Competitive Farming

Competitive Farming is a highly unique system built by the Ramses team that allows for the scale of paid emissions to individual users based on their efficiency of their liquidity. Please keep in mind that we will cover Concentrated Liquidity later in Creating Liquidity & Farming, this section is focused on how rewards are paid to users NOT how to create Concentrated Liquidity positions!

Competitive Farming

Competitive farming is the method of rewarding the most productive and competitive liquidity with the highest returns. In concentrated liquidity models, users choose their liquidity ranges which they want to provide LP to. This opens the possibility for a user to choose any amount of tick ranges between 0 to ∞.

What are the benefits? The more optimized a user's range is, the higher rewards they earn. This naturally aligns liquidity providers' interests with Ramses' growth and success. The goal of these incentives is to increase trading volume in pools, making them preferred routing destinations for aggregators. Concentrated liquidity is multiple times more efficient in bringing volume to a pool.

As trading volume grows, pools generate more rewards, which are distributed as real-yield to xRAM stakers.

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How does this differ from other models? Concentrated Liquidity outpaces Uniswap V2 liquidity 80-100x in terms of price execution, which leads to fees also increasing 80-100x. However the tighter a position, the more impermanent loss occurs. The goal for any user is to adjust positions consistently and often enough that the rewards outpace the risk. On Sonic, position management is significantly more efficient and responsive.

Your efforts on Ramses are rewarded in full—the tighter your ranges, the more active your liquidity, the higher your earnings!