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Read this first: How to earn as a liquidity provider

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Liquidity provision overview

  • Earn a 20-30% fee from the sale of every jackpot ticket. We’re targeting 107% APY on USDC, in USDC.
  • Early liquidity providers get more Megapoints, and can deposit before we cap further deposits to keep LP fees high
  • Security is our top priority. Our smart contract is audited by Cantina, which is trusted by Uniswap and Coinbase. Jackpot drawings are provably random through Pyth Entropy. Pyth secures over $7B in assets. Our team is doxxed and ex-Uniswap.
  • There is no lockup. You can edit or withdraw liquidity at any time, and it’s processed at the next daily jackpot run.

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Add Liquidity at megapot.io/liquidity

  1. Go to megapot.io/liquidity
  2. Choose how much USDC you want to deposit.
  3. Choose a percentage to put in range.
    1. This determines how much money is at risk for every jackpot.
    2. The expected value of this position in range is neutral, such that you earn when LPs collectively win the jackpot, and lose when a player wins the jackpot.
    3. When users enter the jackpot, they are “buying” back your pre-purchased tickets. If users buy more tickets than the initial jackpot, then LPs have no risk.
    4. Try this calculator to see returns vs variance
  4. Your liquidity is locked until the end of the jackpot, after which points are calculated.
    1. LPs earn 100 Megapoints per day for every 1000 USDC in range.
    2. LPs earn 1 Megapoints per day for every 1000 USDC that isn’t in range.
  5. After every jackpot, your position is rebalanced.
    1. Position in range % does not fluctuate. Fees accrued to your total position and are rebalanced.
After you deposit liquidity, please join our Telegram chat to get updates on jackpot results and any changes we may make. You can edit or withdraw liquidity at any time, though it gets processed at the next jackpot run. After which, you can then fully withdraw your liquidity.

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View liquidity position

The liquidity status page shows your current liquidity position. A liquidity position is composed of:
  • Total Supplied: This is the total amount deposited to Megapot.
  • Position in Range Percentage: This is the % of the total supplied contributed to the jackpot. If the total USDC supplied is 1000 and the position in range percentage is 10%, then 100 USDC will be added to the next jackpot.

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Edit liquidity position

  1. Go to the Liquidity page
  2. Select “Edit Position”
  3. You can supply more USDC, edit your position in range percentage, or do both.
    1. Supplying USDC takes place immediately.
    2. Your new position in range percentage goes into effect with the next jackpot.
  4. You earn Megapoints for this change at the beginning of the next jackpot.

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Withdraw liquidity position

  1. Go to the Liquidity Page
  2. Select “Withdraw all”
  3. Your position will be unlocked at the end of the current jackpot. You’ll see the status reflected under the “Changes Starting Next Jackpot” section.
  4. At that time, you can withdraw your liquidity position. Note that you will no longer earn Megapoints once your liquidity position is in withdrawal mode.

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FAQ

What position in range percentage can LPs set? LPs can set any number from 1-100%. In liquidity provisioning terms, you can think of the position in range percentage as the amount that’s in-range. Thus, if you select 33%, 67% of your liquidity is not earning fees, though it’s still earning Megapoints. When can I change my position in range percentage? You can change participation at any time and it’ll take into effect the next jackpot. How long is the LP commitment? LP commitment is as long as you want! You can withdraw at any time, withdrawal is processed next jackpot. LPs are rewarded with Megapoints every day their money is in range. When can I deposit liquidity? You can deposit liquidity on the first non-holiday weekday of every month, starting in May. We also open liquidity pools for deposits if the jackpot drops by 50% in a single day. Would it be advantageous for LPs just to only LP in the last minute? Eg. If they see there is significant tickets sold so there’s high yield No, any amount LP’d only takes into effect next jackpot. Also, LPs can only deposit liquidity during when liquidity deposits are open. This ensures stability in LP earnings. Where is the contract and audit? You can see details on the Smart Contract page.