Today, we are announcing a new addition to EnCore: A new vault, but with a twist! Instead of another vault similar to the ENCORE/ETH UniV2-LP vault, where you deposit and you earn your share of transaction fees on ENCORE transfers, our new vault will allow you to earn ENCORE and extra LP tokens!
LPs and their fees
Transferring LP tokens from person to person or selling it on another exchange such as balancer has no fee. However, we will introduce a new fee for these LP tokens. Every time a person withdraws LP from our vault, a 5% fee is taken out of that and locked away into another contract. Then, that contract will release the locked LP tokens into our timelock, which will reward long term investors some extra rewards.
How will this timelock vault work?
Tomorrow, starting at an time TBD, the timelock depositing will be active for 3 days. During this time, you can chose to deposit your LP tokens into the timelock. Once deposited, you cannot retrieve the LP tokens back until the end of the timelock period. The tokens that you deposit will be locked for 45 days, after the depositing window is over. During this time, your tokens will be kept there, and you cannot deposit more, withdraw, or claim any rewards. Once these 45 days are over, you will be able to withdraw your tokens, however the twist is that you will get extra tokens back. You will get your share of accumulated ENCORE tokens from fees during the 45 days, and your share of the LP tokens that have been locked away from withdrawing.
Why invest into the timelock?
By being a long term investor and investing into the timelock, you are able to get extra rewards. You will receive your proportion of ENCORE tokens that you would’ve earned during the 45 days, and a bit of extra LP tokens on top. That means if you don’t touch your tokens for 45 days you’ll earn more on top of the ENCORE that you would be earning.
