UPDATE: DeversiFi has closed its trading rewards programme, effective Monday May 16, 2022 at 00.01 GMT+1.
We have closed the trading rewards programme with a view to creating a better rewards structure for our entire community, and we will be rolling out new initiatives in the coming weeks.
Further information on the liquidity part of our rewards programme will be provided in due course.
Our rewards programme is a twin project to reward both traders and liquidity providers. Through this programme, we intend to build our community, reward our most loyal supporters and share the governance of our platform.
On one hand, you can earn DVF tokens simply by trading on DeversiFi. These tokens give you a piece of our protocol: they allow you to vote on all the crucial issues around governance and direction, and even suggest your own changes.
In parallel, you can swap tokens in one of our brand-new AMM liquidity pools. This means you’ll benefit from instant, permissionless transactions: the liquidity is pre-filled, so you don’t need a partner on the other side of the deal. As time goes on, these pools will be filled by our community, meaning you’ll have the chance to earn even more rewards.
As they evolve, the two strands of this programme will forge a symbiotic relationship. The traders will provide greater rewards for the liquidity providers, who will in turn create an ideal environment for trading. The faster this cycle spins, the quicker our AMM pools will grow, and the sooner we’ll achieve our goal of making DeFi accessible to everyone.
In this post, we’ll explain the reasons for phasing our project in more detail, and outline what the programme will consist of. As a TL;DR, this is what you can expect to find out:
- What our programme consists of.
- How we’re building something unique.
- Which we’ve decided on a phased approach.
The Phases
This initiative has been divided three specific phases.
Phase 1, late 2021: Trading rewards and trade-only AMMs. In the first stage of our programme, we offered everday traders the chance to earn a share of their trading fees back as a DVF gift. The total value of the rewards pool was 25,000 DVF ($402,250 at the time of launch).
At the same time we launched the first six AMM markets in ‘trade-only mode’. The liquidity pools were whitelisted, meaning that only DeversiFi Labs could provide liquidity at first (although we claimed no rewards for this).
The first six markets were as follows:
- DVF/ETH
- CRV/ETH
- LDO/ETH
- MPL/ETH
- RAI/ETH
- MATRIC/ETH
Phase 2, early 2022: Initial upgrade. Following that initial launch we made a number of improvements to the trading pools. These included switching on market-routing, which enabled other markets to tap into the trading pools: this allowed us to create a mix of traditional, order book-based trading and AMMs (more on this below).
Phase 3, NOW: Fully live. We’ve switched off the whitelist, so anyone can now participate in providing liquidity for the trading pools. We’ve also started liquidity mining, which has triggered the second part of our rewards programme.
You can provide liquidity to our trading pools and receive APY interest yields as well as DVF tokens as reward for doing so.
What we’ve built: a unique hybrid of Layer 1 and Layer 2
Ethereum is built on two separate layers: layer 1, the core blockchain, and layer 2, a transactional network that sits on top.
Most AMM platforms are built purely on layer 1, but ours will be split across both layers. Layer 1 will be used to create the AMM tokens while layer 2 will provide the management of daily trading activity.
We feel this offers a great balance to traders, combining the key advantages of both tiers.
Layer 1: Security
If DeversiFi layer 2 were ever to go offline, users could simply redeem their LP tokens on the main Ethereum blockchain.
Layer 2: Ease and cost-effectiveness
Layer 2 requires far less computational power than layer 1, and doesn’t require you to make an Ethereum transaction every time you trade, so we can keep fees to a minimum.
But perhaps the biggest benefit of all is the flexibility. Our new model enables us to combine traditional order-book trading with AMMs: in other words, we can plug order-book markets into our new pools, so users can get the best price possible, whichever route it comes from.
If the price determined via individual order-book sellers is lower than that provided by the AMM algorithm, our routing network will connect you with that price instantly. This combination of old and new-school trading is unprecedented in the AMM world.
This is true DeFi: a world that is accessible for everyone and delivers the best possible environment for each individual member of the community. Happy trading!
