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Loopring to introduce Automated Market Maker based Liquidity Mining

Loopring to introduce Automated Market Maker based Liquidity Mining

Ethereum zkRollup Protocol, Loopring, is planning to launch liquidity mining incentives on the platform. Looping intends to join the liquidity mining gold rush by introducing mining programs. It involves Layer 2 based AMM liquidity mining, a swap tournament, and order book liquidity mining. Moreover, it plans to launch the mining programs by the end of December 2020.

Loopring’s AMM Liquidity Mining to incentivize Liquidity Pools

According to the blog post, following the initiative’s launch, they will distribute 1.7 million of its native LRC tokens. Moreover, the initial liquidity mining campaign will incentivize three liquidity pools. It involves ETH/USDT, LRC/ETH, and WBTC/ETH, with awards of 400,000 LRC for each pool. Moreover, the blog post emphasizes that the mining will take place in 14-day cycles. It will take random snapshots of the applicable AMM pools numerous times a day and determine the number of rewards each LP scores based on the percentage of all snapshot balances in the cycle.

Moreover, it states that Mining does not include locking up funds; however, the LP tokens must remain in the Loopring layer-2 account. If one transfers LP tokens to the Ethereum mainnet, they will not receive mining rewards. This is because it will not appear in the snapshots. One can transfer partial or an entire lot of LP tokens to other accounts on Layer-2. However, mining rewards will also accompany the transfer.

Loopring launches native wallet

Loopring says one should use its native smart wallet phone app, Loopring Wallet, to combine or split up liquidity. Thus, earning an additional 5% mining reward. Recently, Loopring declared the release of the beta version of their Loopring Wallet. This Ethereum smart wallet is the head with baked-in zkRollup scaling. Loopring thinks this is Ethereum’s first impression of its growing financial system to penetrate in the classical finance world. 

Moreover, the wallet is described as Hebao in the Chinese Loopring community. The wallet is a mobile-friendly Ethereum smart contract wallet. Moreover, with smart contract wallets, users can experience flexibility, a fabulous user experience, and security. With zkRollups, nevertheless, users can utilize more with the wallet. It ensures whole Ethereum layer-1 security and assures large scalability assistance. It also offers 1000x lower fees and 1000x more elevated throughput. 

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