We are introducing “Co-Farming with ALEX” exclusively for the STX/ALEX LP tokens that will be unlocking during cycle #32 and beyond.
Co-Farming rewards our most loyal community Bitcoin DeFi members that have been staking with us from the very beginning.
Typically when your staking/farming cycle ends, you are able to harvest your rewards as well as principal in the form of LP tokens. However, we will be offering a unique alternative through co-farming with ALEX.
What does this mean?
With Co-Farming you will be given the option of taking the unlocked LP tokens to:
Example: If you commit 100 STX then you will receive the STX/ALEX reward every cycle. At the end of 32 cycles, if STX/ALEX pool capital exceeds the impermanent loss, then 100 STX will be returned to your wallet.
Co-Farming allows our most dedicated community members to benefit by receiving STX/ALEX yield while protected from Impermanent Loss via the capital of the STX/ALEX pool (see appendix). Co-Farming is not available to new entrants, but only to those who are concluding their STX/ALEX rewards cycles.
For the first Round of Co-Farming, ALEX Foundation has committed 15M ALEX. Therefore the first round will end once this 15M ALEX is exhausted. This equals 7.5% of the the Foundation’s current reserve.
We don’t know how many cycles this will take to reach this limit. We are also open to the possibility of further rounds of co-farming, depending on how well round one is received.
We strive to be adaptable in the current bear market and responsive to feedback from the ALEX community. The community and Foundation will work together to bridge the crypto-winter.
For more information, please listen to the AMA with our Discord community recorded live on June 11, 2022:
Please note that Co-Farming is not a riskless commitment. For ALEX to cover all Impermanent Loss it can not exceed the capital of the STX/ALEX pool. Impermanent Loss is guaranteed by the pool capital alone.
At the conclusion of co-farming, the Foundation will use it’s pool rewards and the $ALEX commited to the pool to cover Impermanent loss. Any rewards remaining will be burned.
There is tail risk, meaning in an extreme event, if the Impermanent Loss exceeds the capital of the STX/ALEX pool, then the STX committed will take a loss as well, which maybe offset partially or entirely by the cycle rewards received.
*Note: Co-farming is unique in that the rewards will be automatically harvested and sent to your wallet every cycle.
Important Note: The co-farming program has officially ended.