<figure class="wp-block-image size-large"><img width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/01/12201001/LP-Rewards-is-Over-375x211.webp 375w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/01/12201001/LP-Rewards-is-Over-662x372.webp 662w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/01/12201001/LP-Rewards-is-Over-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/01/12201001/LP-Rewards-is-Over.webp 688w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2024/01/12201001/LP-Rewards-is-Over.webp" alt="LP Rewards is Over" class="wp-image-4822"/></figure>



<p>The LP Rewards Program is officially over.</p>



<p>But don’t rush to pull your liquidity!</p>



<p>Here’s why.</p>



<h2 class="wp-block-heading tablecontent">Summary of the LP Rewards Program</h2>



<p>LP Rewards was a SMASHING success!</p>



<p>151.25 Billion <a href="https://www.thecoinzone.com/liquidloans/dont-dump-on-yourself-cash-out-with-liquid-loans/" data-wpil-monitor-id="1021">LOAN tokens were distributed to the liquidity</a> providers.</p>



<p>These <a href="https://www.thecoinzone.com/liquidloans/the-loan-token-halving/" data-wpil-monitor-id="1440">liquidity providers</a> helped the USDL:PLS pair on PulseX v2 to become:</p>



<ul>
<li>At its height, the 4th most liquid pair on all of the PulseChain.</li>



<li>The second most liquid stablecoin on PulseChain behind Dai from Ethereum</li>
</ul>



<p>But even though it’s over, and you won’t accrue LOAN rewards anymore, here is why you should not pull your liquidity.</p>



<h2 class="wp-block-heading tablecontent">Don’t Forget About the Fees</h2>



<p>Since the <a href="https://www.thecoinzone.com/liquidloans/loan-token-value-proposition/" data-wpil-monitor-id="1251">LOAN token</a> emissions were so outstanding, many liquidity providers forgot they were also earning trading fees on PulseX.</p>



<p>At the time of writing, 24h volume through the USDL:PLS pair on PulseX v2 was 2.4 million USD worth of either PLS or USDL.</p>



<p>If you apply the 0.22% trading fees earned by the LP, then you’ll find that liquidity providers earned a total of 5,280 USD worth of PLS and USDL in one day!</p>



<h2 class="wp-block-heading tablecontent">Game Theory</h2>



<p>It is not unreasonable to assume that other users will pull their <a href="https://www.thecoinzone.com/liquidloans/why-real-estate-investors-understand-ll/" data-wpil-monitor-id="872">liquidity because they only wanted to accrue the LOAN</a> token rewards.</p>



<p>This is great news for long term LPs, because they will receive a larger portion of the fees since they own a significantly higher portion of the liquidity pool.</p>



<h2 class="wp-block-heading tablecontent"> The Bottom Line</h2>



<p>There will be no more <a href="https://www.thecoinzone.com/liquidloans/the-biggest-misconception-about-ll/" data-wpil-monitor-id="1656">LOAN token emissions to the liquidity</a> providers on the USDL:PLS pair on PulseX v2.</p>



<p>However, it is not an unreasonable assumption that trading fees through PulseX for the LPs will ramp up because other liquidity will be pulled to make yield elsewhere.</p>



<p>Not to mention that volume across all of PulseChain has ramped up as well, resulting in increased fees for all LPs.</p>

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LP Rewards Is Over! But Fee Accumulation Isn't (Don't Pull Liquidity)

The LP Rewards is over, but here's why you should not rush to pull your liquidity on the USDL:PLS pair.