The DAO requests you earn your rum!
What is $RUM?
Rum has been requested by the DAO and have agreed a portion of the next NFT collection as a specialised reward for people who provide liquidity for Damned Pirates Society assets. Incentivised pools will start Thursday 18 May 2022.
What is $RUM used for?
$RUM holders will be able to redeem $RUM for other Pirateverse assets such as our Secondary Collection. A specific amount of future collections will be set aside for purchase only by $RUM, not only ensuring Liquidity providers get on the allow list, they also exchange $RUM for an effective free mint.
The DAO has requested 6% of the Pirates 2 Collection to be made available for purchase by $RUM holders only. Once the collection numbers have been finalised we will be able to finalise the exact $RUMcost per mint. $RUM rewards will be split between the following two pools.
Mints will cost 200 RUM each.
TMAP <-> Doubloon - 20,000 $RUM
Doubloon <-> MOVR - 100,000 $RUM
The rewards will be issued over a 6 month period. The more $RUM you earn the more you can mint for free.
In future we will aim to provide cosmetics only purchasable for $RUM in future. $RUM is going to be exclusive.
Why not just offer $TMAP and/or $Doubloons?
By giving liquidity providers $TMAP or $Doubloons as rewards you create downward sell pressure on assets as people look to convert those rewards into cash. By offering a different asset we look to protect the value of these currencies.
Why should I provide LP?
As we grow as a project we want people to have an easy on ramp to the game. The goal is that Doubloons are the currency of the Pirateverse and having a Doubloon <-> MOVR pool gives players an easy on ramp. From there they can purchase TMAP from the TMAP <-> Doubloon pool to go on voyages. Using any spare doubloons to acquire upgrades and support ships.
NFT projects are a collective effort by all involved, just like guilds in WoW or ESO. By offering $30 or $50 of LP, you help lower slippage and create a better experience for all. When everyone is working together for the long term health of the project, the project is much stronger.
What are the risks?
The main risk when providing liquidity is impermanent loss. When you provide liquidity to a pool you take the current swap rate and provide assets in that ratio. As the price fluctuates you will be able to withdraw more of one than the other.
E.G If you add 100 $TMAP and 3000 $Doubloons and the $Doubloon Prices increase vs $TMAP, when you come to remove liquidity you might receive 150 $TMAP and 2000 $Doubloons.
Dao Owner Liquidity
The DAO will be utilising its assets to provide liquidity to the pool for two reasons.
- Deeper liquidity providers less slippage for players and a better game experience.
- The Freemints from $RUM rewards will allow the treasury to collect NFTs that can be auctioned or used as giveaways for the community and is the first step in generating revenue for the treasury.
If anybody wishes to donate small amounts of $TMAP, $Doubloons, $RUM or $LP to the treasury it would be greatly received
(Treasury Address: 0x85E3A9A05d5e37778ee4559673F7c4F3ACb831b1).
How to Add LP
- Go to https://app.solarbeam.io/exchange/pool
- Click Add
- Choose asset 1 as Doubloon
- Choose asset 2 as either MOVR or TMAP
- Select the amount of Doubloons you wish to add
- The DAPP will select the appropriate amount of MOVR or TMAP for you
- Approve Tokens
- Confirm adding liquidity
- Next go to https://app.solarbeam.io/farm
- Search for Doubloon
- Select the appropriate farm and approve
- Add Max liquidity and confirm
- Stake that liquidity to start earning $RUM
- Wait for that $RUM balance to grow!
Now go out there and get your rum, ye scurvy dogs!
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