Get ready for round 5 of incentives on Loopring’s L2 AMM & Orderbook exchange, beginning at 00:00 UTC April 1st, and lasting 13 days. We’ve got some amazing projects helping incentivize the shift to Ethereum zkRollups, so if you haven’t levelled up on layer 2 yet, now is the time.
You may notice the campaign lasting 13 days instead of the usual 14 days. That’s because we are adjusting it so that on day 14 is when the payout actually happens, directly to your L2 account. For campaigns that last beyond one round, you can stay in the AMM pool/orderbook, and liquidity mining automatically resumes. More on this below.
1. AMM: Liquidity Mining & Swap Tournament
The following AMM pools will support liquidity mining and swap tournament. Liquidity mining incentivizes LPs in the relevant pool, while swap tournament rewards the largest swappers in the relevant pool.
Rewards for AMM LPs:
Rewards for AMM swappers:
The LRC swap tournament rewards comes from Loopring itself.
2. Orderbook: Liquidity Mining
Vesper is incentivizing the VSP-ETH & VSP-DAI orderbook pairs. An awesome experience for trading this DeFi token on orderbooks at tight spreads, low cost, and high speed.
1. AMM Liquidity Mining
- This round starts at 00:00 UTC on April 1st, 2021, and lasts for 13 days.
- We take random snapshots of the relevant AMM pools several times per day to calculate the size of reward each LP earns based on the average of all snapshot balances in the round.
- Rewards will be directly distributed to LP’s layer-2 accounts on the day after the campaigns end (Day 14).
- Providing liquidity is how you mine. You automatically start mining without any other user action.
- Mining does not involve locking up your funds, but the LP tokens must stay in your Loopring L2 account. If you withdraw LP tokens to the Ethereum mainnet, you cannot get mining rewards, because it will not be recorded in the snapshots. You can transfer part or all of your LP tokens to other accounts on L2, but the mining rewards will also follow.
2. Swap Tournament
- We reward the top 25 users with the most swap volumes in a pool.
- The actual size of the reward will scale based on the total reward mentioned, but maintain the same function seen above.
3. Orderbook Liquidity Mining
- For VSP/ETH and VSP/DAI, the maximum spread is 1.5%.
- The max spread means that resting limit orders within that spread range is what is rewarded.
- Other details follow Loopring v1 orderbook liquidity mining rules. Hourly snapshots, measured by order depth, tightness, and balance.
- While you can mine the orderbooks manually, orderbook miners usually love providing liquidity programmatically, so here is our API to do that, and here is Hummingbot, NIOX maker, and other market making software which connects to Loopring Exchange.
It’s worth noting that many of these projects have liquidity mining on Loopring L2 that will last beyond this single round. We will soon begin exposing the complete duration of a campaign more clearly. The ‘14 day rhythm’ will only matter for L2 payouts (payouts happening on day 14), while campaigns can last arbitrarily long. See here for more discussion on this point in our community forum.
That’s it! Happy liquidity providing, swapping, and market making. All fast, gas-free and secured by Ethereum. Thank you for experiencing L2 early on! And thank you to the amazing projects helping usher in the era of Ethereum rollups with these liquidity incentives. You are democratizing DeFi to those who cannot find their way in 500 gwei days on Ethereum.
If you (as a token project or just a large token holder) want to incentivize liquidity of a token on Loopring L2 in a future round, please fill out this form.
Unsure how to use the Loopring L2 Exchange? No worries, follow this step by step tutorial.
Loopring Exchange on Web: https://exchange.loopring.io.
Loopring Smart Wallet app on mobile: https://loopring.io.
Loopring API: https://docs3.loopring.io.
For any questions, feedback, or to join the community of Loopringers, feel free to join our Discord.
Loopring is an Ethereum zkRollup protocol for scalable, secure exchanges & payments. Loopring builds non-custodial, high-performance products atop our Layer-2, including the Loopring Wallet — a mobile Ethereum smart wallet, and the Loopring Exchange — an L2 orderbook and AMM DEX. To learn more, you can sign up for our Quarterly Update or see Loopring.org.