Staking LP Tokens
The values and parameters on this page are preliminary and subject to change before launch.
Liquidity Provider (LP) tokens can be staked in the vote escrow system just like regular MSIG tokens. This allows liquidity providers to earn both DEX swap fees and staking rewards simultaneously.
When liquidity is provided to MSIG trading pairs on decentralized exchanges, LP tokens are issued to represent the provider's share of the pool. These LP tokens can then be locked in the vote-escrow system to earn additional rewards on top of standard trading fees.
LP Token Equivalence
LP tokens are treated identically to regular MSIG tokens in the vote escrow system:
Weight
1,000 MSIG in LP = 1,000 voting weight
1,000 MSIG = 1,000 voting weight
Multiplier
lockMonths / 12
lockMonths / 12
Calculation
MSIG x (lockMonths / 24)
MSIG x (lockMonths / 24)
Discount
Same formula applies
Same formula applies
Three Reward Streams
LP stakers benefit from three separate reward streams:
1. Standard Staking Rewards
The same reward pool is shared by all veMSIG holders. Each holder's share is calculated based on staked amount and lock-duration multiplier, in the same way as for regular MSIG stakers. These rewards are funded by the portion of treasury buyback activity allocated to the Staking Treasury.
2. LP-Specific Bonus Rewards
Additional rewards funded exclusively from the Community pool (8% of total supply). This bonus is available only to LP stakers and exists on top of standard staking rewards. The purpose is to incentivize liquidity provision during the early growth phase. These LP incentives vest linearly over 48 months from launch, releasing daily.
3. DEX Trading Fees
As a liquidity provider, a share of the swap fees generated by trading activity in the pool is earned automatically. These fees exist outside the Meta Signals tokenomics system and are paid directly by the decentralized exchange.
Three reward streams: standard staking rewards, LP bonus rewards, and DEX trading fees.
Why LP Incentives Exist
The goal of LP incentives is to bootstrap liquidity and ensure the MSIG token remains liquid and tradeable. Deep liquidity benefits everyone in the system because:
Traders get better prices with less slippage
The token becomes more accessible to new holders
Price stability improves as the pool grows
By providing liquidity, the overall ecosystem functions more smoothly, and liquidity providers are compensated accordingly through multiple reward streams.
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