Decentralized Finance (DeFi) lending platform Orion Protocol has launched its first liquidity mining program on Uniswap. Liquidity providers (LPs) will receive 30,000 ORN tokens as weekly rewards in the ORN/ETH fund pool.
💠 There will be 30K $ORN token will be distributed to its users who deposited on ORN/ETH liquidity pool
— 🌐 DeFi News 🌐 (@Definews_Info) October 20, 2020
However, to further incentivize long term liquidity providing, Orion Protocol will implement a time-based reward system for LPs. Beginning November 16, there will be an 80/20 split of the LP reward pool of ORN.
LPs who commit liquidity to Uniswap receive 80% of the rewards proportionally. While 20% will belong to those who have continuously provided liquidity for the previous month starting from October 16.
The liquidity mining program seeks to provide a decentralized alternative to its existing multi-exchange pre-staking initiative. Following then, reward allocations will be proportional to the participants’ contributions to the pool. Orion has also offered guidelines on how to participate in the program.
Furthermore, a dedicated smart contract will determine the ORN token payouts. Thus, they will be higher for liquidity providers who keep the funds within the pool longer.
Built on the most advanced liquidity aggregator ever developed,
Orion Terminal seamlessly aggregates bottomless liquidity from all major exchanges, centralized and decentralized.
This means users are able to access any of the expected 10,000 trading pairs from a single terminal.
Users remain in control of their crypto until the exchange has happened since all transactions in the protocol are noncustodial. The Orion stack also includes decentralized lending, and both the brokerage and decentralized lending functionalities rely on market-leading Chainlink oracles for reliable price signals.
Uniswap liquidity pools (LPs) function as automatic market makers, based on Ethereum-based smart contracts. Each Uniswap liquidity pool is a trading venue for a pair of ERC20 tokens. When a pool contract is created, its balances of each token are 0; in order for the pool to begin facilitating trades, someone must seed it with an initial deposit of each token.