Trustless Liquidity Mining

Programmatic token emission rewards

What is Trustless Liquidity Mining?

Trustless Liquidity Mining is a permissionless LP staking vault that distributes reward tokens to LP stakers based on time-weighted participation.

The vault:

• Accepts a designated LP token

• Streams a fixed reward token emission per block

• Settles rewards via a public harvest function

• Computes proportional distribution using block-based accounting

There is no offchain reward tracking. No operator allocation. No per-user reward ledger maintained externally.

All reward logic resolves to contract state + block.number.

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Core Accounting Model

The vault does not track “APR” or per-second yield.

Instead, it uses a time-weighted balance accumulator internally:

user_xp += (block.number - lastUpdateBlock) * user.balance
totalXP += gainedXP

XP is not a token and not user-facing. It is a pure accounting primitive representing:

balance × time

At harvest:

reward_share = (userXP / totalXP) × distributable_pool

Where:

distributable_pool = min(
    (blocks_since_lastRewardBlock × rewardPerBlock),
    rewardTokenBalance
) - caller_fee

This ensures:

• Larger LP → higher emission share

• Longer staking duration → higher emission share

• Linear block-based weighting

All values are derived from confirmed block height and contract storage.

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Emission Schedule

Emission is defined at deployment:

emission_rate × blocks_elapsed

This creates a deterministic streaming model.

No minting occurs inside the vault. The vault distributes only pre-funded reward tokens.

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Harvest Model

Reward distribution is triggered via:

claimAll()

To ensure liveness:

caller_reward = pool × 0.5%

This creates a permissionless keeper incentive. There is no privileged distributor role.

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Customizable Vault Architecture

The liquidity mining system is modular.

Vault parameters and mechanics can be customized at deployment to support different liquidity strategies, emission profiles, or protocol objectives.

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Custom Emission Models

Beyond fixed emissions, custom vault variants can support:

• Epoch-based emissions

• Emission decay curves

• Block-range multipliers

• Tiered reward rates

• Governance-adjusted emission rates

• Halving-style reductions

As long as state transitions remain deterministic and block-derived, the vault remains trustless.

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Step-by-Step Guide

1

Deposit BTC into Smart Wallet

Transfer BTC to your BiS smart wallet.

Funds become available after 1 block confirmation.

2

Purchase a BRC20 or BRC2.0 Token (4/5/6-byte tickers)

Buy any BRC20 or BRC2.0 tokens (4-, 5-, or 6-byte tickers).

Ensure the token has a mining rig available on Yuzo before proceeding.

3

Add liquidity

Create a liquidity position by depositing equal value of BTC and the paired token into a supported pool.

This action mints an LP position representing your share of the pool.

4

Withdraw LP Tokens to Your Linked Non-Custodial Wallet

Withdraw your LP tokens from the smart wallet to the non-custodial wallet that is cryptographically linked and used for connection.

Liquidity mining requires LP tokens to reside in the connected non-custodial wallet.

5

Go to app.yuzo.xyz/mine/

Connect the wallet containing your LP position.

6

Deposit LP Tokens

Deposit your LP tokens into the corresponding liquidity mining vault.

Rewards begin accruing once the transaction confirms on-chain.

7

Reward Accrual

Rewards accumulate automatically after each block confirmation while the LP tokens remain deposited in the liquidity mining vault.

Accrual is proportional to position size and time measured in confirmed blocks.

8

Harvest Rewards

Harvesting triggers a global reward distribution for all participants in the vault.

The caller who executes the harvest transaction receives a 0.5% execution fee from the distributed rewards as compensation for submitting the transaction.

Harvesting does not withdraw LP tokens from the vault.

9

Withdraw LP tokens

Withdraw your LP position from the vault at any time.