Understanding Smart Farms
Last updated
Last updated
In Splash Protocol the inflation of SPLASH tokens goes to liquidity providers. The amount of inflation for each certain liquidity pool is controlled by the Splash DAO. Smart Farms is a system for fair voting and inflation distribution.
The following diagram shows how the Splash inflation mechanism works:
The voting process will persist through the entirety of the SPLASH emission period, with updates occurring every 7 days. Consequently, the allocation weights will be adjusted in tandem by DAO participants. Users have the flexibility to distribute their voting power across one or multiple Smart Farms.
The voting process takes place in the Splash DAO Dashboard interface which will be provided once the protocol is launched.
A Smart Farm weight translates into how much of the weekly SPLASH inflation it receives.
For example, if we have 3 Smart Farms in the system and one of them has 50% weight then its weekly reward rate will be calculated as weekly_emission_rate * 0.5.
If you are building on Cardano and want to incentivize your users with SPLASH rewards you can create a Smart Farm on top of your liquidity pool.
The process of Smart Farm creation will be added here once the Splash V1 is launched.
Once the Splash protocol is launched Splash development team will create several Smart Farms on top of liquidity pools with the most valued Cardano Native Assets. If you would like us to create one for you, connect via Discord.
Those weights show where the SPLASH inflation goes. It allows the DAO to control where most of the liquidity should go and balance it.
Anybody who has locked ADA/SPLASH 20/80 LP tokens and acquired veSPLASH can vote to direct its voting power towards one or multiple Smart Farms.
Once the protocol is launched the user interface for voting will be provided.
You can change your voting weight whenever you want. The system will account for your voting power at the end of each 7 days.
It increases your veSPLASH balance. This doesn't automatically account for your current Smart Farm weight votes. You need to re-vote to account for the newly acquired voting power.
