Introducing: SAND Liquidity Mining
- In Phase 1, today, we are launching our SAND Liquidity Mining program with 1,500,000 SAND fixed amount per month distributed in Rewards
- In Phase 2, in coming weeks, we will introduce Yield multipliers based on LAND NFTs ownership.
Decentralized Exchanges (DEXs) like Uniswap have played a fundamental role in the incubation of new tokens over the past year. Outside of listing on premier centralized exchanges (Binance, WazirX, Upbit, Crypto.com…) , The Sandbox wants to ensure SAND has deep market liquidity for permissionless, non-custodial trading. In the spirit of DeFi, The Sandbox virtual gaming world looks to further encourage liquidity on DEXs through a SAND liquidity mining program.
Traders who provide liquidity to the SAND/ETH pair starting today, September 25th will be eligible to share a monthly allocation of 1.5M SAND, currently worth ~$70k at the time of writing. Rewards are distributed pro-rata relative to a traders’ percentage of total liquidity over the course of a one month period.
To qualify for rewards, liquidity providers will need to stake their SAND/ETH Uniswap LP tokens via The Sandbox staking dashboard at http://staking.sandbox.game
This program will run at a fixed rate of 1.5M SAND per month for the next two months. Following the end of the initial trial, the program will be assessed by The Sandbox team and continued in line with community feedback and SAND governance.
Read on for a step-by-step tutorial on how to participate.
Why Liquidity Mining?
While the SAND/ETH pair currently has ~$200k in liquidity, adding liquidity mining incentives will further seed deep liquidity, offering a strong trading venue for those who wish to trade and use SAND in a non-custodial manner.
While SAND/ETH Is the first pair being incentivized through the liquidity mining program, Sandbox will assess other viable liquidity protocols such as Balancer for future incentives.
Outside of SAND rewards, The Sandbox is exploring other creative opportunities to offer unique incentives that align with the wider NFT ecosystem.
NFTs meets DeFi
Yield should be proportionally increased relative to the number of LANDS owned; connecting virtual real estate and SAND liquidity.
The Sandbox will offer a persistent, interactive virtual metaverse — a 3D unique virtual world where players can build, own, and monetize their gaming experiences through the use of Non-Fungible Tokens (NFTs) and the $SAND utility token (the ERC-20 fungible token that serves as the main utility token of the platform).
LANDS are ERC-721 non-fungible tokens (NFTs) that represent unique digital locations in The Sandbox universe, allowing players to build and monetize games.
While LANDS act as a critical mechanism for Game Creators to monetize their creations in SAND, we will also be offering incentives that combine NFTs and SAND in a second phase of liquidity mining to apply a yield multiplier based on the number of LANDS owned.
The second phase will commence following smart contract audits for security and a native Dashboard to connect LANDS acquired on our Metaverse and during our LAND presales!
How to participate in SAND liquidity mining
- Acquire SAND either on Binance or Uniswap
- Store SAND in a non-custodial web3 wallet like MetaMask or WalletConnect
3. Head to the SAND/ETH pool on Uniswap.info and select “Add Liquidity”
4. Approve SAND transfers to add your desired amount of liquidity.
*Please note that for Uniswap liquidity, traders must provide an equal amount of ETH and SAND.
5. Deposit liquidity by confirming the transaction in your wallet.
*Watch out for gas prices!
6. Head over to the Sandbox staking dashboard and deposit your UNI liquidity token representing your SAND/ETH Uniswap liquidity position.
7. Sit back and relax! You will start accruing SAND rewards in real-time which can be claimed at your convenience.
*Uniswap liquidity provisions may be subject to impermanent loss. This means that if the price of one token outperforms the other, the underlying liquidity position will rebalance, resulting in fewer tokens of the asset which increased in value, and more tokens of the other side of the pair.
In the coming weeks, The Sandbox Game will introduce new liquidity mining programs geared towards early adopters.
Phase two yield multipliers will serve as the first of many benefits LAND holders receive for owning digital real estate in the growing Sandbox world.
Outside of SAND liquidity mining, The Sandbox is working closely with other NFT creators to curate a suite of incentives and crossovers to give SAND holders rewards outside of Sandbox-native assets.
We encourage all SAND holders to reach out about any questions regarding liquidity mining on Discord, as well as joining the wider discussion around liquidity mining, asset mining and the journey ahead!
As a friendly reminder, LAND sales happened last week and all sold out in minutes. This was the first SAND-only presale, signaling the start of many SAND use-cases to come. For more information on the round, check out this article and be on the lookout for details about the upcoming round(s) shortly!
In the meantime, be sure to keep a close eye on our community channels (below) for plenty of exciting updates to come.