IDO, Seed, and Private Pools for LPs

2 min readNov 19, 2021


The addition of LP staking has created a lot of excitement and requests to add LPs to the Tier System. Light Liquidity Mining is rewarding LPs with great APR and rewards in Light, which is a great way to up your tier just by making LP with the light you do have, or using the Light rewards for Single Asset Staking and earn even more BNB rewards.

Tier System for LPs

The other main question is about how LP works with tiers. It’s impractical to calculate the moving amounts of Light and BNB in the pool on a constant basis, and so a simpler method is going into place. The tier structure for LP will be based solely on the amount of LP tokens owned, not the floating amounts caused by normal price changes. The LP tier structure will be this:

Bronze 120–239 LP Tokens

Silver 240–849 LP Tokens

Gold 850–2399 LP Tokens

Diamond 2400+ LP Tokens

The keen-eyed will notice that currently, this allows participation in a tier with lower amounts of Light than simply holding the token. It equates to roughly 85% of the Light needed for a tier, paired with an equal amount of BNB. This allows holders to pair their Light without the tax negatively affecting their place on the tiers. Mixing tokens and LP will also be counted towards your tier.
One example of how this works:

2500 Light and 60 LP tokens; this will put you in Bronze tier

1 LP Token is equal to exactly 41.6666666667 LIGHT for the Tier System. So you have full flexibility to set your tier up with the proportions that you want.

Any combination of LP and Light works in the same way, as long as the total puts you over the line for the tier.

Fees for creating LP

Another common question about creating LP is the fee involved. Unfortunately, the way Uniswap was written, creating LP interacts with the same contract as trading does and there is hardly any way to distinguish the two interactions in contract code, and this triggers the tax mechanism. PancakeSwap is a Uniswap fork, and as such inherited the design and contract logic. All tokens with a tax have this interaction when making or breaking LP on PancakeSwap. Lightning has no control over this, and PancakeSwap would have to write a new LP function from scratch, which is unlikely, to say the least. The end result of this is that both making and breaking LP triggers the trading tax. The much higher APR makes up the fee relatively quickly though, and it is the best option, but we want to be clear about how the process works.