About WePiggy LockDrop
1. LockDrop Introduction
Based on what WePiggy’s core development team mentioned in the proposal of Optimism Governance Fund, WePiggy’s core development team will develop the “LockDrop” function to achieve the purpose of locking more funds in the Optimism ecosystem, giving users more freedom of participation, and giving appropriate rewards based on their contributions.
1.1 Product Description
WePiggy will set up 3 pools with different lock-up periods for users to choose according to their actual situation, namely: 30 days, 90 days and 180 days.
Users can deposit their pUSDC tokens into one or more of these pools to earn token incentives.
However, once the user deposits funds into a pool, the user cannot withdraw the principal before the lock-up period expires. If the user insists on withdrawing his principal before the lock-up period expires, he needs to pay 4% of the principal as a penalty, and the penalty will go into the community treasury as protocol income.
According to the initial proposal submitted by WePiggy core development team to the Optimism community and the results of communication with the Optimism team, to attract more funds to be retained in the Optimism network for a long time, this event will focus on incentivizing the 180-day lock-up pool.
Notice:
1 ) pUSDC is the deposit receipt that users automatically get when they deposit USDC in the WePiggy lending protocol.
USDC contract address: 0x7F5c764cBc14f9669B88837ca1490cCa17c31607 (OP mainnet)
pUSDC contract address: 0x811Cd5CB4cC43F44600Cfa5eE3F37a402C82aec2 (OP mainnet)
2 ) The pUSDC participating in LockDrop will not receive the WPC incentive for deposit mining. This part of the reward will be obtained by the mining pool contract and will return to the community treasury after the event.
1.2 Incentive Details
1）OP Token Incentive
The longer the lock-up period is, the higher the distribution speed of OP token incentives, as follows:
After the deposit, the users can claim the OP token rewards they have mined so far at any time.
2）WPC Token Incentive
The WPC token incentive will only be given to the 180-Day pool.
To be eligible, users must deposit in the pool within 24 hours after the event starts, and keep it for 179 days until the event ends.
WPC Incentive Distribution Formula:
User’s Personal WPC Incentive = Total WPC incentive * (User’s Personal Lock-up Amount / Total Lock-up Amount of All Eligible Users)
1.3 Simple Guide
1. Go to https://app.wepiggy.com/ and switch to Optimism network
2. Deposit USDC in WePiggy, you will automatically receive pUSDC as a deposit receipt
3. Go to [LockDrop] pools
4. Select one (or multiple) pools to lock your pUSDC
5. Click Approve, after the approval is successful
6. Click [Deposit] and enter the amount
7. Click Confirm and wait for the transaction to succeed.
2. LockDrop— FAQ
2.1 What is a LockDrop?
Users can lock their pUSDC in one or several WePiggy LockDrop Pools to get $OP and $WPC rewards.
There are total 3 pools in different lock-up duration: 30-Day, 90-Day, 180-Day.
Different pools with different reward distribution speeds, so the longer you deposit into the pools the more rewards you’ll get.
Because of the limited reward time window, the earlier you deposit the more rewards you’ll get.
2.2 Why did we launch the LockDrop?
That is a proven approach to seize funds for the long term, it is not only good for Optimism ecosystem but also important to WePiggy for further construction.
It will also allow small depositors to get bigger rewards by locking longer time.
2.3 Timeline of LockDrop
30-day pool: starts at 16:00 (UTC+8) on August 3 and ends at 16:00 (UTC+8) on September 2
90-day pool: starts at 16:00 (UTC+8) on August 3 and ends at 16:00 (UTC+8) on November 1
180-day pool: starts at 16:00 (UTC+8) on August 3 and ends at 16:00 (UTC+8) on January 30, 2023
2.4 What assets does the LockDrop accept and why?
The LockDrop accepts pUSDC token only, which is a deposit receipt of your USDC deposits.
WePiggy choose pUSDC, rather than other assets, because USDC is the most widely used asset in DeFi, and we don’t have spare rewards to support the liquidity building of all assets.
2.5 How does the lock-up period multiplier work?
There are 3 pools for users’ choice, they are 30-Day, 90-Day, and 180-Day, the reward distribution speed of each pool is different.
The longer the lock-up period is, the higher the distribution speed of OP token incentives
2.6 Is there a difference between depositing on the first day or the last day?
Yes, the earlier you deposit the more rewards you’ll get, highly recommend users to participate from the beginning.
If you participate too late, you get less rewards than others but you have to lock your funds for the same time as other participants.
In addition, if you want to get WPC incentives, you must deposit pUSDC in the 180-day pool within 24 hours after the event starts, and keep it until the event ends after 179 days, in order to be eligible to share the WPC rewards.
2.7 When can I claim rewards?
OP rewards will be claimable by users at any time starting from Day 1.
The WPC token incentive will only be given to the 180-Day pool.
To be eligible, users must deposit in the pool within 24 hours after the event starts, and keep it for 179 days until the event ends.
WPC Incentive Distribution Formula:
User’s Personal WPC Incentive = Total WPC incentive * (User’s Personal Lock-up Amount / Total Lock-up Amount of All Eligible Users)
2.8 Can I withdraw my principal at any time?
You cannot withdraw your principal until the end of the lockup period.
If you insist to withdraw your principal before the end of the lock-up period, you must pay a penalty of 4% of your principal.
2.9 Can I lock pUSDC that I am currently using as collateral or borrowing against?
Yes! But the part of pUSDC tokens which you deposited into LockDrop pools cannot be used as collateral.
If you deposit some pUSDC tokens into the pools, your borrowing limit will be reduced accordingly, and if you have outstanding borrowings, pay attention to your used ratio to avoid unnecessary liquidations.
2.10 How do I get pUSDC?
Go to https://app.wepiggy.com/markets and deposit your USDC, then you will receive pUSDC automatically as a receipt for depositing into WePiggy — Optimism.
To participate LockDrop, next step, you should deposit the pUSDC into LockDrop pools.
2.11 How to move USDC from other networks to Optimism?
You can leverage cross-chain bridges to do that.
In WePiggy’s application, click [Bridges], there are 5 bridges for your choice, namely:
- Official bridge
- cBridge
- Hop
- Connext
- BoringDAO
Here is a guide for bridging from Ethereum via the official bridge: https://www.yuque.com/zgryhn/uy6f0y/limxvr
2.12 Do I have to pay for the LockDrop?
No, you don’t need to pay for it, just you have to lock up your pUSDC tokens.
You will be able to withdraw 100% of staked pUSDC after lockup time.
2.13 How to view pUSDC balance?
pUSDC address: 0x811Cd5CB4cC43F44600Cfa5eE3F37a402C82aec2
You should manually import it into your wallet.
