the path to ENTRP token liquidity
the first of many experiments targeted at growing ENTRP token liquidity
Creating a liquid token market is a vital step in creation of a vibrant data ecosystem.
The traditional way for projects to achieve token liquidity has been to pay large fees to centralised exchanges (listing fee revenue is their model) in the hope this would draw new users and attract volume to the token. Often time market makers would be engaged to at least create the ‘appearance’ of trading volumes. The unfortunate reality is for a large number of projects and exchanges the trading volume and activity is illusory.
Creation of decentralised order book exchanges (DEXs), has achieved great things in moving token custody and control from exchange hands back to the user, but for a variety of reasons they have struggled to attract healthy trading volumes.
The introduction of AMM DEX’s like Uniswap and Balancer allowed simple custodial token trading with conversion pricing set to a predetermined formula - addressing some of the usability and volume issues linked with the order book DEXs, but liquidty remained a challenge. Recently we have seen an explosion in AMM volumes, likely linked to the introduction of innovative ‘Liquidity Mining’ reward programs by projects like Compound and Synthetix. These, and other projects, have used this incentive mechanism to great effect, growing both their community and token liquidity.
Liquidity Mining, is a subset strategy of the recent #defi trend called ‘Yield Farming’ - in this specific sub-strategy, token holders are rewarded for providing token liquidity to a chosen project.
Imagine you support the long term vision of a project - in the case of theAgora, namely the building of an open data economy - you may hold $ENTRP tokens to use as a utility token on theAgora data exchange, or you may simply be speculating on their future price changes! Liquidity Mining of $ENTRP tokens provides holders an option to actively add value to their supported project and be rewarded for doing so!
"A journey of a thousand miles begins with a single step"
By placing your tokens into an AMM Liquidity Pool, in this case the Uniswap ENTRP/WETH pool, you support the project by providing valuable liquidity, assisting in growing the token economy and in return you receive Liquidity Provision (LP) rewards. Voila - you are now yield farming!
Proposed $ENTRP token pool Liquidity Experiment #1 (LE#1)
So we’re going to get started with an experiment, iterate rapidly based on feedback, and proceed from there……
Objective: Improve ENTRP token liquidity.
Duration: 10 Days 13th August -23th August 2020
Seed Pair: ETH/ENTRP pool.
Rewards: 10,000 ENTRP Total
Rules are as follows;
10 day reward period
1000 ENTRP per day rewarded prorata for your share of the liquidity tokens held - minimum eligible ENTRP contribution 1000.
Uniswap liquidity tokens must be held for 10 days.
You can add further liquidity during the 10 day period.
You cannot reduce your liquidity during the reward period, or you will not receive any rewards.
Liquidity tokens must be held at a single address.
Reward tokens will be distributed 2 weeks following completion of the experiment.
the data Odyssey continues