TANGOnomics
Last updated
Last updated
TANGO was launched on Fjord on October 21st 2024.
The first trading liquidity was seeded on Balancer a few days later.
TANGO contract (Arbitrum): 0xC760F9782F8ceA5B06D862574464729537159966 oTANGO contract (Arbitrum): 0x007606064f8A40745336F91a1E4345900143756b
TANGOnomics aims at deepening TANGO liquidity and incentivizing growth by rewarding both stakers and traders, the main players in the Contango ecosystem.
Let’s look at how both are rewarded.
After the initial sale on Fjord, an 80/20 pool on Balancer was seeded to create the first spot liquidity for TANGO, on Arbitrum.
Providing liquidity to the 80/20 Balancer pool is rewarded, to allow initial holders of TANGO (both sale participants and oTANGO receivers) to put their holdings to work and earn some APR.
More specifically, TANGO holders who provide liquidity on Balancer can stake and lock their LP tokens on Contango. When locking, users will be shown a veCBPT balance based on the amount and duration of the lock. Please note that each user’s balance of veCBPT decays linearly over time. Although veTANGO won’t have a voting mechanism at the start, we opted for the veCBPT naming because of its similarities with other veToken designs.
For simplicity, let’s call staker any user with a veCBPT balance. All staking and locking actions occur on Arbitrum.
By becoming Contango stakers, users will receive the following rewards:
Balancer trading fees. While locking on Contango, users keep receiving a share of trading fees from the TANGO/wstETH pool each time a swap is made.
BAL rewards from Balancer. While locking on Contango, users keep receiving BAL incentives too
Contango protocol fees. Initially, 100% of the protocol revenue will be distributed to stakers, who are compensated for providing liquidity on Balancer and facing the risk of impermanent loss. In the future, a portion of protocol revenue may be redirected to the Contango treasury. Fees are distributed based on each user’s share of the total veCBPT locked.
Since each staker’s balance of veTANGO decays over time until the end of the lock, it’s worth noting that both the amount locked and the duration of the lock play a role in determining how fees are distributed.
See the Staking section for more details.
Traders are entitled to a share of annual TANGO rewards, based on their balance of Contango points.
Weekly Contango points from Phase 2 were distributed up until the 29th of October 2024 at 23:59 UTC (1M points per week + extra points for bug reporting).
After TANGO launched via Fjord and the Balancer pool was seeded, protocol fees were enabled on the 4th of November 2024, and Phase 3 started. It will last three months. Each three months a new Phase begins.
Points in Phase 3 entitle users to a share of the annual TANGO rewards. Each year, for the next 3 years, 2% of TANGO supply is allocated to these rewards. Points in Phase 3 are accrued based on the amount of $ traded, as per the following formula:
$1 in adjusted volume traded = 1 Contango point
Adjusted volume is defined as the sum of the volumes on all trading pairs, protocols, chains, adjusted by the coefficient C (where C=1 for non-correlated trading pairs, and C=0.2 for correlated ones). In other words, volume on correlated pairs counts 5 times less, as these pairs have higher leverage and less price risk.
To spur ecosystem growth, both staking and trading are further incentivized via an XP system which classifies users into different tiers. Users are entitled to a multiplier on their Contango points and a specific discount on trading fees depending on these tiers, as follows:
If there are ongoing partner deals on points multipliers, these will stack up on the current multiplier of each user.
The balance of XPs is determined by the amount traded and the share of veCBPT over the total locked veCBPT, as follows:
In other words, your total XP balance is the sum of the XP you get from trading and the XP you get from your share of total veCBPT.
The veCBPT balance, the 30 day volume and hence the XP balance are all computed daily at 00:00 UTC.
You can see your XP tier and fees discount at the top-right of the app.
Disclaimer: the Contango team reserves the right to unilaterally modify the above-mentioned parameters (XPs, multipliers, percentages, discounts) if it deems it relevant for the benefit of the protocol.
