BBS.exchange
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BBS.exchange

Termination of Liquidity Farming

The reason for the discontinuation and our alternate solution to introduce more liquidity to ACDX

Starting today, Liquidity Farming will be terminated at ACDX. Makers will no longer receive extra ACXT for their filled maker orders.

What is Liquidity Farming at ACDX?

The ACXT Liquidity Farming Program is a market maker incentive program in which makers can earn additional ACXT by providing liquidity to ACDX. The rewards will be distributed when the maker order is filled.

Why did we introduce it in the first place?

We introduced liquidity farming based on 2 main reasons:

  1. Stability: The more liquid a market is, the more stable it is. A high transaction volume in the order book (liquidity) is crucial to stabilizing the asset values. Therefore, we incentivize users to provide liquidity.
  2. Accuracy: When the market is stable, and in other words, predictable, sophisticated traders can be more able to rely on their analytical strategies to make accurate trading decisions.

The impact

30% of the total amount of ACXT is reserved as incentives for makers. It means 10266.94 ACXT will be unlocked daily for makers.

Why do we decide to terminate the program?

The decision is made based on 3 main reasons:

  1. Community: We have been receiving feedback that the Liquidity Farming program is causing a strong, constant selling force on the ACXT market. Since makers have been selling their ACXTs for profit. Users reflected that they wish ACDX to discontinue the program.
  2. Ecosystem: While liquidity farming created a utility for our native token, it does cause a downward force on the price of ACXT. While makers are compensated for their contribution to liquidity, investors are not fully benefited from their support of the token.
  3. Development: For the long-term development of the token price and the exchange, we want to encourage users to hold our tokens for a longer term.

The alternate solution for liquidity

To ensure good liquidity at ACDX, we will replace liquidity farming with an improved market maker program. Market makers will receive a better discount for providing liquidity at ACDX. If you’re interested in being a market maker at ACDX, feel free to contact us at enquiries@acdx.io.

Again, we thank our community for the feedback and support to ACDX. We will continue to improve the exchange and build a better ecosystem with our best efforts.

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involves significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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BBS.exchange is the world’s first exchange offering crypto structured products.

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