DRV Incentives on Aerodrome: Everything You Need to Know

Michael Spain -

The DRV/ETH pools on Aerodrome are designed to support trading activity and liquidity depth for DRV on Base. This guide covers all the details you need to participate and maximize your rewards.

Incentive Overview

Incentives Duration: Jan 15, 00:00 UTC – Jan 28, 23:59 UTC

Total Incentives: 2 million DRV

Pool Breakdown:

    • DRV/ETH Full Range: DRV rewards distributed outside of Aerodrome (no bribes).
    • DRV/ETH CL200: DRV rewards distributed outside of Aerodrome, plus bribes for enhanced emissions (must be in range).

Rewards are distributed in addition to regular AERO emissions for liquidity providers (LPs).

How to Participate

  1. Bridge DRV to Base:
    • Go to Derive and transfer your DRV to your funding account.
    • Use the withdraw button to bridge DRV from Derive Chain to Base using the LayerZero bridge.
  2. Provide Liquidity. Deposit DRV and ETH into one of the incentivized pools on Aerodrome:
      • DRV/ETH Full Range
      • DRV/ETH CL200 (must be in range)
  3. Stake LP Tokens. LP tokens must be staked on Aerodrome to earn DRV and AERO rewards. Navigate to the staking page on Aerodrome to complete this step.

Why Choose the CL200 Pool?

The DRV/ETH CL200 pool offers:

  • DRV rewards distributed outside of Aerodrome.
  • Additional bribes, leading to higher emissions and greater rewards.
  • Enhanced liquidity depth and stability for the DRV token.

Note: To earn rewards in the CL200 pool, your liquidity must remain in range of the designated price band.

What About the vAMM Pool?

  • The DRV/ETH vAMM pool still earns DRV rewards distributed outside of Aerodrome.
  • Even after the epoch flip on Jan 18, 00:00 UTC, LPs will continue earning DRV rewards, even if Aerodrome’s UI shows 0% APY.
  • To maximize rewards, consider migrating liquidity to the incentivized DRV/ETH CL200 pool.

How Are Rewards Distributed?

  • DRV rewards are calculated transparently and will be claimable in the Aerodrome UI at the end of the program.
  • Rewards are distributed from the 2 million DRV incentive pool.
  • AERO emissions are streamed weekly as per Aerodrome’s standard reward mechanism.

How Do Aerodrome Bribes Work?

  • Bribes on Aerodrome are additional incentives used to enhance emissions for specific liquidity pools. Aerodrome bribes are extra rewards given to voters who support specific pools with their veAERO tokens.
  • Derive is actively bribing Aerodrome to increase emissions for the DRV/ETH CL200 pool, boosting rewards for LPs who participate in this pool.
  • Derive adds DRV as a bribe to the DRV/ETH CL200 pool. More votes mean higher AERO emissions for the pool, which boosts rewards for liquidity providers. Bribes make pools more attractive, benefiting both voters and LPs.

Frequently Asked Questions

  1. What are the differences between the incentivized pools?
    • DRV/ETH Full Range: DRV rewards distributed outside of Aerodrome (part of the 2 million DRV incentive program).
    • DRV/ETH CL200: DRV rewards distributed outside of Aerodrome plus bribes for enhanced emissions (must be in range).
  2. How are rewards calculated and distributed?
    • DRV rewards are calculated hourly and claimable as stDRV at the end of the program.
    • AERO emissions are streamed weekly and distributed based on staked LP tokens.
  3. Do I need to stake my LP tokens?
    • Yes. LP tokens must be staked on Aerodrome to earn DRV and AERO rewards.
  4. How do I migrate liquidity from the vAMM pool?
    • Remove liquidity from the vAMM pool on Aerodrome.
    • Reallocate funds to the DRV/ETH CL200 pool (must be in range).
    • Stake your LP tokens to start earning rewards.
  5. Why prioritize the CL200 pool over the vAMM pool?
    • The CL200 pool offers enhanced emissions through bribes, resulting in greater rewards and improved liquidity depth.

Bridging Reminder

  • First, go to the Homepage on Derive, transfer DRV to your funding account.
  • Then withdraw DRV from your funding account on Derive Chain to complete the bridge.

For further guidance, check the help docs.

Giddy up 🐎