# Mining

Yield Farming has recently been the focus of interest and discussion in the broader crypto community, initiating a new era for DeFi via liquidity mining.

The popular formulas of current liquidity mining are:

**Daily output per user = Daily output of the mining pool \* Staked amount/Total staked amount**

Under this model, the whales become the top winners, they can easily take away nearly all liquidity rewards and irrational sellout their yield. And this is a harsh predatory game for shrimps. With the rise of yield farming, whales are the most common concern for DeFi farmers.

To solve this problem and toward a more sustainable ecosystem of DeFi, we create the **Liquidity Mining with algorithmic adjusted.**

## Mining Power

In DEGO, we used a set of deterministic algorithms for liquidity mining, convert the LP token staked by users into **POWER** (similar to the hashrate of Bitcoin mining), and getting earnings through them. Under this model:

* **Daily output per user = Daily output of the mining pool \* POWER / Total POWER**
* **POWER = Staked LP token amount \* Coefficient of correspondence**

### Calculation Formula of **POWER**

We divide users into three ranges according to their staked amount:

* a) Worst range: users with the most staked amount = 1 time rewards
* b) Best range: users with the intermediate staked amount = 5 times rewards
* c) Common range: users with the smallest staked amount = 3 times rewards

For example, User A staked 10 LP Tokens and is currently in the common range, then his **POWER** is 10 \* 3 = 30 **POWER**

### **I**nitial Three Ranges

The numbers of the initial three ranges are \[10, 10, total number-20]. As the total number of users increases by 100 people, the worst range and the best, range increase by 10 slots, up to a maximum of 50 people.

| Total Number of Users |  Worst |  Best  | Common |
| :-------------------: | :----: | :----: | :----: |
|           50          |   10   |   10   |   30   |
|          101          |   20   |   20   |   61   |
|          200          |   30   |   30   |   140  |
|          300          |   40   |   40   |   220  |
|          400          | 50 max | 50 max |   300  |
|          1000         | 50 max | 50 max |   900  |

* **If tokens staked for minng stay "staked" for less than 72 hrs, 10% of the rewards are deducted if you choose to Harvest then the deducted rewards will be transfered to the Dividend Pool.**
* **Mining Production halved in every 7 days.**

## Liquidity Mining Pools

* Pool 1: DEGO-ETH UNI-V2 LP -- 20% of the Mining Pool (4,200,000 DEGO)
* Pool 2: DEGO-UNI UNI-V2 LP -- 2.5% of the Mining Pool (262,500 DEGO)
* Pool 3: USDT -- 5% of the Mining Pool (1,050,000 DEGO)
* Pool 4: WETH -- 5% of the Mining Pool (1,050,000 DEGO)

## How to Participate in Liquidity Mining

![](https://3874348249-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MHgsPwMJc_LGS3bBxzQ%2F-MHof-m8kccmh4kNVg_-%2F-MHofJmhTgFeX5B_hhZM%2Fimage.png?alt=media\&token=a10b346b-5c3e-4694-98df-fa3fdf7d9714)

![](https://3874348249-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MHgsPwMJc_LGS3bBxzQ%2F-MJNhavTJFhBKc821I4L%2F-MJNhkAA5Zx3DvuMhuX1%2Fimage.png?alt=media\&token=a2b2da9f-8835-4a32-9af2-a6528c0d78cd)

## How to Obtain LP Token

1\) Open the Stake and choose a LP pool

![](https://3874348249-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MHgsPwMJc_LGS3bBxzQ%2F-MJNj-S_1h9WlJVSdAEt%2F-MJNjRu3B-flx8wWJe4m%2Fimage.png?alt=media\&token=f2c2d72b-6ff5-4fa2-9c9b-786d93398dd3)

2\) Click the link and jump to Uniswap page

![](https://3874348249-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MHgsPwMJc_LGS3bBxzQ%2F-MJNj-S_1h9WlJVSdAEt%2F-MJNjVLQCj225zPraB4U%2Fimage.png?alt=media\&token=b16fe5ff-2d82-429c-85ab-9d459d9fee8b)

3\) Add Liquidity

![](https://3874348249-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MHgsPwMJc_LGS3bBxzQ%2F-MJNj-S_1h9WlJVSdAEt%2F-MJNjYW5xgjPgV4VeCZH%2Fimage.png?alt=media\&token=31fd90ca-273c-4232-bf58-7e38afac4250)

4\) Receive LP after confirmation

![](https://3874348249-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MHgsPwMJc_LGS3bBxzQ%2F-MJNj-S_1h9WlJVSdAEt%2F-MJNjbRf7wbuk-774KjE%2Fimage.png?alt=media\&token=f5c731a8-3dd8-4635-a7d6-d3edb8a0a67f)