Difference between revisions of "Liquidity Mining"

From DeFiChain-Wiki
m (Misterpiggie49 moved page Earnings Liquidity-Mining to Liquidity Mining: It is a more concise title.)
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For the decentralized exchange on DeFiChain to work, investors need to provide liquidity to the liquidity pools. In each pool, liquidity providers must provide both pool pair coins.  
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For the decentralized exchange on DeFiChain to work correctly, investors must provide liquidity to both sides of the liquidity pools, which is known as "liquidity mining."
  
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To incentivise liquidity providers, they receive two different types of revenue:
+
To incentivise liquidity providers, they earn two different types of revenue in compensation for price volatility, which may cause [[Impermanent Loss|impermanent loss]]:
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* DFI rewards per block
+
* DFI rewards per block (which are currently being awarded due to the fact that there is not currently enough swap commissions to provide the appropriate rewards to the liquidity providers.
 
* Fees for each swap on the Decentralized Exchange (DEX)
 
* Fees for each swap on the Decentralized Exchange (DEX)
  
 
== Block rewards ==
 
== Block rewards ==
−
At the moment, 45 DFI out of 200 DFI per block are used to pay the liquidity providers. With DeFi Improvement Proposal 3 (DFIP 3) this amount was increased by 55 DFI/block from the original fixed airdrop amount. Additionally, the LTC and BCH pools will be rewarded from the airdrop amount. The remaining DFI amount can be found on this address:  <br>[https://dex.defichain.com/mainnet/address/8UAhRuUFCyFUHEPD7qvtj8Zy2HxF5HH5nb 8UAhRuUFCyFUHEPD7qvtj8Zy2HxF5HH5nb] <br><br>
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At the moment, 45 DFI out of 200 DFI per block are used to pay the liquidity providers. With DeFi Improvement Proposal 3 (DFIP 3) this amount was increased by 55 DFI/block from the original fixed airdrop amount. Additionally, the dLTC and dBCH pools will be rewarded from the airdrop amount. The remaining DFI amount can be found on this address:  <br>[https://dex.defichain.com/mainnet/address/8UAhRuUFCyFUHEPD7qvtj8Zy2HxF5HH5nb 8UAhRuUFCyFUHEPD7qvtj8Zy2HxF5HH5nb] <br><br>The dDOGE pool is a marketing campaign and is rewards are mostly paid by Cake and some DeFiChain community members. The block reward is provided from this address: [https://dex.defichain.com/mainnet/address/dbzD1wUTqb1WQLHv9jz5M2fMF1h9VqaXyK dbzD1wUTqb1WQLHv9jz5M2fMF1h9VqaXyK] <br><br>With this we are getting the following block rewards for liquidity miners. The values in brackets are the rewards after the balance of the mentioned addresses reached zero: (this section has become outdated, waiting for more information)
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The DOGE pool is a marketing campaign and is mostly paid by Cake and some DeFiChain community members. The block reward is provided from this address: [https://dex.defichain.com/mainnet/address/dbzD1wUTqb1WQLHv9jz5M2fMF1h9VqaXyK dbzD1wUTqb1WQLHv9jz5M2fMF1h9VqaXyK] <br><br>
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Block Rewards for Cryptoasset Liquidity Pools ("d" in front of the cryptoasset, or any other asset for that matter, simply is a symbol showing that the cryptoasset is not native but rather a DeFiChain token which is backed by collateral)
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With this we are getting the following block rewards for liquidity miners. The values in brackets are the rewards after the balance of the mentioned addresses reached zero:
+
{| class="wikitable sortable"
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* BTC-pool: 80 DFI/block (36 DFI/block)
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!(rewards are given in DFI/block)
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* ETH-pool: 15 DFI/block (6.75 DFI/block)
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!dBTC-DFI
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* USDT-pool: 5 DFI/block (2.25 DFI/block)
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!dETH-DFI
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* LTC-pool: 2 DFI/block (0 DFI/block starting Feb 9, 2021)
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!dUSDT-DFI
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* BCH-pool: 1 DFI/block (0 DFI/block starting Mar 17, 2021)
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!dLTC-DFI
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* DOGE-pool: 1 DFI/block (0.1 DFI/block starting ~ Feb 28, 2021 '''tbd''')
+
!dBCH-DFI
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Except for the DOGE-pool there is a countdown calculating the remaining blocks based on the address balance. The block count together with the average blocktime gives the expected duration for the high block rewards (cf. [https://www.cakedefi-review.com/DefiChain?tab=overview here]).
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!dDOGE-DFI
 +
!DUSD-DFI
 +
|-
 +
|Block Rewards
 +
|80
 +
|15
 +
|5
 +
|2
 +
|1
 +
|1
 +
|?
 +
|-
 +
|Bracketed Block Rewards
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|36
 +
|6.75
 +
|2.25
 +
|0 starting 9/2/2021
 +
|0 starting 17/3/2021
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|0.1 starting 28/2/2021 '''tbd'''
 +
|?
 +
|}
 +
Except for the DOGE pool, there is a countdown calculating the remaining blocks based on the address balance. The block count together with the average blocktime gives the expected duration for the high block rewards (cf. [https://www.cakedefi-review.com/DefiChain?tab=overview here]).
  
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== Fees from DEX-users ==
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Block Rewards for Individual Stock Liquidity Pools
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The second, currently smaller, part of the revenue is the fees from the DEX users. From every swap a fee of 0.2% of the given coin is deducted and distributed to the liquidity providers.
+
{| class="wikitable sortable"
 +
!(rewards are given in DFI/block)
 +
!dTSLA-DUSD
 +
!dGME-DUSD
 +
!dAAPL-DUSD
 +
!dBABA-DUSD
 +
!dGOOGL-DUSD
 +
!dPLTR-DUSD
 +
!dNVDA-DUSD
 +
!dAMZN-DUSD
 +
!dCOIN-DUSD
 +
|-
 +
|Block Rewards
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|-
 +
|Bracketed Block Rewards
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|}
 +
Block Rewards for Other Assets' Liquidity Pools
 +
{| class="wikitable sortable"
 +
!(rewards are given in DFI/block)
 +
!dSPY-DUSD
 +
!dQQQ-DUSD
 +
!dARKK-DUSD
 +
!dSLV-DUSD
 +
!dTLT-DUSD
 +
!dGLD-DUSD
 +
!dPDBC-DUSD
 +
!dVNQ-DUSD
 +
!dURTH-DUSD
 +
!dEEM-DUSD
 +
|-
 +
|Block Rewards
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|-
 +
|Bracketed Block Rewards
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|?
 +
|}
  
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There is also an evaluation of the total fee amount on a daily base [https://www.cakedefi-review.com/DefiChain?tab=DEXFees (Cake DeFi Review)].
+
== Commissions from DEX users ==
 +
The second, currently smaller, part of the revenue comes from commissions from DEX users' swaps. From every swap a fee of 0.2% of the given coin is deducted and distributed proportionally to the liquidity providers.
 +
 
 +
There is also an evaluation of the total fee amount on a daily basis [https://www.cakedefi-review.com/DefiChain?tab=DEXFees (Cake DeFi Review)].

Revision as of 03:04, 28 January 2022

For the decentralized exchange on DeFiChain to work correctly, investors must provide liquidity to both sides of the liquidity pools, which is known as "liquidity mining."

To incentivise liquidity providers, they earn two different types of revenue in compensation for price volatility, which may cause impermanent loss:

  • DFI rewards per block (which are currently being awarded due to the fact that there is not currently enough swap commissions to provide the appropriate rewards to the liquidity providers.
  • Fees for each swap on the Decentralized Exchange (DEX)

Block rewards

At the moment, 45 DFI out of 200 DFI per block are used to pay the liquidity providers. With DeFi Improvement Proposal 3 (DFIP 3) this amount was increased by 55 DFI/block from the original fixed airdrop amount. Additionally, the dLTC and dBCH pools will be rewarded from the airdrop amount. The remaining DFI amount can be found on this address:
8UAhRuUFCyFUHEPD7qvtj8Zy2HxF5HH5nb

The dDOGE pool is a marketing campaign and is rewards are mostly paid by Cake and some DeFiChain community members. The block reward is provided from this address: dbzD1wUTqb1WQLHv9jz5M2fMF1h9VqaXyK

With this we are getting the following block rewards for liquidity miners. The values in brackets are the rewards after the balance of the mentioned addresses reached zero: (this section has become outdated, waiting for more information) Block Rewards for Cryptoasset Liquidity Pools ("d" in front of the cryptoasset, or any other asset for that matter, simply is a symbol showing that the cryptoasset is not native but rather a DeFiChain token which is backed by collateral)

(rewards are given in DFI/block) dBTC-DFI dETH-DFI dUSDT-DFI dLTC-DFI dBCH-DFI dDOGE-DFI DUSD-DFI
Block Rewards 80 15 5 2 1 1 ?
Bracketed Block Rewards 36 6.75 2.25 0 starting 9/2/2021 0 starting 17/3/2021 0.1 starting 28/2/2021 tbd ?

Except for the DOGE pool, there is a countdown calculating the remaining blocks based on the address balance. The block count together with the average blocktime gives the expected duration for the high block rewards (cf. here).

Block Rewards for Individual Stock Liquidity Pools

(rewards are given in DFI/block) dTSLA-DUSD dGME-DUSD dAAPL-DUSD dBABA-DUSD dGOOGL-DUSD dPLTR-DUSD dNVDA-DUSD dAMZN-DUSD dCOIN-DUSD
Block Rewards ? ? ? ? ? ? ? ? ?
Bracketed Block Rewards ? ? ? ? ? ? ? ? ?

Block Rewards for Other Assets' Liquidity Pools

(rewards are given in DFI/block) dSPY-DUSD dQQQ-DUSD dARKK-DUSD dSLV-DUSD dTLT-DUSD dGLD-DUSD dPDBC-DUSD dVNQ-DUSD dURTH-DUSD dEEM-DUSD
Block Rewards ? ? ? ? ? ? ? ? ? ?
Bracketed Block Rewards ? ? ? ? ? ? ? ? ? ?

Commissions from DEX users

The second, currently smaller, part of the revenue comes from commissions from DEX users' swaps. From every swap a fee of 0.2% of the given coin is deducted and distributed proportionally to the liquidity providers.

There is also an evaluation of the total fee amount on a daily basis (Cake DeFi Review).

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