One area that has catalyzed the explosive growth of the DeFi sector has been automated market makers using a mathematical formula to price assets instead of using order books like traditional exchanges. AMMs serve as decentralized exchanges allowing users to swap tokens without counterparties. To attract individuals to these platforms, various innovative features have been added, such as earning rewards by providing liquidity and so on. Today there are over 60 DEXes within the market, and the notion is they have exhausted the incentives that attract users to engage in liquidity mining.
Most of these protocols are just the same version of existing platforms with a different name and don’t offer something unique to entice liquidity providers. The AMMs market has been stagnating, and many experts have felt that a change of thinking is needed moving forward. This has inspired the rise of the likes of EmiSwap, a protocol that aims to drain liquidity from the bigger protocols to its platform by offering users unprecedented benefits.
The DEX was launched two months ago and has garnered over $250,000 in total value locked (TVL) or liquidity and has managed to attract over $1.3 million in investment so far. The exchange is governed by the EmiDAO ecosystem, with consistent customer support, a proven network that protects user data and assets, and it has passed a security test by Hacken, a leading blockchain security company.
According to Grigory Rybalchenko, CEO and founder of EmiSwap
“We followed a strategic thinking process, detailed analysis of blockchain values and fees, and a variety of methods and formulas to make our offering valuable and unique. We started our company not just for the sake of starting but because we believe in its power. Today, we rest assured that our product is unique and ahead of the game.”
How EmiSwap Aims To Attract Liquidity Providers
The platform aims to use bonuses and other benefits to attract users, such as 100% gas fee reimbursement. This means for any transaction you execute on the platform; you will be compensated fully. And if you are an early bird, you are likely to receive 100% more rewards.
According to the platform’s website, 30,000 ESW tokens will be distributed among liquidity providers in proportion to each 1 million Dai trading volume from 11th to 1000th day after launch. From the 11th to 40th day after launch, the platform will issue 6,150 ESW tokens after every 1000 blocks. The tokens will be shared among LPs based on the liquidity they provide.
Since ESW is a governance token, holders will earn 0.05% of regular trading volume and participate in voting for product innovations. Additionally, regular liquidity providers will receive 0.25% from any operation on the platform.
Provide Liquidity And Win NFT Cards
Another aspect that is likely to appeal to liquidity providers will be the chance to win NFT cards that will add to the many passive income streams discovered on the protocol. The platform will reward LPs with limited edition non-fungible token cards that will allow them to use the exchange, trade on various markets, and even compete in many special tournaments such as prestigious Card Wars.
To receive the limited collection of 1001 NFT cards, you will have to allocate at least $100,000 in TVL, and whenever you cross that mark, the rarer the card you will get.
Looking at existing AMMs, it’s easy to see how EmiSwap, through its innovative product, is pioneering a paradigm shift in how LPs can be incentivized to participate in AMMs, thereby renewing interest and overall growth of the sector.