V3 Liquidity Mining Kicks Off with 7 Campaigns!
We are excited to release another major milestone: V3 Liquidity Mining is now available on the Hydra DEX!
Today we are launching several liquidity mining campaigns tailored for the recently introduced V3 DEX pools, thus completing the migration process from V2 to V3 technology.
Note: V2 liquidity mining campaigns are expiring today! You can still keep your liquidity inside V2 pools and they will continue to operate as usual. However, there will no longer be liquidity mining rewards directed to them. You will rely on trading fee income solely.
— Rewards will start accruing on April 1st at 10:35 GMT —
V3 Campaigns are LIVE!
The following liquidity mining campaigns are launching today on V3 pools, thus replacing their V2 predecessors:
- 2,000 HYDRA/month for USDC/USDT (0.05% fee rate)
- 2,000 HYDRA/month for USDC/DAI (0.05% fee rate)
- 2,000 HYDRA/month for USDC/BUSD (0.05% fee rate)
- 5,000 HYDRA/month for USDC/HYDRA (0.30% fee rate)
- 5,000 HYDRA/month for ETH/HYDRA (0.30% fee rate)
- 5,000 HYDRA/month for WBTC/HYDRA (0.30% fee rate)
In addition, a new campaign is getting started for the flagship assets:
- 3,000 HYDRA/month for WBTC/ETH (0.30% fee rate)
Users can now enjoy high yields on their hedged BTC/ETH positions via the WBTC/ETH pool on HYDRA.
Migrating your V2 Liquidity
Suppose you already have liquidity positions in V2 pools. In that case, you can easily take advantage of the one-click migration feature available within the pool section to migrate your liquidity to V3 pools.
Note: You need to unstake your LP tokens before you can migrate your position.
Note: The migration tx is set to 6.5 million gas (currently amounting to 23 HYDRA). However, only ~2 HYDRA will actually be consumed, with the remaining 21 HYDRA getting refunded. If you want to avoid this, you can manually remove and add liquidity. More Info
The interface will provide you with all the necessary information you need to complete the migration process. Keep in mind that you’ll be required to set your price range and choose the fee tier during the migration.
Important: In order to participate in the campaigns, you need to choose the matching fee tier as provided in the campaign list above.
During the migration, the system will return any surplus assets that cannot be utilized within the price range you set. It’s essential to keep this in mind while performing the migration. If you wish to avoid having any surpluses, you can experiment with the price range until it is adequately balanced.
As you proceed with the migration, you’ll observe that you’re exchanging LP Tokens for an LP NFT, as shown in the below screenshots.
Staking your NFT
Once you have your NFT, you can proceed with staking it on the “Stake” tab:
👉 hydradex.org/stake
Liquidity Mining Rewards
With V3 pools it becomes important to define the price range of your liquidity carefully. Things you should consider:
- Select an active range. Your position only yields income during periods where the actual price is within your set range. E.g. if your range for HYDRA/USDC is set to $1 — $1.50 and the price of HYDRA is at $2, you won’t receive any rewards until the actual price moves into your range
- Tighter ranges yield higher rewards. If the price is at $2, then a $1.80 — $2.20 range will yield a higher APR compared to a $1.50 — $2.50 range. Higher risk = more rewards
- Be aware of impermanent loss. Tighter ranges act as a form of leverage on impermanent loss, since the capital efficiency of your assets is amplified. If your range is breached by the price, you will end up owning 100% of the underperfoming asset
If you have any questions or would like to connect with the community and team members, please feel free to join the official Telegram group. Also make sure to join the News Channel to stay up to date with developments:
👉 Follow the Hydra News Channel
HYDRA is a proof-of-stake blockchain optimized for real-world businesses. It tackles some of the most profound and challenging issues with existing blockchain economies and introduces a truly shared economy with fair treatment to all network participants.
