Earnings Liquidity-Mining

From DeFiChain-Wiki

The decentral exchange on DefiChain can only work, if people provide liquidity to it. To incentise providing own coins (both pool pair coins are needed) the Liquidity providers are getting revenue. There are 2 different parts of it:

  • 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-pool will be paid from the airdrop amount. The remaining DFI amount can be found on the address:
8UAhRuUFCyFUHEPD7qvtj8Zy2HxF5HH5nb

The DOGE-pool is a marketing campaign and is mostly paid by Cake and some DefiChain community members. The block reward is get from 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 9th Feb. 2021
  • BCH-pool: 1 DFI/block (0 DFI/block) starting 17th Mar. 2021
  • DOGE-pool: 1 DFI/block (0.1 DFI/block starting ~28th Feb. 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 - at the moment smaller - revenue part are the fees from the DEX-users. From every coinswap 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)