> For the complete documentation index, see [llms.txt](https://docs.premia.blue/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.premia.blue/the-premia-protocol/concepts/liquidity-mining.md). # Liquidity Mining Replacement of traditional token liquidity mining with Premia Call Options * The proposed change allows liquidity providers to receive PREMIA Call options at a 45% discount to the underlying asset's current market price, replacing the current liquidity mining scheme. * The proceeds, if exercised, will circulate \~90% to vxPREMIA staking users and direct the remaining 10% to Blue Descent DAO. If not exercised, 20% of the option's intrinsic value will be locked for 1 year and then provided to the liquidity provider's wallet. * Protocol Fees will be collected on exercise, and taker fees will be collected if this option is traded on the secondary market. This is built modularly so that any market can be deployed as a physically settled option. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.premia.blue/the-premia-protocol/concepts/liquidity-mining.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.