Uniswap eXRD Launch and Liquidity Mining
After a successful token sale, the eXRD token will be distributed to participants and will trade on Uniswap on 17 November.
Note: eXRD will not be available before 17 November. Any ‘eXRD’ token you see for sale before then is a scam. The eXRD token id is given on the Radix website. Fraudulent tokens may have the same name, but the id is unique. Therefore always check the token id before trading.
Uniswap is the largest and most popular decentralised exchange. In fact, it’s the largest DeFi initiative of any kind, with around $3 billion in total value locked (TVL) in its liquidity pools. One of the things that has helped drive it to its position as such a giant in the space is its yield farming approach, providing rewards in the form of UNI tokens to users who make their digital assets available for liquidity.
Radix is taking a similar approach to ensure the market for eXRD is deep and liquid from day #1. A liquid market is absolutely essential for the success of Radix (or any crypto project). It allows participants to buy and sell efficiently, converting between eXRD and other currencies freely. In thinly traded markets, where few tokens are traded, large or even medium-sized orders can move the market, pushing the price up or down and causing problems for those who are trying to buy and sell at a desired price. Liquidity therefore brings additional value to the token in its own right. It will also become critical for many of the DeFi applications that use Radix and its tokens.
So, in addition to being able to buy and sell eXRD on Uniswap, there will also be 200 million eXRD made available over 6 months to those who lock their tokens in Uniswap’s liquidity pools – pretty well up to mainnet launch.
Uniswap and Automated Market Makers (AMM)
Uniswap is a neat example of a decentralised exchange (DEX) that operates via an Automated Market Maker (AMM).
While regular exchanges match users’ buy and sell orders, AMMs take a different approach. Instead of trading peer-to-peer (P2P) with other users, you trade peer-to-contract (P2C) with the AMM.
The AMM smart contract has access to pools of liquidity – reserves of tokens, provided by users. Instead of the price of a token being determined by what’s on the order books, as is the case with a regular exchange, AMMs determine the price algorithmically. The more buyers there are, and the more tokens purchased from a pool, the higher the price is set. This avoids the various problems and complexities of creating on-chain order books, while still ensuring price is linked to supply and demand.
So why do users provide their tokens to these liquidity pools? Because there are rewards for doing so – and you can get in on the action.
How to participate in eXRD liquidity mining
Participating and earning a share of these eXRD is straightforward. Once you’ve received your eXRD, or purchased them from Uniswap, simply:
Join the Radix liquidity pool by locking an equal amount of eXRD and USDC. You’ll receive a digital receipt of your tokens.
Provide Radix with proof, by visiting the Radix liquidity mining page and depositing your digital receipt.
You’ll continue to receive eXRD as long as your tokens are locked in the pool.
The Radix team has created some official guides to help engage with Uniswap and join the liquidity mining programme:
Check out this handy video for more details:
You can read more about the schedule of distribution of liquidity rewards at https://www.radixdlt.com/post/e-radix-liquidity-incentives.
Your Radix Team
Latest news on Radix
Check out our latest blog posts and updates
Radix Push 2021: Social Media Goals and Strategy
Win Up To $50,000 in the Radix Trading Contest!