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Liquidity Mining

What is Liquidity Mining?

Liquidity mining, also known as yield farming, is a way for network participation that allows you to provide liquidity to a liquidity pool (LP) on a Decentralized Exchange (DEX). In return, you receive a reward from that specific liquidity pool. Depending on the LP, a user may also be rewarded in a native token or governance token of the protocol (In this case, DFX), which allows you to vote and contribute to the protocolโ€™s future.
Liquidity mining is important because it helps create liquidity to enable the trades between different token pairings and this incentive strategy enables users to contribute liquidity in order to facilitate those trades. This means that the majority of liquidity pools are between trading pairs where users can deposit the two different cryptocurrencies depending on the pool.

Current LP Incentives

If you would like to participate, simply follow this two-step process:
  1. 1.
    Supply liquidity to any of the liquidity pools on DFX.
    - If you want a step by step guide, click hereโ€‹
  2. 2.
    Stake your liquidity pool tokens (LPTs) on DFX.
    - Click the โš™ next to the LP you provided to and click 'Stake LPTs'
November 23 - December 22 (Ethereum Mainnet)
Pool
Allocation (DFX)
CADC/USDC
113,750
EURS/USDC
113,750
XSGD/USDC
91,000
NZDS/USDC
102,375
TRYB/USDC
79,625
XIDR/USDC
34,125
DFX/ETH
70,000
November 23 - December 22 (Polygon)
Pool
Allocation (DFX)
Allocation (TEL)
CADC/USDC
32,315
500,000
EURS/USDC
32,315
500,000
XSGD/USDC
25,852
500,000
NZDS/USDC
29,084
0
TRYB/USDC
22,621
0
DFX/ETH
33,333
3,333,333

Allocation Point System

The point system was put in place after the passing of [DIP-002] Liquidity Mining Incentive Scheme.โ€‹
A point system is to be implemented such that each currency can have up to a maximum of 10 points. It scales down linearly based on currency volume but the community can vote to increase/decrease it by up to 2 points per proposal if the community deems the stablecoin as high/low demand (i.e. PHP, INR, etc.). The source of the volume will be Bank for International Settlements (BIS) report. https://www.bis.org/statistics/rpfx19_fx.pdfโ€‹
The allocation will be based on the total amount of points allocated and the total points distributed.
Rank
Allocation
1-5
10 pts (EUR, JPY, GBP, AUD CAD)
6-10
9 pts (CHF, CNY, HKD, NZD, SEK)
11-15
8 pts (KRW, SGD, NOK, MXN, INR)
16-20
7 pts (RUB, ZAR, TRY, BRL, TWD)c
21-25
6 pts (DKK, PLN, THB, IDR, HUF)
26-30
5 pts (CZK, ILS, CLP, PHP, AED)
31-35
4 pts (COP, SAR, MYR, RON, OTH)
36-40
3 pts
41-45
2 pts
46-50
1 pt
Last modified 26d ago