Protocol Owned DEX Liquidity
The Protocol Owned DEX Liquidity (PODL) is a module that buys LP tokens using 50% of Geist’s FTM treasury rewards. All purchased GEISTFTM LP tokens are locked forever to ensure healthy ongoing liquidity and effectively making less GEIST Tokens available over a long enough timeframe.
As an incentive, PODL offers a 10% premium on GEISTFTM price. PODL is not mandatory by any mean, it is a way to exit your LP position by selling your GEISTFTM directly to the protocol. By doing this, you are both helping the protocol and getting a profit, it’s a win-win situation.
Super PODL is an “extension” of PODL available to people with more than 10k locked Geist. Once you Super PODL to buy all the available FTM treasury at once, it incurs a one week cooldown..
The amont of FTM you can buy depends on your amount of locked Geist and the amount of FTM available in the treasury.
Note that PODL button is disabled if the amount of buyable FTM is smaller than 1. The amount of buyable FTM is given by the formula:
buyable FTM = 25 * available FTM in treasury * (your locked Geist / total locked Geist)
Given the available FTM in the treasury refills as FTM borrowing fees are paid.
In order to Super PODL, you need enough unstaked GEISTFTM to buy the entire treasury.
Meaning you need at least: available FTM in the treasury / GEISTFTM price (in FTM)
- FTM currently available in the treasury
- GEISTFTM held by the treasury
- Total FTM sold
The treasury does not stake GEISTFTM, it only holds them, so it does not dilute LP staking rewards (distributed amongst LP stakers). In fact, it can even increase them as people unstake their LP tokens to sell them to PODL (reducing the total amount of staked LP tokens).