Protocol/Gauge Name:
Algem - ETH/pufETH SoneX Vault Incentive Program
Protocol Description:
Algem is a decentralized protocol built on the Soneium and Astar Network, designed to help users earn rewards from their assets while maintaining liquidity.
The platform’s core products include Liquid Farming, which allows users to stay liquid On AMMs by adding liquidity to pools and receive lfETH tokens, earning trading fees and ALGM rewards and Liquid Staking, where users can stake ASTR tokens and receive liquid xnASTR for use in DeFi, and Algem aims to enhance profitability and flexibility, making DeFi more accessible and user-friendly.
This partnership with PUFFER introduces the ETH/pufETH SoneX Vault Incentive Program” aiming to enhance the liquidity and user engagement of PufETH within the Soneium ecosystem.
Protocol Overview:
Liquid Farming is a new product of Algem that allows users to maintain liquidity while participating in farming on AMM pools.
Here’s how it works (Example: ETH/pufETH Vault):
- A user deposits 1 ETH and approximately 1 puffETH into the vault. This liquidity is sent to a partner AMM (eg. SoneX).
- The user receives liquid lfETH tokens, equivalent to their ETH deposit (e.g., 1 lfETH for 1 ETH).
- They start farming trading fees from the pair, as well as ALGM incentives, proportional to their vault share.
- At the same time, the user can utilize their liquid 1 lfETH token for additional earnings—for example, adding it to the ETH/lfETH pool to earn trading fees.
Target Audience:
- Liquidity Providers: Earn transaction fees by depositing ETH/pufETH liquidity tokens.
- pufETH Holders: Enhance yields through liquidity mining and maintain exposure to staked assets.
- Yield Farmers: Maximize returns with the chance to participate in future SONEX airdrops.
Key Features:
- Liquidity Mining: Users can participate in the ETH/pufETH pool through the Algem Vault to earn transaction fees and ALGM incentive rewards.
- Using Vault Liquid Tokens: Users will be able to utilize liquid lfETH tokens from the ETH-pufETH SoneX Vault to further increase their earnings.
** Incentives and Distribution Method:
To boost participation and engagement, we introduce the following incentive mechanisms:
Trading Fees: All transaction fees generated through the ETH/pufETH SoneX pool will be distributed to liquidity providers. Distributed once per ERA (24 hours) through the Algem interface.
ALGM incentives: ALGM (Algem token) incentives of 50,000 ALGM have been allocated for this vault for a 4-month period. Distributed once per ERA (24 hours) through the Algem interface.
ACS campaign rewards*: A campaign run by Soneium and Astar Network, where users accumulate ACS points for specific activities (eg.adding liquidity to the ETH/pufETH pool), which will later be exchanged for ASTR tokens. Will be distributed by the Soneium team after the campaign ends.
SONEX Native Token Rewards*: Participants in the mining process will receive SoneX Points as rewards for their contributions, which can be utilized for platform governance and ecosystem incentives. Will be distributed by the SoneXteam after the campaign ends.
PUFFER Additional Rewards: PUFFER offers unique reward mechanisms for participants, enhancing the appeal of the pool.
Future Airdrops Eligibility: Participation in the vaults grants the right to take part in future airdrop initiatives from Algem and SoneX*.
*Important: ACS Points, SoneX Points earned through Liquid Farming won’t be displayed on the corresponding dashboards directly when you connect your wallet. Instead, our Vault address earns these points.Thus, your share of these rewards will be determined as follows:
Your share in the vault (based on Algem Points at the snapshot time) / Total points (e.g., ACS) accumulated by the vault.
We will share your earned points with the respective teams after the campaign ends, and you will receive rewards accordingly.
Vault Addresses:
- Recipient Chain: Soneium
- Vault Address: 0xdaeF330718eB9Db141DaB811E57d072e29e54fEB .
Incentive Impact Statement:
The token incentives introduced through the ETH/pufETH SoneX Vault Incentive Program are poised to significantly drive user adoption and deepen engagement within the Algem ecosystem. By offering a robust mix of rewards—including trading fees, ALGM incentives, ACS campaign points, SONEX native token rewards, and PUFFER additional rewards—we aim to attract a broad spectrum of participants, such as liquidity providers, pufETH holders, and yield farmers. These incentives provide immediate financial benefits, making participation in the Liquid Farming vaults highly appealing, while simultaneously increasing the total value locked (TVL) and enhancing liquidity depth across the platform.
Beyond short-term gains, our incentive structure is designed to encourage sustained user interaction and loyalty. The issuance of liquid lfETH tokens, which users can leverage in additional DeFi strategies (e.g., adding to the ETH/lfETH pool for extra trading fees), motivates participants to remain active and experiment within the ecosystem. This not only amplifies user engagement but also fosters a sense of ownership, as participants are rewarded with opportunities to contribute to platform growth and, eventually, governance through their earned tokens and points.
From a long-term perspective, this multifaceted incentive system ensures the sustainability of the Liquid Farming vaults by maintaining a steady influx of liquidity providers—crucial for operational efficiency and stability. By tying immediate rewards to future opportunities, such as eligibility for airdrops from Algem and SoneX, we are building a committed community invested in the platform’s success. This strategic alignment of incentives supports the goals of the current campaign while establishing a solid foundation for future growth and collaboration in the DeFi space.
Eligibility Verification:
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