LaunchPools - Pools of this type contain only one CDT token and are used to pay rewards to users for providing liquidity to the respective asset. Anyone can add CDT to Launchpool. These funds are non-refundable, they are intended only for the payment of remuneration for the farming. Therefore, be careful when adding liquidity to the Launchpool you need.
Launchpool's liquidity is spread over 100 payout days. Based on this liquidity, we calculate the annual yield of liquidity provision for this pair.
R = P / (LP / 100)
Where R is the reward for 1 CDT token in the liquidity pool. P is the number of CDT tokens in the liquidity pool. LP is the number of CDT tokens in Launchpool.
Token pool X contains 100 CDT. Launchpool contains 1000 CDT 1000/100 = 100 100/10 = 0.1
We received that for one token in the pool there is a reward of 0.1 CDT per day - this is 10% per day. This means that the yield of this token is 365% per annum.
Another important point to keep in mind is that after each reward is paid, the number of CDTs decreases in Launchpool, which means that the interest rate will decrease in order to compete for access to miners' liquidity, the Launchpool must be replenished.
What does Launchpool give?
Launchpool distributes rewards to users for adding liquidity to a trading pair, respectively, if there is a large reward in a trading pair, users add liquidity to it. This increases the liquidity of the trading pair, the demand for the token and increases the activity of users in this trading pair.