- May 3, 2021
- Posted by: Witness
- Category: Uncategorized
Liquidity is necessary for any publicly traded asset. Buyers and sellers want to transact at a fair price in a deep, orderly market with little slippage. And to ensure the price stability of the DLF coin, adequate liquidity must be present. And, instead of paying large exchanges exorbitant fees to provide liquidity, we prefer to give that payment to our community members, hence the creation of Liquidity Bounties.
Essentially, when providing liquidity, users already earn rewards from exchange fees but the liquidity maker bounty will also add an extra reward for the liquidity providers in form of DLF tokens.
This community-based approach to market making unlocks a new compensation model that we call liquidity bounties. Inspired by bug bounties, liquidity bounties allow Dollarswap users to earn rewards from providing liquidity to a token issuer.
Anyone who is eligible to trade the token can now compete with others to earn extra tokens based on their liquidity provision. Bounty program participants can see where they rank versus others via a public leaderboard.
We take compliance extremely seriously. Liquidity bounty participants need to opt into data collection, which allows us to verify their trading activity against our internal exchange data feeds and prevent reporting of fake volume. In addition, we will run proprietary algorithms to detect fake activity or liquidity hedging.
How Dollarfuture Liquidity Bounty works
The liquidity bounty will run every week and will end at the end of 8 weeks.
Total rewards for the liquidity bounty will be calculated every week and added to the leaderboard for each user
Users interested in participating in the liquidity bounty are required to sign up here
After liquidity provision, users are required to hold LP tokens in their wallet for 7 days. Watch the video below to see how to provide liquidity:
After 7 days, average amount of LP tokens held by the user will be added to the leaderboard for that week.
Users that join after the first day on a new week will receive halved rewards.
Users that join in the last 3 days of a new week will not receive rewards for that week.
User will receive 10% of provided liquidity as rewards per week.
More updates soon …