Turtle Token Pledging Mechanism (V2 post TGE)

Turtle is dedicated to fostering enduring liquidity partnerships between Turtle LPs and Turtle Partner Protocols. The mechanism encourages Turtle LPs to solidify their commitment to a protocol by pledging Turtle Tokens (never the underlying LP) over a specified period. This innovative approach aims to cultivate lasting relationships within the ecosystem, particularly for those interested in long-term liquidity provision without active management. While Turtle Token pledging is optional, LPs not participating will still receive rewards in Turtle points for contributing liquidity to Turtle Partner Protocols, albeit at a reduced rate.

To incentivize Turtle Token pledges, Turtle employs a strategic distribution model, allocating a higher ratio of emissions to LPs who pledge their Turtle Tokens. This pledge acts as a staked deposit that can be withdrawn at any time.

The boost percentage varies based on factors such as the liquidity type sought by the Turtle Partner Protocol, the liquidity amount relative to staked Turtle Tokens, and the remaining commitment duration. When a Turtle LP removes their pledged LP deposit from a Turtle Partner Protocol before fulfilling their liquidity commitment, their staked Turtle Tokens incur a redemption penalty. Early removal of the LP position redistributes the staked Turtle Tokens to three addresses:

• Turtle LP address

• Turtle Partner Protocol’s Treasury address

• Turtle Token burn address

This dynamic mechanism aligns the interests of Turtle LPs with those of Turtle Partner Protocols, ensuring mutual commitment and compliance. Turtle envisions an ecosystem where LPs can maximize the potential of their Turtle Tokens through sustained and committed liquidity provisioning

Please note Turtle Token pledging needs to be refined and is subject to change