The Farmer Airdrop and Partner Protocol Incentives

Pearl Exchange
5 min readJun 9, 2023

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Airdrops are a proven tool for building early community and attracting protocol liquidity. From the outset, our strategy with this airdrop was to reward reliable ve(3,3) token lockers, protocol voters and liquidity providers with a generous 28% of the initial token supply. Our goal is to put meaningful sums of money in the right hands:

  1. Active participants in key Solidly ecosystems and other vote-escrow protocols
  2. Major liquidity providers on Ethereum and Polygon
  3. Invested Tangible customers/community members

Additional token supply has been set aside as incentives to future protocols who are interested in partnering with Pearl.

Before jumping into the allocations, let’s acknowledge a couple of truths.

  1. Crypto isn’t egalitarian
  2. No one is happy with the outcome of airdrops

The airdrop is about helping Pearl, not simply rewarding the users of other protocols. Our goal is to incentivize action. As such, the users who we view as having the power to provide the most help to Pearl will receive the largest incentives. A user with $1.5MM in liquidity is getting a proportionally larger share of incentive than a user with $1,500.

There’s also the issue of efficiently scraping the data off various different protocols, within multiple LPs and across numerous chains. This was a massive undertaking and at times the airdrop criteria we’ve used has been influenced by the feasibility of pulling the data vs the intended allocation strategy. Some users may unfortunately feel left out as a result, it’s simply bad luck. We’ve decided to share the code used throughout this process as a matter of transparency.

In the end, we can’t give free tokens to everyone. Hard decisions had to be made. Assets have been allocated where we believe they will yield the greatest returns. You may not agree, but no amount of arguing with the team can change the outcome at this point.

That all being said, Pearl is designed to benefit ALL of its users. We believe our flywheel will serve the good of our entire community and hope users with initial supply and those without will participate in what we’re building.

KEY DETAILS:

Airdrop snapshot: 00:00 UTC, 6/1/2023 (1685577600 UNIX)

The airdrop claims will be open for two weeks from the initial deployment of the incentives. After two weeks, any unclaimed tokens will be burned.

Airdrop expires: 00:00 UTC, 6/24/2023

The airdrop will aggregate all of the rewards associated with any wallet. For example, veVELO, Chronos LP and Tangible 3,3+ incentives tied to the same wallet will be consolidated into one vePEARL token claim.

Any contract that was pulled as part of our scraping has been removed. Known protocol wallets have also been excluded.

Link to scraping code: https://github.com/0xc4ad/Airdrop

Airdrop Claim Link: https://pearl.exchange/airdrop

Good luck to everyone!

FARMER AIRDROP AND PARTNER COMMUNITY ALLOCATIONS:

As the largest ve(3,3) DEX in operation, Velodrome has largest and longest tenured pool of active token lockers. It’s by far the most mature Solidly ecosystem and is the ideal throughway to our ideal consumer target currently active on OP.

4.5% of the supply to veVELO holders proportionate with voting power

  • We identified the top 1,000 veVELO wallets by total holdings and removed known protocol wallets to focus the airdrop on individuals
  • 2,250,000 vePEARL were distributed proportionally amongst the top 1,000 based on voting weight

Convex is the premiere yield optimizer and aggregator for Curve LPs. By airdropping to Convex users, we get access to the largest audience of yield farmers and liquidity providers on Curve, the third largest DEX on Polygon. Convex/Curve LPs are incentive-driven liquidity providers with a clear understanding of the benefits of the vote-escrow model.

3.375% of supply to Convex ETH LPs

  • We identified the top 500 LPs on Convex ETH and removed know protocol wallets to focus the airdrop on individuals
  • 1,687,500 vePEARL were distributed proportionally amongst the top 500 LPs based on total liquidity provided

2.25% of supply to Convex Polygon LPs

  • We identified the top 500 LPs on Convex Polygon and removed know protocol wallets to focus the airdrop on individuals
  • 1,125,0000 vePEARL were distributed proportionally amongst the top 500 LPs based on total liquidity provided
  • Liquidity providers through the Beefy 3CRV and USDR-3CRV vaults have been included in the award provided they’re within the top 500 LP wallets on Convex Polygon

Chronos has captured a significant amount of TVL since launch and is the second largest Solidly fork behind Velodrome, with a large number of active pools and token lockers. To whatever extent Arbitrum has captured the “degen” audience on the L2, Chronos is now the preferred liquidity layer for this audience we want to capture for Pearl.

2.25% of supply to Chronos LPs proportionate with their TVL

  • We identified the top 500 LPs on Chronos by total liquidity provided across all pools and removed know protocol wallets
  • 1,125,0000 vePEARL were distributed proportionally amongst the top 500 by total liquidity provided
  • Liquidity providers through Beefy have been included in the award provided they’re within the top 500 LP wallets on Chronos

2.25% of supply to active veCHR lockers proportionate with voting power

  • We identified all new NFT creation events since launch, excluding airdrop NFTs and aggregated the total veCHR voting power by user
  • 1,125,0000 vePEARL awarded to the top 1000 veCHR lockers using the voting power they had at the time of minting

Tetu hosts some of the most active Balancer LPs (four largest DEX on Polygon) and vote escrow participants on Polygon. Tetu has built a thriving community of farming-focused LPs, sophisticated yield seekers with ample liquidity on Polygon to jumpstart the growth of Pearl.

1.125% of supply to veTETU and TETUBAL voters

  • Identified all veTETU and TETUBAL holders who have voted over the past six months
  • 562,500 vePEARL awarded proportionally based on voting power, allocating a minimum of $20 to the final recipient.

Tangible is our primary strategic partner in the launch of Pearl. Their support has been invaluable throughout this process and as such it’s only fair to reward their community, one of the original RWA communities in crypto, with a generous allocation of initial supply.

2.25% of supply to USDR minters, distributed proportionally based on total “minted minus redeemed”

  • We identified anyone having minted more USDR than they burned, with a net total over $1,000
  • 1,125,0000 vePEARL awarded proportionally to these users based on their USDR balance
  • To be eligible, minting had to happen directly through the UI (or equivalently by calling USDRExchange.swapFromUnderlying directly on the blockchain), not via smart contract.

10% of supply to Tangible 3,3+ NFT Holders (incremental to 18% Farmer allocation)

  • Identified all current 3,3+ holders with NFTs in their wallet, not for sale in the Tangible marketplace
  • 5,000,000 vePEARL awarded proportionally to 3,3+ holders based on aggregated total for each wallet

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Pearl Exchange

The premier liquidity layer on Polygon and first DEX to focus on tokenized real world assets.