Liquidity Pool Farms

Liquidity providers are essential to the Solidus Synth ecosystem, ensuring deep liquidity, efficient trading, and peg stability for synthetic assets. To incentivize participation, the protocol offers sSynth rewards to liquidity providers who stake their assets in Synth liquidity pools.

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Reward Structure & Emission Allocation

Liquidity Mining Rewards – sSynth emissions are distributed to two key liquidity pools:

Liquidity Pool	sSynth Allocation	Purpose
xsS/S (Sonic) LP	70%	Supports the synthetic Sonic asset (xsS) paired with the S (Sonic) token, ensuring stability & deep liquidity.
sSynth/S (Sonic) LP	30%	Enhances the liquidity of the Synth utility token, supporting trading efficiency.

📌 LPs earn sSynth rewards based on their stake in the pools, helping maintain deep liquidity and stable synthetic asset pricing.

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Vesting & Claiming Mechanisms

To balance long-term participation with yield opportunities, liquidity mining rewards are subject to a structured vesting and claim process.

⏳ Vesting Period (4 Weeks)

• Farmed sSynth rewards vest over 4 weeks.

• During this period, rewards remain staked, allowing participants to continue earning additional platform fee rewards.

🔓 Initiating Vesting

1️⃣ Claim rewards from the Farm Page to start the vesting countdown. 2️⃣ Rewards enter the vesting schedule and become visible on the Staking Page.

⚠ Early Withdrawal Penalty (50%)

• Users can claim rewards early, but they will forfeit 50% of their vested sSynth.

• Penalty funds are redistributed to long-term stakers as an additional incentive.

Claim Timing	Received Rewards	Penalty Applied?
Early Claim (Before 4 Weeks)	50% of vested rewards	✅ Yes – 50% of rewards forfeited
Standard Claim (After 4 Weeks)	100% of vested rewards	❌ No penalty

📌 This vesting model encourages long-term liquidity provisioning while allowing flexibility for users who need to exit early.

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Why Participate in Synth Liquidity Mining?

✅ Earn sSynth rewards while providing essential liquidity. ✅ Enhance peg stability and deepen the Synth market. ✅ Continue earning platform fees during vesting. ✅ Maximize yield with long-term staking incentives.