2.1.3 Liquidity Tiered Rewards

To encourage more users to provide liquidity, LuckySwap has designed a liquidity tiered reward system. Depending on the liquidity depth provided by the user, the platform offers different levels of rewards. For example, the more Memecoin liquidity a user provides, the higher the reward they receive. Rewards include platform tokens, additional Memecoins, or exclusive blind boxes, among others.

Liquidity reward levels are allocated based on the amount of Memecoin and liquidity depth provided by the user:

Where:

• R is the user's reward level;

• Luser is the Memecoin liquidity provided by the user;

• Ltotal is the total liquidity from all users in the pool;

• Wtotal is the total reward pool of the liquidity pool.

This mechanism is designed so that rewards are proportional to the liquidity provided by users. The more liquidity a user provides, the greater the reward they receive, effectively incentivizing users to provide deeper liquidity, thereby ensuring sufficient depth in trading pairs and market stability. At the same time, the liquidity tiered rewards help the platform attract more funds, making the Memecoin market more active, reducing price fluctuations, and improving the overall health of the market.