet for providers to check their estimated accrued rewards, timing to be announced next week.
Incentive Accrual Algorithm
The reward emission will be = 5 Million UNN tokens / 90 days = ~55,555 UNN / day for 90 days.
The Individual Share of Reward = {(Amount of pUNN staked by individual) * (days staked by individual)} / (sum of all pUNN staked by users * day staked for those pUNNs, respectively)
For example:
Assume program runs for 10 days with total reward= 55,555 UNN * 10 = 555,550 UNN. Note: this is completely for example purpose and not reflective of the real C-OP Liquidity Incentive.
- Joe stakes 5 pUNN for 10 days , so his weighted deposit = 5* 10 = 50.
- Jane stakes 10 pUNN for 2 days, so her weighted deposit = 10 * 2 = 20.
- Joe’s share of the accrued rewards when program ends will be 50 / (50 + 20) = 71% or 394,401 UNN.
- Jane’s share of the accrued rewards when program ends will be 20 / (50 + 20) = 29% or 161,109 UNN.
There is already $4,278 USDC accruing the UNN rewards in the C-OP ETH pool.
Hop into the liquidity pool and start earning UNN with those USDCs, on top of any premiums that may be earned from protection buyers!
About UNION
UNION is a technology platform that combines bundled protection and a liquid secondary market with a multi-token model. DeFi participants manage their multi-layer risks across smart contracts and protocols in one scalable system. UNION decreases the entry barriers for retail users and lays the foundation for institutional investors. UNION’s full-stack DeFi protection is inclusive, composable, and brings battle-tested capital and pricing models from TradFi to the DeFi ecosystem.
Website: https://www.unn.finance/
Twitter: https://twitter.com/unnfinance
Telegram: https://t.me/UNNFinance
Telegram ANN: https://t.me/UNNFinanceANN
