# 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

![](/files/-MHofJmhTgFeX5B_hhZM)

![](/files/-MJNhkAA5Zx3DvuMhuX1)

## How to Obtain LP Token

1\) Open the Stake and choose a LP pool

![](/files/-MJNjRu3B-flx8wWJe4m)

2\) Click the link and jump to Uniswap page

![](/files/-MJNjVLQCj225zPraB4U)

3\) Add Liquidity

![](/files/-MJNjYW5xgjPgV4VeCZH)

4\) Receive LP after confirmation

![](/files/-MJNjbRf7wbuk-774KjE)


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