Hi everyone, I see there is a lot of misunderstanding about the current program that is going on with respect to liquidity minin
13 Jan 2022, 15:08
Hi everyone, I see there is a lot of misunderstanding about the current program that is going on with respect to liquidity mining and trade rewards.
What is going on?
- The IDEX liquidity mining program and trade rewards program are incentivizing users to provide liquidity and try out the exchange
- Currently ~300k IDEX is being contributed to this per day
- While this sounds like a lot, it amounts to ~17% annual inflation on the existing circulating supply
- This is in line with many other top protocols (cosmos ~12%, terra - ~17%, etc.)
- The token trades anywhere from $10-40M in daily volume, a small portion of which is these rewards
- Many users are keeping and staking these IDEX tokens to participate in the protocol (more on this below)
Why are we doing this?
- To help bootstrap adoption!
- It's a tried and true method of generating interest and participation in the project
- Without participation in IDEX the exchange, it's just another meme token
Is it working?
- Absolutely!
- $30M in TVL meaning tight spreads and good liquidity on many markets
- Over $260M in trade volume since launch, netting stakers ~$300k in fees
Please note that we don't plan to continue this indefinitely, it's a method for bootstrapping initial usage and interest. If you have any specific questions I'm happy to answer them, but please refrain from fud statements like we are intentionally tanking the token. The team is here working hard every day to make sure this is a success.