Liquidity Mining Program

The primary goal of the Liquidity Mining Program is to amplify the Total Value Locked (TVL) of sBTC and STX through staking on Papaya. Participants can achieve this by staking either sBTC or STX, after which they will be awarded the PAPA token. The amount of PAPA tokens one receives is directly proportional to the liquidity they provide.

28% of all PAPA tokens have been set aside specifically for this program, which will be released over a span of 12 years

The method to calculate rewards is based on the revenue share, factoring in the amount of PAPA tokens a participant has staked compared to the overall staked PAPA tokens. The specific formula for liquidity mining rewards is as follows, given: TsT_{s}: Total supply of stSTX TbT_{b}: Total supply of stBTC HsH_{s}: A users STX holdings HbH_b: A users BTC holdings VsV_s: Price of STX VbV_b: Price of BTC RsbR_{sb}: Value Ratio of STX to BTC Δpapa\Delta_{papa}: Papa Liquidity Mining Rewards released this cycle

The ratio of STX value to Bitcoin value is determined by the STX/BTC swap price determined by an Oracle.

Rsb=VbVsR_{sb} = \frac{V_b}{V_s}

A user’s liquidity mining rewards for the current cycle are then determined by:

Pr=Hs+RsbHbTs+RsbTbΔpapaP_{r} = \frac{H_s + R_{sb} \cdot H_b}{T_s + R_{sb} \cdot T_b} \cdot \Delta_{papa}

To be eligible, users must stake either sBTC or STX on Papaya. Additionally, there's a lockup stipulation which requires participants to maintain their staked liquidity for an entire cycle to be considered for rewards.

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