Protocol Owned DEX Liquidity
The Protocol Owned DEX Liquidity (PODL) is a module that buys LP tokens using 50% of Blizz’s AVAX treasury rewards. All purchased BLZZAVAX LP tokens are locked forever to ensure healthy ongoing liquidity and effectively making less BLZZ Tokens available over a long enough timeframe.
As an incentive, PODL offers a 10% premium on BLZZAVAX price. PODL is not mandatory by any mean, it is a way to exit your LP position by selling your BLZZAVAX 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 BLZZ. Once you Super PODL to buy all the available AVAX treasury at once, it incurs a one week cooldown.
To use PODL, you can go to the PODL page, approve the contract spending BLZZAVAX on your behalf if you haven’t already, pick an amount of AVAX to buy and press the “Buy AVAX” button.
To use Super PODL, you can go to the PODL page, approve the contract spending BLZZAVAX on your behalf if you haven’t already and press the “aaaaaaaah I’m super podliiiiing” button.
The amount of AVAX you can buy depends on your amount of locked BLZZ and the amount of AVAX available in the treasury.
BLZZAVAX tokens need to be unstaked to be sold to the treasury. You can see this number on the PODL page (“Based on your locked BLZZ, you can buy: X AVAX“).
Note that PODL button is disabled if the amount of buyable AVAX is smaller than 1. The amount of buyable AVAX is given by the formula: buyable AVAX = 25 * available AVAX in treasury * your locked BLZZ / total locked BLZZ
Given the available AVAX in the treasury refills as AVAX borrowing fees are paid.
In order to Super PODL, you need enough unstaked BLZZAVAX to buy the entire treasury.
Meaning you need at least (BLZZAVAX): available AVAX in the treasury / BLZZAVAX price (in AVAX)
- AVAX currently available in the treasury
- BLZZAVAX held by the treasury
- Total AVAX sold
The treasury does not stake BLZZAVAX, 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).