Liquidity depth is key in an AMM. It reduces slippage (price impact) on swaps making them more attractive to larger volume trades. FaithSwap understands the importance of liquidity depth in each of our liquidity pools. To address this it will begin the Early Bird Drop on February 14th and will last until March when the Liquidity Mining Program launches. Liquidity mining incentivizes users to add liquidity to liquidity pools and aims to counteract any impermanent loss experienced by users.
Early Bird Drop
This will consist of 100 $CODE weekly drops distributed among liquidity providers of each pool. One random snapshot of LP tokens will be taken during the week to calculate share of drop. Drop will be distributed each Sunday.
It will begin Monday, February 14, 11:00 AM UTC and last until Liquidity Mining Program launches.
Liquidity Mining Program
Every user holding eligible LP tokens from any of the liquidity pools can participate in liquidity mining $CODE claim. Users will need to lock LP tokens in Liquidity Mining Program dApp for at least 10,080 blocks (7 days) to be able to claim rewards after maturity.
CODE, A4A and xUSD LPs
These three pools will share a special relationship. CODE/USDT, A4A/USDT and xUSD/USDT are decidedly key pairs by the A4ADAO, and as the pools grow so will the A4A ecosystem.
Genesis is the initial phase of the Liquidity Mining Program. It will last 524,160 blocks or approximately one year. In this year FaithSwap will allocate 52,088.4 $CODE collected from treasury taxes to be distributed evenly to $CODE, $A4A and $xUSD LPs.
Each pool will need to to reach a minimum liquidity depth as shown in the table below. This minimum liquidity depth required guarantees an easily achievable linear growth in LPs while reducing $CODE dump impact as each block is mined.
After Genesis initial phase, rewards will be discussed and put up to a community vote.
Subsequent liquidity pools will be eligible to receive between 1000–2000 $CODE per year until further discussed and put up to a community vote.