1. What is Liquidity Provider Distribution?

    1. Liquidity Provider Distribution is a feature that removes an amount of ROWAN from all liquidity pools and distributes that ROWAN back to the Liquidity Providers of that pool. For example:

      Screen Shot 2022-07-19 at 4.52.57 PM.png

  2. How much ROWAN will be removed?

    1. The amount that is removed from the pool, and how frequently it is removed from the pool will be clearly communicated through communication channels and on the Sifchain docs site.

  3. How are the Liquidity Pools impacted?

    1. Even though ROWAN is being removed from the pool, the ratio of the pool in terms of ROWAN:TKN will remain at 50:50. This means:
      1. The total value that remains in the pool after this action will remain the same.
      2. Each liquidity provider will have the same % ownership of the pool as they did before the ROWAN removal.
      3. Each liquidity provider’s total value of the pool will remain the same as before the ROWAN removal.

  4. Is the Swap Formula impacted at all?

    1. The swap formula will not be impacted by this feature.

FAQ: User Impacts

  1. How does Liquidity Provider Distribution change the experience of being a Liquidity Provider on the Sifchain DEX?
    1. If you are a liquidity provider, you will get ROWAN automatically distributed to your wallet for all pools you currently have liquidity in. The amount you get will be based upon the liquidity provider distribution parameters and your percent ownership of that pool. Once the ROWAN is in your wallet, it is liquid, and you can use it however you want.
    2. Your overall value in the liquidity pool you have liquidity in will remain the same and will not be impacted by ROWAN being removed and distributed to your wallet.
  2. How much ROWAN will each Liquidity Provider get?
    1. First, the total amount & speed with which ROWAN is removed will be variable. Second, the amount that each liquidity provider gets is based upon their ownership of that pool. For example, if an LP wallet owns 2% of that respective liquidity pool, that wallet will get 2% of the ROWAN removed from the pool.
  3. What can the Liquidity Providers do with the ROWAN they receive in their wallets?
    1. You can do anything you’d do with any other ROWAN you have in your wallet. This includes:
      1. You can stake or delegate it and earn rewards for doing so (see here for more details).
      2. You can pair this ROWAN with any other token and add it to any of Sifchain liquidity pool, earning rewards from any of our active LM reward programs and swap fees. See here for directions.
  4. Will Liquidity Provider Distribution change the withdrawal process when removing liquidity from the Sifchain DEX?
    1. No, LPD does not change the un-pooling process. Keep in mind though, when you remove your liquidity from a pool, you will no longer receive ROWAN distributed to you from LPD from that pool from point forward distributions.
  5. Does Liquidity Provider Distribution change the swapping experience on the Sifchain DEX?
    1. No, LPD does not change the swapping experience on the Sifchain DEX. The prices of the assets that are determined for the swap will remain based on the pool being at a 50:50 ratio.
  6. Does Liquidity Provider Distribution change staking or delegating ROWAN to a validator?
    1. No, staking & delegating are not changed by LPD.

HackMD Spec

https://hackmd.io/ZE2JzXkURYCoXiuHojh2rA?view