Unveiling RadixPlanet’s Innovative Liquidity Mining Program
Introduction:
As the world of decentralized finance (DeFi) continues to evolve, RadixPlanet is spearheading a groundbreaking liquidity mining program that aims to revolutionize the way we interact with cryptocurrencies. Built on top of Radix’s distributed ledger technology, RadixPlanet introduces a new AMM-based DEX that allows users to create custom liquidity pools using tokens of their choice. With its unique governance token, $Planet, and innovative liquidity mining rewards system, RadixPlanet aims to provide a dynamic and rewarding experience for liquidity providers.
Radix, A Different Structure:
Unlike traditional cryptocurrencies built on Bitcoin’s blockchain technology, Radix utilizes its own distributed ledger technology. This distinct structure offers enhanced scalability and efficiency compared to legacy systems.
RadixPlanet DEX:
At the heart of this initiative is the RadixPlanet DEX — an Automated Market Maker (AMM) platform designed for seamless token swaps. Built on top of the secure and scalable Radix Ledger, this DEX empowers users to create custom liquidity pools based on their preferences.
Public vs Private Pools:
RadixPlanet offers both public and private pools for users. Public pools have immutable rules regarding included tokens and cannot be changed after creation. On the other hand, private pools are managed by a designated pool manager who has control over modifying pool rules and adding or removing tokens as needed.
Rewarding Volume-Oriented Liquidity Providers:
In an effort to incentivize continuous participation from liquidity providers, rather than time-based incentives alone, RadixPlanet adopts a volume-oriented approach with its liquidity mining rewards program. By creating unique liquidity mining tokens called Planet_LM for each pool, participants can earn these tokens with every swap they make or for providing liquidity.
The Collective Liquidity Mining Pool:
To further reward participants who provide liquidity or trade through our platform while holding Planet_LM tokens, RadixPlanet will establish a collective liquidity pool consisting of all Planet_LM tokens alongside $Planet itself — a governance token within this ecosystem. Holders can redeem their Planet_LM tokens in exchange for $Planet as a form of reward.
Dynamic Value Appreciation Mechanism:
By periodically adding $Planet into the collective pool through buy orders (and subsequent burning), each purchase affects how much specific Planet_LM tokens get burned — thus impacting their value appreciation accordingly.
Favoring $Planet liquidity providers:
Liquidity providers to the XRD_PLANET pool will be favoured through the selling of $Planet to buy the Planet_LM token, generating additional rewards for users who are using their Planet token for providing liquidity to this specific liquidity pool.
Compound Rewards:
While users get rewarded for trading and/or adding liquidity to various liquidity pools on RadixPlanet, an additional — and limited — opportunity will be allowed in the future for users — instead of selling their earned Planet_LM tokens — they can add them back into liquidity pools as liquidity, allowing them to get extra rewards on their original rewards.
Flexibility Through Community Proposals:
As the created liquidity mining pool will be an index pool, all $Planet_LM tokens will initially have equal weights, RadixPlanet encourages community engagement in shaping the future dynamics of its protocol by allowing suggestions for changes in trades order or even modifying weights assigned to different Planet_LM Tokens within the collective pool.
Controlled Private Pool & Limited Availability:
While private pools controlled by community members are excluded from being added into the collective liquidity mining pool initially; public pools as well as private pools controlled exclusively by RadixPlanet will be included — allowing flexibility in managing available assets over time.
Fair Distribution Strategy:
To ensure fairness during distribution events, RadixPlanet plans a gradual strategy where daily additions start at 1000 $planet increasing gradually to ensure a fair distribution among participating individuals.
Summary:
The RadixPlanet liquidity mining program can be summarised as follows:
- The creation of a collective liquidity pool containing all $Planet_LM tokens along with the $Planet token.
- Periodic injection of additional $Planet liquidity into the collective liquidity mining pool by executing multiple sequential buy orders for all $Planet_LM tokens included in the pool and burning them
- The pool named XRD_PLANET’s $Planet_LM token will be bought with double the amount compared with other $Planet_LM tokens, rewarding $Planet token liquidity providers to this specific pool with approximately double the amount of rewards for providing liquidity for $Planet token. Initial weights of the trades will be as follows:
1. 2X to buy and burn $Planet_LM for the pool XRD_Planet
2. 1X to buy and burn each $Planet_LM for all other pools
The initial trades order will be as follows:
1. $Planet_LM token of the pool XRD_Planet
2. All other pools sorted by the creation date of the pool
Note: as all already created $Planet_LM tokens were configured with immutable configuration that does not allow them to be burned by anyone but the component that created them, bought $Planet_LM tokens for old pools will not actually get burnt, but it will be set aside in a separate account effectively excluding them from circulating supply which will give nearly the same result as actually burning them, configuration of $Planet_LM tokens for new pools will take this into consideration to allow actual burn of those tokens.
Conclusion:
With its innovative approach towards building an efficient AMM-based DEX backed by robust distributed ledger technology; RadixPlanet sets out to redefine how we engage with DeFi platforms through their upcoming release of Liquidity Mining Program.
From customizable public/private pools featuring dynamic rulesets driven by volume-oriented incentives; combined with controlled inclusion strategies applied towards creation/redemption mechanisms — RadixPlanet creates opportunities that align user interests while fostering growth across an expanding ecosystem.