Liquidity Mining Mechanism

IDL Swap
IDLSwap
Published in
2 min readJan 12, 2021

The IDL system adopts a unique liquidity mining mechanism, in which governance tokens will be intelligently distributed according to the trading volume. The system automatically adjusts the weight of each trading pair in the IDL liquidity mining pool in real-time (the terms can be adjusted by community votes later).

The new weights are associated with IDL buyback and burn rates for each trading pair. The higher the IDL buyback and burn rate, or the more weight of the trade pairs for the IDL liquidity mining pool, the more activity the trade pairs have and thus the more rewards they can earn, creating a positive feedback mechanism.

To avoid extreme changes like sudden increase or decrease in trading volume, we have integrated EMA (Exponential Moving Average) mechanism into IDL Swap, which used existing and historical transaction data to reflect the actual market by liquidity.

EMA (EXPMA, EMA) is an exponential moving average and is a trend indicator. The principle uses the arithmetic average of the closing price to determine future price trends. The EMA metric focuses on the weight of the day-to-day price of the formula compared to the MACD metric and the DMA metric, which can overcome the delay of MACD in price prediction. In some specific ranges, EMA also pre-eliminates DMA expectations. Therefore, it is a very effective trend analysis indicator.

Follow the IDL Swap official community:

Homepage: https://idlswap.io/
Telegram (ENG): https://t.me/IDLSwapEnglish
Telegram (KR): https://t.me/idlswap
Twitter: https://twitter.com/idlswap
Github: https://github.com/IDLSwap
KakaoTalk: https://open.kakao.com/o/gT6db2Hc

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