Participate in the Lockdrop

A Lockdrop is a mechanism often used in decentralized finance (DeFi) projects to distribute project tokens to participants who lock in tokens for a set period of time. In the SOMA.finance lockdrop, users will lock in tokens as liquidity providers for upcoming liquidity pools (LP) on the SOMA platform, gaining rewards proportional to the lockup period they have selected. Once the lockup period ends, users will receive their rewards in the form of LP tokens for the lockdrop pool they locked their tokens into.

In the SOMA lockdrop, participants stake their tokens to a smart contract for a selected period of time. By locking their tokens, participants become eligible to receive a certain amount of the SOMA’s native tokens and LP tokens as a reward. The longer the lockup period, the higher the potential reward. Once the lockup period ends, users will receive LP tokens for the lockdrop pool they locked their tokens into.

Participating in the lockdrop offers several benefits. Firstly, participants have the opportunity to receive tokens reward tokens proportional to how long they lock their funds in for. Once the tokens have been locked in, users are eligible to receive rewards in SOMA in accordance with how long their funds have been locked up for. Secondly, as a liquidity provider to the platform, you’ll be eligible to receive liquidity provider fees upon the launch of the SOMA Swap platform.

Lockdrop participation involves certain risks. The value of reward tokens and locked tokens, which will be converted to liquidity pool tokens and exposed to impermanent loss, may fluctuate over time and there is no guarantee of their future worth. Additionally, locked tokens may be inaccessible during the lockup period, limiting liquidity and potential trading opportunities.

You will decide your own lockup period from the options provided - 3 months, 6 months, 12 months, or 24 months. The longer the lockup period, the higher the potential reward. This lockup period can be set when participating in the lockdrop pool, and it can be changed later before the pool closure date.

To participate in the lockdrop, select the pool in which you’d like to allocate your tokens. Connect your wallet (if you haven’t already) and select the amount of tokens you’d like to allocate to the pool and the length of time for which you’d like to allocate them. Confirm the transaction in your wallet and you’re good to go.