Surge USD Bootstrapping Overview

At the heart of the Surge Perpetual Dex is the central USD pool. As well as acting as the counterparty to every position opened by our users, the central pool also earns fees whenever a position is opened or closed. Crucial to the health of the pool and the exchange at large, is the depth of its liquidity.

Surge are therefore pleased to announce an incentive program to reward the most steadfast of liquidity providers, whether they be from our existing community of hardened insurgents, or civilians from the broader community, keen to be an integral part of the Premier Perpetual DEX on Radix.

Total Reward Pool: 2 million SRG tokens allocated to reward liquidity providers (LPs) who contribute xUSDC during the initial launch phase.
Duration: First 180 days of the Surge Perpetual Exchange launch.
Distribution: Rewards will be distributed shortly after the 180 day bootstrapping period. Further details to be announced.

Accumulating Rewards: SRG rewards are accumulated hourly and are proportional to the amount of xUSDC liquidity provided relative to the total pool liquidity.
Equivalent daily rewards shared among all LPs will start at approximately 7,500 SRG, peak at 14,800 SRG after 90 days, and then taper back to 7,500 SRG by the end of the program. This bootstrapping mechanism is designed to align with expected trading activity and generated fees*, ensuring a healthy growth and yield for liquidity providers supporting Surge Perpetual Exchange traders. *70% of all trading fees go into the USD pool.

Importance of Bootstrapping the USD Pool
Bootstrapping the USD pool is essential to provide sufficient liquidity and stability for the Surge Perpetual Exchange. A well-funded USD pool ensures traders can open and close positions smoothly, enhances the platform’s capacity to handle larger trades and mitigates risk through the Auto-Deleverage mechanism. By incentivising liquidity provision during the launch phase, Surge establishes a robust foundation for sustainable growth and optimal trading experiences.

Surge USD Pool Recap
The Surge USD pool earns fees from the opening and closing of trades and takes the opposite side of every user account’s positions. Similar to user accounts, the pool has limits on total open interest and risk exposure. If a trade would exceed these limits, it will be rejected by the protocol. If the USD pool’s risk grows too large due to price changes, an Auto-Deleverage mechanism activates, which may force-close positions to reduce risk.

The SRG Token Recap
Central to the ecosystem is the SRG token, playing a pivotal role in governance, fee structures and rewards. For further details on the SRG token utility, please refer to the tokenomics article here.
Token Supply: 100,000,000 SRG