Efficient & Beneficial Bribing

Bug Finance: The Ultimate Partner for Efficient and Beneficial Bribing

Bug Finance introduces a game-changing strategy that redefines the efficiency and benefits of bribing for protocols. With a unique exit mechanism, we present an advantageous environment where partners can attract and sustain liquidity for longer periods than ever before, which is a significant leap from the typical one-week rental of liquidity.

Sticky Liquidity: Through our unique exit mechanism, any liquidity that partner protocols draw towards Bug LP pairs becomes 'sticky'. This refers to the fact that liquidity stays for a more extended period, as opposed to merely one week, which is the standard case in other protocols. If liquidity decides to leave, it's required to pay an exit fee, further securing the benefit for the protocol, its partners, and veBUG holders.
Exit Fee Distribution: The exit fee charged when liquidity leaves is divided strategically. It contributes to auto bribes, strengthens protocol-owned liquidity, and provides a staking bonus. This implies that protocols always effectively purchase at least 0.5% of the liquidity they attract, as the minimum exit fee is 2.5%, and 20% of it goes towards boosting protocol-owned liquidity.
Greater Bribe Efficiency: Partner protocols will find it more rewarding to bribe on Bug Finance. As partners hold a substantial portion of the LP, they gain emissions from their bribes, amplifying their rewards. This creates an environment where partners can bribe more because they earn more from their own bribes and get a portion of their bribes back.
Bribe Recycling: With an increased voting power due to their LP holdings, partner protocols find bribe recycling a more viable and attractive strategy on Bug Finance. This further enhances the benefits and efficiency of bribing for partner protocols.

In summary, we reimagine the dynamics of bribing, making it a more profitable and sustainable practice for partner protocols. Through sticky liquidity, strategic exit fee distribution, greater bribe efficiency, and bribe recycling, Bug Finance ensures that partner protocols maximize the benefits from their bribes while contributing to the robustness of the ecosystem.

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Last updated 1 year ago

Bug Finance: The Ultimate Partner for Efficient and Beneficial Bribing

Sticky Liquidity: Through our unique exit mechanism, any liquidity that partner protocols draw towards Bug LP pairs becomes 'sticky'. This refers to the fact that liquidity stays for a more extended period, as opposed to merely one week, which is the standard case in other protocols. If liquidity decides to leave, it's required to pay an exit fee, further securing the benefit for the protocol, its partners, and veBUG holders.

Exit Fee Distribution: The exit fee charged when liquidity leaves is divided strategically. It contributes to auto bribes, strengthens protocol-owned liquidity, and provides a staking bonus. This implies that protocols always effectively purchase at least 0.5% of the liquidity they attract, as the minimum exit fee is 2.5%, and 20% of it goes towards boosting protocol-owned liquidity.

Greater Bribe Efficiency: Partner protocols will find it more rewarding to bribe on Bug Finance. As partners hold a substantial portion of the LP, they gain emissions from their bribes, amplifying their rewards. This creates an environment where partners can bribe more because they earn more from their own bribes and get a portion of their bribes back.

Bribe Recycling: With an increased voting power due to their LP holdings, partner protocols find bribe recycling a more viable and attractive strategy on Bug Finance. This further enhances the benefits and efficiency of bribing for partner protocols.