The first Web3-native referral marketplace for LIQUIDITY POOLS is now live!
Here’s how to set up promotions for your own Liquidity Pools
Attrace allows users to promote tokenized assets in a trustless decentralised manner and receive bounties for the people who join through them. This Web3 based promotion works via the referrals or promotions facilitated by the Attrace Referral Network.
Attrace recently announced the launch of the Attrace Referral Program for IDOs. This offering will now be expanded to the next use case — the first Web3-native referrals for LIQUIDITY POOLS. Projects are often faced with the issue of not having enough liquidity on decentralized exchanges. With Attrace, you finally have a solution to improve the liquidity of your project, breing clear value:
- You will get traction as it incentivises promoters to earn yield without allocating capital
- No cure, no pay.
- No integrations needed - the setup process is very straightforward, comparable to a pure plug-and-play solution.
- Enables access to a new audience and the ability to truly leverage the value of an audience. Setting up an Attrace Liquidity Pool Referral Program brings about a number of benefits for your project through far-ranging network effects, such as increased word-of-mouth referrals, a stronger and more engaged community, and general publicity.
This article will give you all the necessary know-how on how to set up an Attrace Liquidity Pool Referral Program to further promote and eventually increase you liquidity pool:
Here’s how to get started:
Start by heading over to the Attrace Referral Marketplace https://market.attrace.com/, connect your MetaMask account (MetaMask will pop-up automatically) and click on ‘Set up referral’. Make sure MetaMask is set to the correct network — Ethereum if your project is Ethereum-based and Polygon if you are building on Polygon.
Next, choose the ‘Liquidity Pool’ option and you’ll be redirected to the next page, where you have to fill out some details about your project.
Pay attention to your inputs as better wording now will eventually lead to a more successful referral campaign down the line. Also, ensure that your project logo is of high quality and with the right proportions (240 x 240 px is recommended, max 3 Mb. PNG, JPG, GIF are supported).
After completing Step #1, Step #2 will require you to fill in the additional details of your Liquidity Pool, including your preferred DEX (more exchanges will be available soon), native (e.g. ERC-20) token, the liquidity pair and the LP contract address.
Note: In case Farming is possible on the trading pair you want to promote, make sure you also add the Liquidity Farming address, to ensure that this is taken into account by the Attrace Verifier Network when calculating commissions. (Also to ensure the verifier network is aware that LP staked assets might move again because of the farming.)
Nest comes the most interesting part — the referral details!
Here, you will have to determine a Bounty Budget and a Bounty Monthly Rate. As every project and referral program is unique, we can’t give you a one-size-fits-all solution to how to fill these. However, we can give you some tips:
Bounty Monthly Rate
This is basically how much bounty, expressed as a percentage of your native token (and paid for in native token), you are willing to pay for the additional liquidity achieved. For a mid-size project, we’ve learned that offering a Bounty Monthly Rate between 5% to 7% per month, where you allocate half (2.5%-3.5%) to the promoter and half (2.5%-3.5%) to the end-user/purchaser, could be sufficient for a successful campaign. For smaller projects, the percentage should perhaps be a little higher and vice versa for a project of a different size.
Total Bounty Budget
Once you have decided the Bounty Monthly rate, you will need to estimate and eventually decide how successful your campaign might be and based on that set your Bounty Budget. For example, if you expect your liquidity pool to go up by 1.000.000 (any fungible token) as a result of the promotions, and your Monthly Bounty rate is set to 5%, you should lock a minimum of 50.000 (any fungible token) into your Bounty Budget.
- Note 1: In case your Bounty Budget turns out to be insufficient you can add additional bounty to your referral/promotion program later on during the campaign.
- Note 2: If by the end of the month your bounty is insufficient to compensate all referrals and there is no top-up, the bounty that is available will be allocated pro rata. Of course, this will be damaging for your reputation and probably affect your future Liquidity Pools. It is therefore essential you commit a bounty budget that gives confidence to the promoters.
- Note 3: Conversely, in case you’ve set the bounty budget too high you will be able to reclaim the remaining funds after the promotion period is over.
Bounty Distribution relates to how much of the total allocated bounty will go to promoters and how much will go to the end-user/purchaser that eventually provides the liquidity. You can always adjust this to your own preference, but if you want to opt for the above example (2.5%-3.5 to the promoter and 2.5%-3.5 to the end-user/purchaser), you can set the bounty distribution to 50–50, which means an equal commission of the total to both promoter and purchaser.
Some additional advice: Be mindful of the incentive for end-users/purchasers to connect their wallet address for registration. The basic minimum to assure there is enough of an incentive is probably around 2,5% monthly bonus of the purchased tokens.
Registration and Promotion Periods
As a last step, you will need to specify the Registration and Promotion Periods. Registration Period is the time given to promoters to sign up and mint their personal promotion link. Note: Only after the Registration Period for promoters is closed, will the actual promotion begin. For example, if you want the liquidity promotion to start as soon as possible, you need to decide how long it will take to onboard enough promoters. We suggest a minimum of 2 days to give the Promoters a chance to become a promoter.
Once the registration period is closed no new promoters can sign up for the referral (promotion) links. The main reason for this is to avoid fraud: By closing the option to become a promoter closed before actual promotion starts, buyers cannot try to become a promoter themselves to get the extra (promoter) bonus. Note: Soon, Attrace will implement a functionality where you can whitelist promoters which could then be added after the registration period has been closed. This would be for promoters you are familiar with.
The Promotion Period
This is the total time of promotion. The days of actual promotion you can decide for yourself. Best practice seems to be 15 to max 30 days however this is totally up to you.
Total Network Fee
The ‘Total Network Fee’ is the amount of Attrace (ATTR) tokens required to set up a Liquidity Pool Referral Program. The fee is distributed as follows:
- A: as additional promoter commission (20% of total ATTR)
- B: as additional bonus to purchasers (20% of total ATTR)
- C: as a service fee to Attrace Verified Nodes who verify transactions (60% of total ATTR)
Eventually, the total ATTR required and its allocation will be decided by the Attrace community. This given that ATTR is a functionality and governance token, once Attrace functions as a fully-fledged DAO.
After you’ve added all the relevant information, check to ensure that all your inputs are correct. Now, on to the last step:
This is the ‘Confirmation and Deposit’ page, where you can check everything again and adjust accordingly if there are any mistakes. If everything looks good, go ahead and click on ‘Confirm and deposit’ at the bottom.
Congrats! It is now time to get the picks and shovels ready.
Stay tuned and keep checking our blog and Twitter for updates. We will regularly publish similar content to show you how Attrace works.
Attrace is the first referral marketplace for the Web3 ecosystem. Delivering a decentralized and trustless solution to address gaps in Web3 referral marketing, Attrace currently offers Ethereum and Polygon integrations for IDO’s Liquidity and Staking Pools, with NFT referrals to follow shortly.
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