Earnings Liquidity-Mining

From DeFiChain-Wiki

For the decentralized exchange on DefiChain to work, people need to provide liquidity to the liquidity pools. In each pool, liquidity providers always need to provide both pool pair coins.

To incentivise liquidity providers, they get two different kinds of revenue:

  • DFI rewards per block
  • Fees of each coin swap on the DEX

Block rewards

At the moment, from the 200 DFI per block, 45 DFI are used to pay the liquidity providers. With DeFi Improvement Proposal 3 (DFIP 3) this amount was increased by 55 DFI/block from the original fixed airdrop amount. Also the LTC- and BCH-pools will be rewarded from the airdrop amount. The remaining DFI amount can be found on this address:

The DOGE-pool is a marketing campaign and is mostly paid by Cake and some DefiChain community members. The block reward is provided from this address: dbzD1wUTqb1WQLHv9jz5M2fMF1h9VqaXyK

With this we are getting the following block rewards for liquidity miners. The values in bracket are the rewards after the balance of the mentioned addresses reached zero:

  • BTC-pool: 80 DFI/block (36 DFI/block)
  • ETH-pool: 15 DFI/block (6.75 DFI/block)
  • USDT-pool: 5 DFI/block (2.25 DFI/block)
  • LTC-pool: 2 DFI/block (0 DFI/block starting Feb 9, 2021)
  • BCH-pool: 1 DFI/block (0 DFI/block starting Mar 17, 2021)
  • DOGE-pool: 1 DFI/block (0.1 DFI/block starting ~ Feb 28, 2021 tbd)

Except for the DOGE-pool there is a countdown calculating the remaining blocks based on the address balance. The block count together with the average blocktime gives the expected duration for the high block rewards (cf. here).

Fees from DEX-users

The second -- currently smaller -- part of the revenue is the fees from the DEX-users. From every coin swap a fee of 0.2% of the given coin is deducted and distributed to the liquidity providers.

There is also an evaluation of the total fee amount on a daily base (Cake DeFi Review).