Equilibrium is in full swing: Meet our Liquidity Mining Program with a maximum APR of >90% | by balance | balance
We are pleased to announce this EQ Blast, a program that our team developed in the background. EQ Blast Introduces Incentive-Based Liquidity Mining With A Max APR of >90%! The program adds new earning opportunities in the Equilibrium ecosystem. It will go live later this month, so follow us and be the first to know.
Equilibrium has allocated 1% of the total EQ offering or the first wave of the program. These funds come from the 10% allocation intended to incentivize liquidity bootstrapping according to EQ tokenomics. The team expects this wave to continue 4 months or until the quota is fully distributed (whichever comes first).
Liquidity providers can expect to earn additional returns on their funds tied up in Equilibrium’s pools and externally incentivized pools on Polkadot DEXs. Also, LPs can maximize their returns by combining different pools to create strategies and earn additional APR by locking EQ tokens. Let’s take a deep look at how it all connects.
This is how EQ Blast works
You must deposit funds into one of Equilibrium’s liquidity pools to start earning rewards. The EQ Blast program offers dynamic APRs based on risk and market conditions. Here is the breakdown of the options available:
Apparently, users receive an APR payment above the standard return they earn from these pools (loan interest, swap fees, and DOT staking rewards of around 14% APR at the time of writing). Users receive EQ token rewards every eight hours, with assets locked for six months.
Users can generate additional income with EQ and EQD stablecoin for reward farming in incentive-driven pools of external DeFi projects in the Polkadot ecosystem. For these purposes you might want to mint EQD with a portfolio of supported assets (see fig. 1). Joint farming campaigns will be announced on our social networks – stay tuned!
Cowardly. 1 — Supported collateral types for minting EQD
Other ways to maximize yield include creating a custom strategy or locking EQ tokens on Equilibrium. Let’s look at these possibilities below.
strategy examples
Two simple strategies at Equilibrium involve using credit and insurance pools. These are relatively easy as they can be done with a single asset and don’t require multiple steps.
A more complex strategy is to use the stableswap pool to farm rewards. This strategy requires minting EQD and pairing it with another asset (USDC) to provide liquidity.
However, the most complex and lucrative strategies require multiple assets and benefit from using different products on Equilibrium.
Let’s highlight two progressive strategies for DOT holders.
Strategy 1 involves liquid staking of DOT for eqDOT, using eqDOT as collateral for minting EQD and providing liquidity to the stableswap pool. LP tokens can then provide liquidity to the insurance pool for additional returns. This strategy generates returns in three places:
- Liquid staked DOT
- LP position in the stableswap pool
- insurance pool
Strategy 2 uses EQD to farm rewards in external incentivized pools. Instead of using EQD to provide liquidity to the stableswap pool, users can transfer EQD to another DEX on Polkadot and farm rewards in incentive pools there. This strategy generates DOT returns on liquid staked DOT, EQD returns from external pool incentives, and native DEX token rewards.
Lock EQ to maximize yield
Anyone holding EQ can lock their holdings for a period of time to multiply their rewards. There are seven options ranging from lock-up periods of 1 to 24 months. Users can get a reward boost of up to 3.4x this way.
By participating in the EQ and EQD farming pools, EQ owners can earn additional rewards and get new users to ban EQ from secondary markets. The multiplier only applies to the part of the portfolio that corresponds to the value of the locked EQ tokens. For example, a user who locks $100 worth of EQ can expect enhanced rewards for up to $100 of assets in their portfolio.
frequently asked Questions
Those APRs seem low. How do I earn more?
These are base numbers. Other articles discuss in depth additional multiples that allow for more attractive returns of >90% maximum.
How do I get the maximum APR?
In the next few articles, we’ll be sharing a detailed breakdown of the strategy and a guide to hitting the maximum APR – stay tuned!
When will EQ Blast be live?
Stay tuned for more announcements on our social networks!
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