🧊LP Nodes

LP nodes are essentially locked staking

Nodes for the Frozen Walrus protocol aren't the typical nodes you have seen in other protocols. It is essentially locked staking of the asset that trickles back to you overtime until you reach 500% return of investment.

Mechanics

Nodes cost a static amount of LP similar to a static amount of regular single tokens to create. The goal was to make them roughly $50 dollars. It is important to know this price can go up or down based on WSHARE or WLRS price. Once a node is purchased you will then receive that same LP back to you at a daily rate of 1.5% to 3%. This is accomplished by sending the purhcased amount of LP to a reward pool along with everyone elses purchased amount. This reward pool will then send out daily rewards in LP back to users that have purchased nodes.

30% of those rewards are given directly to the DAO for permanent protocol owned liquidity. The remaining 70% will constantly be used by the reward pool to payout node holders. The way that this continues to work is that people continually compound and buy more nodes week over week to pay back all node holders up until 500% ROI.

This method creates a bottleneck supply of LP that is given back to the user overtime en masse and creates a healthier LP lock that allows users to profit off the 500% return on their LP and the protocol will gain more stable liquidity.