[LIP-10] Parameter Updates to Lightning Incentivisation Programme Formula Introduced in LIP-9

With the growth of the Zilliqa ecosystem and more projects being developed on it, rewards from ZilSwap’s Lightning Incentivisation Programme continue to be shared across an increasing number of pools and will continue to be spread more thinly with time. As such, we would like to propose updating some attributes within the formula as proposed in LIP-9.

These changes are aimed at :

  • Making ZilSwap pool APRs more competitive with other DEXes and help attract more people into the Zilliqa ecosystem
  • Increasing the benchmark for pools to ensure top tokens get the proper incentives

How are the parameters updated :

  • (Qualifying Factor) Minimum Liquidity for Tokens to Qualify : Increase from 500k → 3m ZIL
  • (Factor 1) Max AP per pool : Increase from 5 AP → 8 AP
  • (Factor 2) Liquidity Factor : Increase from 3m → 3.5m ZIL
  • (Factor 3) Volume Factor : Remains at 0.01 (No Change)

This update :

  • Continues to reward token pools as long as they meet the above criteria (non-cannibalistic in nature as individual projects can work towards a certain set of goals)
  • Increases the max amount of ZWAP rewards a pool can get (5 AP → 8 AP cap)
  • Does not affect the reward amount the ZWAP-ZIL pool gets (will remain at 40 APs)

We are looking to put this proposal up for voting this week, and have it in effect by Wednesday, 27 October should it be voted through by ZWAP holders.


In my opinion you should increase liquidity pools to 10mio Zils. Then we use again a voting system to put 3 or 5 projects into the zwap pool for a month.


Honestly I feel that the community is very Unhappy with ZWAP right now, we the early LP Providers have lost a lot of our ZIL because there was no reason for people to Hold their rewards, those tokens got sold as soon as they received them, and ZWAP has become a big failure. so far I have lost more than 50%. on my ZIL in this pool,

Before future Rewards and Future incentives gets discussed, I feel that ZILSWAP needs to address this issue. we need to force ZILSWAP to implement an Urgent STAKING Mechanism/Program of ZWAP with a special compensation for LP Providers, to try to recover some of our lost ZIL.

another option could be to do like UNISWAP or SUSHISWAP, where they only distribute 1/3 of the gains and the remaining of the Rewards are to be claimed in 6 months, slowing down the downtrend and giving some time for ZILSWAP to show future use of the token and incentivize holding it long term.


We need ZWAP STAKING, first, if you want us to continue voting and approving these proposals, I understand we want to increase the Rewards for the largest pools and make it more challenging to enter on the rewards, that is amazing, but who will stop the top pools from continue DUMPING their ZWAP, give us a reason to HODL, throw us a Bone, offer a percentage for hodling Zwap. Staking with a good % reward and something added for LP Contirbutors, so more people contributes to Pools, and Hold ZWAP to try to turn the price trend around, is not Fair that we the Early LP providers continue getting punish week after week for trying to help the ecosystem.


No, I still want my rewards. As they come. More utility for ZWAP, yes. Do not stop the rewards though. I’ve been a LP from the beginning as well. I’ve lost ZIL, I’ve also made ZIL by reallocating my assets. That is up to the individual investors to take the risk to be a LP. I’d rather not have to keep doing that, especially after the rules keep getting changed. Stopping the rewards will have a detrimental effect of ZWAP.

I would be pulling my assets out of all the LPs I contribute to if the rewards get stopped or postponed.


I agree, don’t stop the distribution, let’s find ways to create more use, I honestly hope the ARK NFT platform only works on Zwap, that would be a way to promote it’s use.

Another issue I see is going from 500k to 3 Millions on the liquidity to qualify, that is a 600% increase to qualify, why not make it
1.5 millions and then if needed we can always have a voting to increase it.


This system fucked us since implemented. Small changes will not change the situation. No utility or governance or any purpose for ZWAP. Don’t forget to ban me from here too, the same way you removed me from the telegram group :rofl: :rofl:
The emission of ZWAP should be postponed ASAP. We both know you can’t buy back enough to stop the price plummeting so postponing it will at least give us a break.


Hey guys, thanks for all your feedback! To keep it more streamlined, please try to stay on topic and discuss the proposal on hand.

Features such as staking, single-side liquidity, amplified AMM have already been included within our roadmap and will require the ZilSwap V2 smart contract upgrade. This is a massive undertaking and will require careful planning and execution, especially since the community’s funds are at stake.

If there are any community members who can buidl, and want to help expedite the development of ZilSwap, please contribute directly to the ZilSwap Github repo, and we will help to review and deploy.


Heard! It is a big jump % wise, but we set it to 3m ZIL (~$285k USD) because the initial benchmark was very low to begin with (500k ZIL = $50k USD).

P.S. ZWAP will be only one of three tokens supported on ARK


I second this and upvote ++

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OK, Let put it up for Voting and see how many Votes we get, let’s hope this attract more investors on the large pools and they decide to migrate more funds thru the bridge.

Thanks for the Input on the Roadmap and different ideas that you have to bring us value for Zwap and Zilswap community.


3M?! Damn, so how long until these changes get implemented? Since I’m going to have to redistribute AGAIN, to get the rewards I want.

Postponing the emission of rewards is the most asinine idea. You don’t start THEN stop rewards and expect a community to grow….

Lets put this proposal for Voting and see what the community decides. maybe the larger reward for the bigger pools will incentivize the Ethereum Bridged assets to stay and continue contributing to the Zilswap ecosystem rather than have them withdraw all of it at the end of the Bonus period.

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