Liquidity Pool Incentive Program
Obsidian's program rewards top ranking tokens by creating liquidity pools, collecting aggregator fees, and offering the option to add liquidity to their TOKEN/CRO pair.
Last updated
Obsidian's program rewards top ranking tokens by creating liquidity pools, collecting aggregator fees, and offering the option to add liquidity to their TOKEN/CRO pair.
Last updated
Obsidian is not just a decentralized exchange (DEX) aggregator; it is a comprehensive decentralized exchange platform. In addition to providing users with the best trading rates across multiple liquidity sources, Obsidian is also committed to fostering growth in the decentralized finance (DeFi) ecosystem. We are focused on building our liquidity pool (LP) protocol, and we aim to support projects by offering them increased liquidity pools on our platform.
We are happy to introduce an exciting new incentive program designed to encourage tokens to increase their liquidity and visibility within the Obsidian ecosystem. This program rewards tokens with significant buy volume and top rankings on our leaderboard by offering them the opportunity to participate in our liquidity pool creation process.
To qualify for the program, tokens must meet two criteria:
Top 10 Ranking: Tokens that reach the top 10 on Obsidian’s weekly based on buy volume.
Minimum Buy Volume: Tokens must have a minimum buy volume of $10,000 within a given week.
Once a token qualifies, they will be eligible for the following incentives:
1️⃣ Liquidity Pool Creation
Obsidian will create liquidity pools for qualifying tokens on our platform, increasing its accessibility and exposure. The liquidity pool creation process will help ensure there is sufficient liquidity for seamless token swaps and trading.
2️⃣ Aggregator Fee Collection and Liquidity Zapping
Obsidian’s aggregator fee is 0.5% of the trading volume generated for each qualifying token. For example, if a token generates $20,000 in buy volume, the fee collected will be $100.
These collected fees will then be used to add liquidity to the token's TOKEN/CRO pair on Obsidian, contributing to the liquidity pool of that pair. Additionally, the created liquidity will be burned, helping reduce the token's overall supply and increasing its scarcity.
3️⃣ Staking Pool or Liquidity Pool Opt-In
Currently, the top ranking token receives the collected aggregator fees in a staking pool. However, if the token chooses to opt into the LP (liquidity pool) program, the fees will instead be used to increase the liquidity of the token's TOKEN/CRO liquidity pool on Obsidian. This offers more flexibility for tokens to choose between staking rewards or liquidity growth.
This incentive program will be valid for the next 2 months (starting on Nov 10th, 2024) and is subject to review and possible extension based on the engagement and participation of the projects involved. Obsidian aims to continuously improve the program and provide valuable incentives to projects that engage with the platform and contribute to the liquidity of the ecosystem.
Increased Liquidity: Tokens will benefit from increased liquidity on Obsidian, enabling smoother and faster trading for users.
Exposure: By qualifying for the top 10 on the leaderboard, tokens will receive more visibility within the DeFi ecosystem.
Liquidity Pool Incentives: The liquidity added to the TOKEN/CRO pair will help boost token value by improving its market depth.
Staking or LP Growth Options: Tokens can choose whether to receive rewards in the staking pool or opt into the LP program for liquidity growth.
Reduced Supply: The liquidity added to the pool will be burned, helping decrease the overall supply of the token and potentially increasing scarcity.
Monitor the Leaderboard: Tokens must rank within the top 10 on Obsidian's leaderboard.
Achieve Minimum Buy Volume: Tokens must generate a minimum buy volume of $10,000.
Opt-in to the LP Program: Qualifying tokens can opt to participate in the LP program, directing their aggregator fees towards liquidity growth.
Exclusions: Tokens that are already paired with $ROBIN are excluded from this program, as liquidity is already being injected for those tokens.
Obsidian’s new Liquidity Pool Incentive Program is designed to encourage projects to engage with the platform and increase liquidity, benefiting both the token holders and the broader DeFi ecosystem. This initiative highlights Obsidian’s commitment to becoming a full-featured decentralized exchange that not only aggregates liquidity but also builds and supports liquidity pools for token projects, driving value and adoption within the decentralized finance space.