🚰Liquidity Mining
Last updated
Last updated
SHFL Liquidity mining rewards were suspended following launch of the SHFL Lottery. If you have previously provided liquidity using Merkl, please stake your SHFL in the Lottery for your chance to earn rewards!
Shuffle is committed to ensuring the long-term viability and liquidity of the SHFL token. As part of this strategy, 2% of the SHFL supply will be allocated to a liquidity mining program. This initiative is designed to significantly enhance the on-chain liquidity of the SHFL pool. Liquidity mining, a key mechanism in decentralised finance (DeFi), incentivises users to supply liquidity to a token pool by rewarding them with additional tokens. Over a period of 3 years, participants in the SHFL liquidity mining program will receive SHFL tokens as rewards for contributing to the liquidity pool.
What is Liquidity Mining?
Liquidity mining is a process where token holders contribute their assets to a liquidity pool, which then facilitates trading, lending, and borrowing on a platform. In return for providing liquidity, participants are rewarded with additional tokens from the platform. This creates a self-sustaining ecosystem where liquidity is constantly maintained, allowing for smoother transactions and enhanced platform stability.
How It Works
Participants in the liquidity mining program lock up their tokens in a smart contract that powers a decentralised exchange or lending platform. These locked tokens provide the necessary liquidity for other users to trade or borrow - as compensation for locking up their tokens and thus providing liquidity, participants earn rewards in the form of additional SHFL tokens. The rewards are typically distributed proportionally based on the amount of liquidity each participant contributes to the pool.
Benefits for the SHFL Token
Enhanced Liquidity: By incentivising token holders to contribute to the liquidity pool, liquidity mining ensures that there is always enough liquidity for SHFL transactions. This reduces slippage and makes it easier for users to buy and sell SHFL without significantly affecting its price.
Increased Adoption: The promise of earning rewards attracts more participants to the platform, increasing the adoption and circulation of the SHFL token. As more users engage in liquidity mining, the SHFL ecosystem grows stronger and more vibrant.
Price Stability: With more tokens locked in liquidity pools, the circulating supply of SHFL is effectively reduced, which can help mitigate price volatility. Furthermore, the constant demand for SHFL tokens to participate in liquidity mining can exert upward price pressure, benefiting token holders.
Community Engagement: Liquidity mining fosters a sense of community and participation among SHFL token holders. By contributing to the platform's liquidity, users directly contribute to its success and are rewarded for their efforts, creating a loyal and engaged user base.
Details regarding our partner for the Liquidity Mining program will be disclosed at a future date. This information, along with other relevant updates, will be communicated through all official Shuffle social channels.
Merkl Liqudity Mining
SHFL will use Merkl for our liquidity mining incentives. Merkl is easy to use, allowing users who have already LP'd in the SHFL-USDC Uniswap Pool.
Our Merkl pool will be reseeded every friday with updated weights to ensure that SHFL has ample liquidity. Each week 128,205.13 SHFL will be rewarded to liquidity mining on the most liquid pair.
From Merkl's documentation: Precisely speaking, for a given pool with two tokens (A and B), the script looks into the swaps that took place on the pool during the period for which it is ran and computes a reward score for each position according to:
the fees earned by the position during the period, which represent the liquidity of the position used by the pool
the amount of token A held by the position during swaps on the pool compared to the total amount of token A in the pool
the amount of token B held by the position during swaps on the pool compared to the total amount of token B in the pool
In our case, token A is SHFL and token B is USDC.
SHFL Liquidity Mining Weights
| Week | Weekly Rewards | Weights (SHFL:USDC:SWAPS) |
|---|---|---|
Mar15-Mar22 | 128,205.13 | 45:45:10 |
Mar22-May25 | 128,205.13 | 10:10:80 |
May25-Oct18 | 128,205.13 | 5:90:5 |
Oct18-Present | 0.00 | N/A |
Merkl works like this:
To receive rewards listed on Merkl, you can provide liquidity directly to one of the listed pools, or to one of the supported position / liquidity managers. If you are using a liquidity manager, be careful to understand how the liquidity manager rebalances liquidity.
Merkl comes with an anti DoS filter which means that positions with less than $20 of liquidity are not eligible for incentives.
The main choices you need to make when adding liquidity are:
how tight should the position’s range be
what should the split between the two tokens be
For example, a tight range will virtually provide more liquidity and earn more fees and rewards. However, it has more chances to become out-of-range and suffer from impermanent loss.
Once you have provided more than $20 of liquidity, no additional steps are required to start receiving your rewards. You will be able to claim them directly from the Merkl page or from any other app which integrates Merkl. In particular, you will not need to stake your tokens anywhere else. If you were providing liquidity on a pool (directly on the AMM or through a liquidity position manager) before the incentive was created on Merkl, you will also be eligible to claim your rewards when they are distributed.
