Lock Liquidity & Get Rewarded on Algebra DEXs with Brokkr Plugin!
We’re excited about the partnership with Algebra where we will build innovative plugins for their Integral DEXs. Plugins allow powerful pool features which we demonstrated with our Liquidity locking, ALM, Dynamic fees, and Combo hooks. Now we started working on the first plugin — Liquidity Locking & Liquidity Incentives.
More plugins are on the horizon, including loyalty programs to boost APR, swapping discounts, order books, and more!
🔒Liquidity Locking & Liquidity Incentives
One of the most requested features by DEXs is the ability to provide liquidity incentives and enable locking. Traditional concentrated liquidity pools lack built-in incentive mechanisms, relying instead on third-party solutions like Merkle.
Our plugin replicates the mechanics of V2 pools and allows liquidity to be locked in an infinite range while rewarding users with additional tokens or NFTs. It’s highly customizable and provides DEXs flexibility to adjust it to their liking.
Customizable Parameters:
1. Lock Period 🔐
🔹User-based
Users can set their own locking periods, ranging from 1 second to practically infinity (2ˆ256 seconds, the limits are determined by the deployer)
🔹 Fixed
DEXs can set a unified locking period for all users
2. Distribution & Size of Rewards 🏆
🔹 Linear
Users receive consistent rewards based on their deposited amount
🔹 Dynamic
• Time Based — Rewards favor those who lock liquidity for longer periods
• Amount Based — Rewards vary based on the amount locked, such as through tiered systems
🔹 Dependent
Rewards can be linked to another feature, protocol, or be customized
• Staking — Increased rewards for users who stake in a specific contract
• NFTs — Increased rewards for holders of particular NFTs
3. Reward Type 🪙🐵
🔹Tokens
🔹NFTs
In the current version, users deposit only in a full range (V2-like pool) because calculating fair rewards distribution for individual user ranges on-chain is practically impossible. Given that the majority (90%) of new pools are V2, this should not pose an issue for most DEXs.
📓Practical examples
1. User-based locking with Time-based distribution
Users can select from multiple locking periods, with rewards scaling based on the length of the lock. This approach incentivizes users to commit their tokens for longer durations.
• 30 days lock = 1x rewards
• 90 days = 1.25x rewards
• 180 days = 1.75x rewards
• 365 days = 2.5x rewards
2. Fixed locking dependent on Staking
DEXs can set a fixed locking period for all users and adjust liquidity incentives based on staking amounts. This encourages users to engage with various DEX functions or features.
• Locking period = 3 months
• stakedTokens <5000 = 1x Rewards
• stakedTokens 5,000–15,000 = 1.25x Rewards
• stakedTokens 15,001–35,000 = 1.75x Rewards
• stakedTokens >35,000 = 2.5x Rewards
Upcoming: ZK-Liquidity Locking & Liquidity Incentives V2
To support user-based range locking, we will introduce a new version using ZK-coprocessors. These coprocessors can handle complex calculations and access historical data, making them ideal for computing rewards for custom ranges and adding diverse distribution mechanisms for DEXs.
More details will come out soon!
Stay in touch! 🤝
Follow Brokkr on:
🌐 BRO Website
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