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Incentives
To kickstart the trading flywheel on Carmine Option AMM, we're heavily incentivizing usage with CARM tokens.
Total and maximum supply of CARM tokens is 100 million.
Airdrops are distributed monthly, we are planning to transition to weekly airdrops when we're able to deploy airdrop code in Cairo 1 on StarkNet, which is not yet technically possible. The distribution cutoff for the first distribution was May 7th.
The airdrop criteria are decided by governance, with all CARM holders having proportionate voting power and discussed openly. Feel free to propose different criteria.
The criteria for the second distribution are discussed in the Discord channel #airdrop-week5-week8. The leading proposal is currently suggesting this:
- 312 500 for traders
- 312 500 for stakers
- 250 000 for community projects
The amount airdropped will be proportionately distributed between everyone who has staked in the Liquidity Pool in a given epoch. You have to stake for the whole epoch, with epochs being weekly, starting on Monday and ending on Sunday.
The precise proposed allocation for the second month is 156 250 CARM to the ETH/USDC put pool (where you deposit USDC) and 156 250 CARM to the ETH/USDC call pool (where you deposit ETH).
To compute a lower bound for the amount of tokens you'll be eligible for, take into account the cap on the liquidity pool we currently have in place – 30 ETH for the call pool and 50k USDC for the put pool.
Let's assume full utilization of the liquidity pool, so 30 ETH staked for the full month. You staked 1 ETH and will be eligible for 312500/30 ≈ 5208 CARM tokens.
To reiterate, the total supply of CARM is 100 million. For staking 1 ETH for a month, you are eligible to claim at worst 5208 CARM.
Future market cap assumptions and the subsequent multiplication is left as an exercise to the reader.
Same as with ETH. All USDC stakers are eligible for 312 500 CARM tokens in the current distribution.
For more details, refer to Inside Carmine Options AMM: A Complete Breakdown of Token Distribution and Allocation
Trading on Carmine Option AMM is incentivized with CARM tokens. These are awarded to traders based on the amount of premia they pay (when going long) or receive (when going short).
In the proposed allocation for the second month (May to June), a weekly pool of 78,125 CARM tokens is made available to traders. This is divided equally between calls and puts, with each category receiving 39,062.5 CARM tokens.
Assuming you trade an equivalent of 1 ETH in premia, and the total traded volume for that week is 50 ETH in calls:
Your eligible CARM = (Your Trading Volume / Total Trading Volume) * CARM allocated for calls
Plugging in the numbers:
Your eligible CARM = (1 ETH / 50 ETH) * 39,062.5 CARM = 781.25 CARM tokens.
This calculation gives you an estimate of the CARM tokens you could be eligible for when trading on Carmine Option AMM. Please note that the actual amount may vary based on the total trading volume and the allocation of CARM tokens.
For more details, refer to Inside Carmine Options AMM: A Complete Breakdown of Token Distribution and Allocation.