Polkaswap Polkaswap PSWAP rewards
Polkaswap’s PSWAP reward model on SORA separates fee-derived distributions to liquidity providers from activity-specific bonuses. Eligible purchases of newly minted XOR through the token bonding curve are another bonus route. Strategic bonuses vest according to PSWAP burned from usage fees, so earning an allocation does not establish when the full amount can be claimed.
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How do the PSWAP reward routes differ?
The Polkaswap FAQ’s fee-distribution model converts swap fees paid in XOR into PSWAP, burns that PSWAP and remints a portion for liquidity providers. Fee-derived LP rewards and strategic bonuses use separate allocations within this burn-and-remint model.
| PSWAP route | Participant activity | Reward mechanism | Conditions |
|---|---|---|---|
| Fee-derived LP rewards | Supplying liquidity to an XOR-paired pool | PSWAP reminted from swap-fee burns | Rewards depend on fee-generating trading activity and the provider’s share of pool liquidity. |
| LP Farming Bonus | Maintaining qualifying XOR-paired liquidity | A PSWAP bonus subject to strategic vesting | The SORA Rewards guide specifies at least 3,000,000 XOR in the provider’s liquidity position in an XOR-paired pool and warns that the provider loses farming bonus vesting if that position falls below the threshold. It lists doubled bonus rewards for XOR-VAL, XOR-PSWAP, XOR-DAI, XOR-ETH and XOR-DOT. Polkaswap’s March 1, 2021 announcement budgeted farming allocations over approximately 1,400 days. These eligibility rules do not confirm whether new farming bonuses currently accrue; the planned allocation period does not establish an end to vesting of previously earned bonuses or to fee-derived LP rewards. |
| TBC purchase bonus | Buying newly minted XOR with eligible reserve assets through the token bonding curve | A reserve-dependent PSWAP bonus subject to strategic vesting | Under the March 9, 2021 reward design, XOR purchases paid with VAL or PSWAP do not qualify for bonuses. Lower reserves at the time of purchase produce larger bonus rewards under the documented calculation. |
| Historical market-maker rebates | Qualifying trading activity under the documented rebate program | PSWAP proportional to trading volume | The SORA Rewards guide marks this program inactive. |
| SORA validator and nominator rewards are paid in VAL under separate staking rules. | |||
The farming minimum and doubled rewards belong to the specified bonus program. They do not establish a universal threshold or multiplier for every PSWAP reward category.
What makes a bonus claimable?
Strategic Bonus Vesting releases bonus PSWAP at a speed that depends on PSWAP burned from Polkaswap usage fees. An unvested allocation records rewards awaiting release; only vested, unclaimed PSWAP is available to claim.
The launch design described in SORA’s Rewards guide increases the strategic-bonus share of daily burned PSWAP linearly from 0% to 55% over five years. Those percentages use daily PSWAP burns as their base. The five-year schedule describes the program’s allocation of burns, with no fixed completion date for each participant’s bonus.
How does a TBC bonus affect a purchase comparison?
TBC purchases of newly minted XOR add reserve assets to the bonding curve. For eligible purchases, the PSWAP incentive rewards that contribution, with the documented calculation awarding more when reserves are lower. The XOR execution price and the PSWAP bonus are separate quantities.
SMART selects a price without including PSWAP bonus rewards in its calculation. A larger TBC bonus therefore does not establish that the XOR purchase itself has a better quote than a pool trade. Compare the quoted XOR output and transaction costs separately from the bonus entitlement, including its vesting conditions.
What else affects a liquidity position’s return?
A liquidity position can underperform holding the deposited tokens when their relative prices change, a difference known as impermanent loss. Fee-derived PSWAP and eligible bonuses can offset part of that difference, but the amount released and PSWAP’s market price determine their value. An unvested bonus cannot be treated as immediately available proceeds when comparing returns.