- Loopring’s zkRollup AMM will be launching liquidity mining rewards and other incentives at the end of December.
- The project will distribute a total of 1.7 million LRC within two weeks from program launch.
Loopring has announced a multiple mining rewards program for the end of December this year. Following the deployment of Loopring Exchange v2 (exchange.loopring.io) based on Loopring Protocol 3.6, the project announced that they will initiate multiple mining programs around the end of December 2020, including a L2 AMM Liquidity Mining, AMM Swap Tournament, and order book Liquidity Mining.
Ethereum’s second layer DeFi protocol aims to create incentives to attract more users to its automated market maker (AMM). Therefore, Loopring will distribute a total of 1.7 million LRC within two weeks from program launch.
In conjunction, Loopring has launched an Android mobile wallet with native integration for making swaps with its AMM. The protocol has also added new functionality to its decentralized exchange such as the ability to make gas-free swaps and remove or add liquidity on Ethereum’s second layer.
The team behind Loopring wants to promote the migration of users from the platform to the second layer. That way, congestion on the mainnet would be reduced, transaction fees would be more stable, and the entire ecosystem would benefit.
Loopring's zkRollup AMM will be launching liquidity mining rewards — and other incentives — at the end of December.
It's time to get Layer 2 liquid, and pull Ethereum & DeFi into its scalable future. A quick thread on the first cycle of programs 🧵https://t.co/HOpxuL2U5M
— Loopring💙 (@loopringorg) December 10, 2020
Liquidity mining is coming to Ethereum’s layer-2
The first liquidity mining campaign will incentivize three liquidity pools: LRC/ETH, ETH/USDT, and WBTC/ETH, with rewards of 400,000 LRC for each pool. Furthermore, the Loopring team informed:
By being an LP (liquidity provider), you are automatically mining, with rewards paid to your L2 account according to your share of the pool’s liquidity.
Loopring will take random snapshots of the AMM pool on multiple occasions throughout the day. This will permit them to calculate rewards for liquidity providers base on an average balance from the 1 cycle snapshots. Users will receive rewards in LRC directly into their accounts 3 days after a cycle has culminated. Otherwise, liquidity providers must consider the following:
Mining does not involve locking up your funds, but the LP tokens must stay in your Loopring layer-2 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 layer-2, but the mining rewards will also follow.
Loopring will update the pools that will be eligible for rewards. Therefore, it is important to keep an eye out for announcements that will be made once the cycles are completed. All liquidity providers will receive 0.15% of the transaction fees on the AMM smart contract. Those users who utilize the Loopring wallet will receive an additional 5% in rewards.
The 3 reward programs will start simultaneously. For the Swap Tournament 100,000 LRC will be given to 3 pools (ETH/USDT, WBTC/ETH, LRC/ETH) and for the order book liquidity mining, an additional 100,000 LTC will be given for two pools with the pairs: USDC/USDT, DAI/USDT.
The Loopring team estimates that there will be a positive impact on the price of LRC and therefore benefits all holders. In addition, Loopring announced the following:
Bonus: if you want to mine something before December’s end, note there is currently Withdrawal Mining happening for the Loopring Mobile Wallet. Still 500k LRC in rewards payable over the next 15 days, for simply holding 6 types of assets in the wallet.
