Coil Spring

The SpringApp incentivizes liquidity on Uniswap by paying out rewards from the Liquidity fund. We have budgeted 1/5 of our token supply to show we are committed to continuing to grow and incentivize liquidity for many years to come. We believe a large pool of liquidity is essential in the success of any project, and not only will we be incentivizing liquidity in our pools, we also have a unique twist to our Spring, which will encourage that liquidity to REMAIN in the pool and become more predictable. Our design adds a Certificate of Deposit system on top, which will make liquidity more predictable, more stable, and much harder to manipulate.

Overview

Users will be able to opt into the Coil Spring by providing liquidity into the Uniswap pool. In return for providing the ETH and COIL liquidity they will receive a V2 token which they can then stake and put into the Spring. Users are able to choose how long they would like to provide liquidity (1–90 days). The longer you provide liquidity, the larger the rewards. You will receive a multiplier and start at 1x and add to this each day. After 30 days it goes up to 2x, after 60 days it raises to 3x, which is the max multiplier. If users elect to provide liquidity for 30 days, but stay in the pool longer, you do not accrue higher rewards. The time lock duration chosen is the maximum amount rewards that a user can receive. So staking longer from the start gives you the higher multiplier as you cannot get a 3x if you stake under 60 days. Once your time is served you can withdraw your full balance (also subject to rebases + the rewards). The Spring adds a unique twist to this liquidity not seen in crypto. If you elect for 90 days, but decide to pull your liquidity after 10 days, you will pay a large penalty that can eat into your principle. This penalty is then distributed to all of the good actors in the Spring that provide liquidity for the amount of time they agreed too, increasing their rewards.

What makes this idea of the Spring so powerful, is that it allows liquidity to become more predictable and chartable. People are able to map out when large amounts of liquidity enter or leave the pool and thus make much more logical decisions. This predictability in the liquidity will lead to less volatility, while also solving some of the manipulation issues because it designs a system that rewards good actors of the network and penalizes bad actors.

Final Notes

COIL rebases all addresses so all pools and balances will be updated proportionally. Users LP token does not change, as it is a placed holder showing their share of the pool. Although, the share of the pool and claim to ETH and COIL will fluctuate.

The penalty system may seem harsh at first, but this is very important. If you elect to serve 90 days you get a large share of the pool and a much higher stake weight, meaning others are losing a large share of the pool and rewards. So when you only serve 45 days out of 90 days agreed, you will lose 25%, but this is to compensate others for the weight and rewards taken away from them. Designing the Spring in this manner encourages good network behavior by rewarding those that keep liquidity locked for the duration they agreed on. In addition, it also discourages bad network behavior leading to more predictable liquidity, less volatility, and less manipulation.

For additional information regarding the Spring, click here.