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RAI Uniswap V3 Mint + LP Incentives Program

Overview

The RAI Mint + LP strategy requires that participants mint RAI and provide RAI/DAI liquidity on Uniswap v3 at the same time in order to accrue rewards. The rewards will claimable monthly around the 15th of the month. The RAI/DAI 0.05% fee pool concerned is here.
They are 2 important condition:
  • The more concentrated the position is, the more reward you get. However, the position needs to include the current market price and current redemption to qualify. If the position isn't including the 2 prices, it won't accrue any FLX rewards
  • The RAI debt value in USD in the Safe, needs the cover the full LP position value (RAI + DAI) to earn maximum rewards. If the RAI debt is less than the total LP position value, a proportional discount is apply to the amount of rewards.

How It Works

  1. 1.
    Go to app.reflexer.finance or DeFi Saver and mint some RAI.
  2. 2.
    Go to the RAI/DAI Uniswap v3 pool and add the RAI you minted as liquidity
When choosing the range, make sure to include both the redemption and the market price:
You can find the redemption price at https://stats.reflexer.finance/. The RAI market price will be displayed directly on the Uniswap v3 UI.
To help you to find the best range, we provide recommendations at https://app.reflexer.finance/#/earn/incentives. You can use the optimal range for large positions that you are willing to potentially rebalance more often. Use the recommend range if you will be monitoring your position less often.
Important: both the redemption price and market price move over time. If any of the prices move outside of your LP range, you won't accrue any LP rewards. If you intend to move/rebalance your position less frequently, you can pick a wider range.

Additional notes:

  • We always assume 1 DAI = 1 USD for the calculations
  • Rewards are calculated using this script
  • You must use the same address to mint RAI and provide Uniswap v3 RAI/ETH or RAI/DAI liquidity
  • The Uniswap v3 RAI/DAI LP tokens must stay on the same address that you used to mint RAI and provide liquidity
  • If you open multiple Safes with the same address, your total RAI debt will be the sum of all RAI minted by each of your Safes
  • If you have several LP positions with the same address, the total sum of the liquidity will be considered for rewards.
  • Only positions from the official Uniswap V3 NFT manager are supported (used by the official UI at https://app.uniswap.org/#/pool). Positions directly minted on the pool contract are not supported.
  • If your Safe gets liquidated, the amount of minted RAI you have decreases by the amount of RAI that got confiscated

Examples

Current redemption price: $3.0322 Current market price: $3.03897 (DAI per RAI but we assume 1 DAI = 1 USD)
Bob: Mint 1000 RAI + LP between 3.0312 and 3.0403 for a total position value of $3038.97 Alice: Mint 1000 RAI + LP between 3.0281 and 3.0433 for a total position value of $3038.97 George: Mint 500 RAI + LP between 3.0281 and 3.0433 for a total position value of $3038.97 Robert: Mint 1000 RAI + LP between 3.0281 and 3.0372 for a total position value of $3038.97 Richard: Mint 1000 RAI + LP between 3.0342 and 3.0433 for a total position value of $3038.97
  • Bob earns more rewards than Alice because his position is more concentrated. However, he might have to rebalance soon since the prices are close to the boundaries of his range.
  • George earns about half the rewards that Alice gets because his debt value is only 500 RAI (= $1519.48) which is only half of his position value ($3038.97).
  • Robert earns 0 FLX rewards because his range does not include the market price
  • Richard earns 0 FLX rewards because his range does not include the redemption price
Last modified 1mo ago