Liquidity v.2

Should I be withdrawing my rewards every week and reinvesting it into provide? Or does it automatically compound?

Interest for funds deposited in Provide are automatically compounded every hour.

If you deposit 100 PRV, you will earn 28% APY interest that is compounded every hour. This interest is paid as PRV.

If you deposit 100 XMR, you will earn 13% APY interest that is compounded every hour. This interest is paid as PRV.

For non-PRV deposits (ie BTC, DAI, XMR above, etc) – if you would like to earn the higher rate for PRV on that newly earned PRV, you would need to withdraw your rewards to deposit them in the PRV Provide pool.

This strategy allows you to:

  1. Deposit BTC, XMR, etc
  2. Earn interest at the applicable rate (11% APY, 13% APY, etc)
  3. Withdraw the interest every so often
  4. Immediately deposit in the PRV Provide pool
  5. Earn hourly compounded interest on that interest-as-deposit at 28% APY

The frequency of these withdrawals is up to you. Very large deposits may generate enough PRV to warrant a withdrawal daily or every other day. Smaller deposits will likely warrant a weekly or every other week withdrawal frequency.

Or you could simply leave the interest earned on BTC, XMR, etc Provide pools as-is, and continue to earn compounded interest at those “lower” rates without the hassle of regular withdrawals & deposits into the PRV Provide pool.


Wait, so all my interest i have made on my btc is now earning at btc rates and NOT prv rates?!

Are you 100% positive?

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Unless you’ve withdrawn those rewards and deposited them in the PRV Provide pool … then yes, your BTC rewards are earning and compounding at BTC rates. This is the way the Provide mechanism has worked since v2 launched.


Hello Mike!

Thank you for your explanation I liked it a lot :grin:.


How centralized is the liquidity pool? Better yet how centralized is the entire project?

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Long story short—a lot of aspects of incognito are centralized, especially custody of funds, number of nodes of the network, control to make sure their nodes get picked more often than anyone else, access to the app (which can be turned off from time to time), control over fees charged, etc. You have to trust the team. I do but you need to make your own decision.

However, incognito’s goal is to be private–which is different than decentralized, with the progressive goal of becoming more and more decentralized over time.

There are different trains of thought but with a fast evolving project that gets updated weekly, the centralized control over the aspects ease a huge burden of upgrades and delivery of new tech.


Thanks for the input @marko!

The mains goal is to be a decentralized privacy layer for the whole crypto industry. Unfortunately there is no way to become truly decentralized network from the day one. See Incognito's pragmatic approach to decentralization. At the same time the main goal remains the same and core team work really hard to release the network this year: Incognito's 2021 privacy roadmap for the world


Good correction. I shouldn’t have said it was the goal to be private instead of decentralized. I should have said the approach was to build a privacy layer first, then decentralize along the way. Maybe that’s not even right—but better everyone can read it from Andrey himself :grin:


@andrey how much time do you think we can take to achieve it? What would happen to us at this „centralized“ stage if regulators start attacking privacy projects directly?


Hey @sato, we aim to keep our promise and release all aspects within this year :crossed_fingers: :crossed_fingers:

Technological Decentralization Operational Decentralization Governmental
Incognito v1 (2019) Yes (Fully-sharded PoS) Somewhat (2,000+ nodes but with a fixed-node setup) Somewhat (Self-funded DAO and community proposal system but manually approved by a board)
Incognito v2 (2021) Yes (Fully-sharded PoS) Yes (10,000+ nodes with no fixed nodes) Yes (DAO with 100% community-driven voting

Regarding attacking privacy projects. If someone will decide to attack privacy projects they will start with Monero, Zcash and Dash. Incognito is bellow radars and probably remains there until we became too big to be ignored (top 100 CMC or so).


Yes, this is my main concern. I don’t want to grow too big before we had a chance to equip ourselves with a defense in the event we get targeted.

We need to decentralize decision making by allowing community members in the DAO.
We need to decentralize Bridging and make it trust-less so funds aren’t at risk.
We need 3rd party security audits to make sure everythings above board.

These are the priorities we really need to focus in on and complete ASAP. PRV has been growing significantly, especially with the insurgence of people we got from Incognito Quest. We really need to push to solve these issues quickly. Once the issues are resolved we can worry about improving other aspects of the platform. If we don’t prioritize them now, Incognito will certainly have issues in the not so distant future.


Fully agree with you @Revolve :+1:


I know this is several months old but I would like to point out that market cap is not the only metric to use when deciding which alts to focus on. I would argue that average daily volume might be a better metric to use as this more accurately reflects which coins are actively being used and not just price pumped, for instance DASH. Has fallen in market cap rank (due to other pumping), but is one of the most used cryptos and blockchains world wide. Just one example.

Just an aside…DASH is not a privacy project. Their PrivateSend function is just in-built coin mixing, something that can just as easily be done with bitcoin, litecoin or any other bitcoin fork. And people of course use mixing services all the time, but you don’t hear them being labelled as privacy coin. That said, the DASH core team does have to spend a lot of time traveling all over world to meet with regulators and exchanges to educate them on this fact.

Hey @CaptMartini agrees, trading volume is also a good metric. Btw we kickstarted liquidity for DASH and added it to Provide.

Please help us to spread it with the DASH community, to maintain enough liquidity for the cross-chain swap.

Oh hey, that’s great to hear. I will definitely provide to the DASH LP. I will also reach out to the DASH community. I’m brand new hear and still trying to figure things out, but I really really like what you are doing here and people need to know.


i like the idea. Is there any chance of earning in-kind rewards in near term in Incognito?