Following the launch of its Layer 2 high-speed automated market maker earlier this month, Loopring is now in the process of launching liquidity mining incentives on the platform.
The Loopring order book-based exchange protocol was originally launched in November 2019, and the high-speed Layer 2 based decentralized exchange was deployed the following month.
The latest v3.6 DEX went live in early December of this year, introducing new functionality such as the ability to do gas-free instant swaps and gas-free instant adding/removing liquidity as a liquidity provider on Layer 2.
Loopring Joins the Yield Farming Frenzy
Looping now intends to join the liquidity mining gold rush by enabling Layer 2 based AMM liquidity mining, a swap tournament, and order book liquidity mining by the end of December 2020.
The blog post added that a total of 1.7 million of its native LRC tokens will be distributed in the two weeks following the program launch.
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.
Mining will occur in 14-day cycles with random snapshots of each pool taken several times a day in order to calculate the rewards for liquidity providers. It added that moving funds off the L2 account would result in the loss of mining rewards;
“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.”
This marks the first protocol to offer L2 liquidity mining, which should alleviate those painful gas price spikes associated with other DEX token farming incentives.
LRC Price Update
Loopring’s LRC token has been trading flat over the past 24 hours at $0.18. Over the past week, it has fallen in line with the broader crypto market correction.
LRC hit its highest price of 2020 in mid-September when it reached $0.26. Like most older altcoins, however, it is still painfully down from its early-2018 all-time high of $2.40.
Loopring hopes that these new liquidity mining incentives will revive token prices for LRC holders.