Campaign for Runes launch on Sovryn and Dex 2.0 launch on BOB
Participants in the Sovryn Runes & Extra Spice points program earned a 50% bonus to BOB’s Fusion Spice plus additional Runes points when they deposited via Sovryn. With the BOB mainnet launch (around April 20, 2024) deposited funds were unlocked as LP tokens and can be withdrawn—and will continue to earn points for both Spice and Runes as long as they are held.
Participating via Sovryn means depositors earned:
Detailed explanation below.
Sovryn launched a new version of its DEX (DEX 2.0) on BOB (Build on Bitcoin), a hybrid Layer 2 chain. To prepare for that, Sovryn conducted a liquidity provision campaign. The campaign rewarded points for providing liquidity, and these were used to determine each user’s share of the campaign rewards.
BOB is a chain that seeks to combine Bitcoin security with the programmability of Ethereum. BOB has initially deployed as an OP stack rollup on Ethereum, which gives native support to ERC20 tokens, access to DeFi liquidity, and easy on- and off-ramps with major exchanges.
Points were awarded in three categories:
Points were calculated based on the amount and type of assets deposited by each user into the liquidity pool. This calculation occurred at 24-hour intervals and took into account deposit size, asset type, and duration of the deposit.
Spice points were calculated in two components. The first component was awarded with each deposit. The second component accumulated with each day the deposit was held before the launch. Users maximized their points by depositing as early as possible.
Extra Spice Points were distributed as the pro rata share of total points earned by holding for at least 30 days. Depositors who continue to provide liquidity will continue to earn Extra Spice points after 30 days.
Rune Points were distributed as the pro rata share of total points earned by holding your LP tokens or at least 60 days. You will continue to earn additional fees and points while you hold your LP tokens.
By providing liquidity, users earned points before the BOB launch and continue to earn after the launch.
Extra rewards were given according to the following:
Example:
It is recommended to send funds from an address you control. It is not advised to send funds directly from exchanges or contracts. Funds sent from exchanges or contracts could be lost after bridging to BOB.
Deposit via BOB Fusion -> funds unlock -> stake for 60 days -> Get full bonuses
eSOV deposits made via the referral link in the Sovryn dApp will be made via the BOB Fusion interface.
Upon deposit, users will be able to see their Spice points on BOB Fusion without any bonus applied and without Rune points. Upon BOB mainnet launch, the eSOV deposits were unlocked in full. Depositors who bridged their funds to Sovryn on BOB received an immediate 15% Bonus on their Spice points.
After the funds were unlocked, users were required to bridge their funds from Ethereum to BOB within 7 days and stake their eSOV for at least 60 days to get the additional Spice points and the Rune points.
A 75% Spice bonus was given to deposits made until April 5 2024, 23:59 UTC.
A 50% Spice bonus was given to deposits made until April 30 2024, 23:59 UTC.
Users were to deposit their funds in the vault. Once Sovryn on BOB launched, participants were issued Liquidity Provider (LP) tokens that are redeemable for the same value as the initial deposit. Half of the deposited funds were swapped for SOV, and the LP tokens were for AMM pools paired with SOV. Once users were issued LP tokens, users could redeem them for the initial value of their deposit or continue to hold them as LP tokens to earn more points and transaction fees.
For example, a user deposited WBTC to the vault. Upon unlock, the user could choose to swap back to WBTC or to keep the LP tokens to earn more Spice and Rune points plus transaction fees fees on the Sovryn protocol activity.
Learn more:
Read further in our wiki about impermanent loss and details of how AMMs work