This article was first published on Loopring Protocol - Medium
Today we have launched three new liquidity mining campaigns on Loopring Exchange. In total, there are currently four campaigns. Four campaigns simultaneously will continue to be the cadence going forward, to ensure there are always several opportunities for liquidity providers to earn.
Liquidity mining on Loopring.io is the program of giving liquidity providers on the venue rewards for their service (adding liquidity to the orderbooks). This should not be confused with market making rebates, which also exist on our exchange. The difference is: liquidity mining rewards are earned by your liquidity (limit orders) just ‘being there’, resting on the orderbook; market making rebates are earned when someone actually fills (takes) your order. In that sense, the same maker order someone places on the venue can earn rewards in two ways: liquidity mining and maker rebates.
Liquidity mining campaigns on Loopring are for specific trading pairs, typically last 30 days each, and each campaign has its own spread requirement and associated reward pool (described by a dollar amount and reward token). Three campaigns just expired, so there are three new ones to announce today: ADX-USDT, NIOX-ETH, QCAD-USDT.
One was still in process, BZRX-ETH, making a total of four. We will maintain four liquidity mining campaigns simultaneously going forward, so there are always ways for Loopring liquidity providers to earn. In future, we may scale this up and offer it across many more pairs at once, and perhaps generalize the rewards with LRC.
The parameters of each campaign can always be seen in the liquidity mining dashboard displayed above. Rewards accrue according to hourly snapshots of the relevant orderbook, and are paid out in bulk on the 1st of every month (assuming the campaign is over, if not it rolls to subsequent month).
- ADX-USDT: 1% spread, 6000 USD reward pool, paid in ...
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Loopring Protocol - Medium