Liquidity strategy: the genesis farm and why it's LP-only

The peg can only be as stable as the liquidity behind it. A thin HAM/WHYPE pool means small trades move the price a lot, which forces frequent rebases; a deep pool absorbs flow and keeps HAM near $1. This page explains how the protocol bootstraps that depth and why it does so the way it does.

One farm, by design: the LP incentivizer

At genesis HAM runs a single Synthetix-style reward farm, HAMIncentivizer:

• You provide HAM/WHYPE liquidity on the pool, receive the pool's LP token, and stake the LP token in the incentivizer.
• You earn HAM rewards on a halving emission schedule (each period mints the next tranche and re-anchors — early emissions are higher, then taper). Rewards are minted by the pool, which is why it must be registered as the token's incentivizer.
• Because HAM itself rebases, the pool scales reward accounting by the scaling factor at payout, so your rewards track the elastic supply rather than drifting against it.

See Provide and stake LP for the steps.

Why there is no single-sided "stake HYPE, earn HAM" farm

An earlier design also had a single-sided pool: stake HYPE (or WHYPE), earn HAM. It was removed before launch, deliberately. The problem is that a single-sided giveaway captures none of the staked asset — the protocol hands out free HAM while the staker keeps their HYPE — so every emitted token is uncovered sell pressure with no offsetting buy and no liquidity gained. On a young, thin pool that is how a peg gets driven into a negative-rebase spiral.

The LP farm is the opposite: to participate you must buy HAM (to pair it into liquidity), which is buy pressure, and the liquidity you add deepens the pool that defends the peg. The emissions still create sell pressure when farmers harvest, but they're at least matched by liquidity that makes the peg more robust. Concentrating genesis incentives on the LP farm is the single highest-leverage thing the protocol can do for peg stability.

Where the treasury fits

The treasury is fed by the positive-rebase mint, which can be recycled into deeper liquidity over time: each positive rebase mints a rebaseMintPerc slice; ~90% is sold into the pool for WHYPE (the DAT harvest) and the remainder is kept as HAM — both accrue to the treasury.

Holding the protocol's liquidity and reserves in the treasury multisig (rather than burning it) keeps dry powder available to add depth where the peg needs it — at the cost of requiring you to trust the multisig not to pull it. That trust boundary is covered in Governance & security.