⛏️Liquidity Mining
Rewarding a strong token economy through LP provision
Last updated
Rewarding a strong token economy through LP provision
Last updated
Fullhouse pledges to uphold the lasting sustainability and liquidity of the FH token. In line with this commitment, 6% of the FH supply will be dedicated to a liquidity mining initiative. This program aims to notably boost the on-chain liquidity of the FH pool. Liquidity mining, a fundamental aspect of decentralized finance (DeFi), motivates users to provide liquidity to a token pool by offering additional tokens as rewards. Over a span of 3 years, participants in the FH liquidity mining program will earn FH tokens as incentives for their contributions to the liquidity pool.
What is Liquidity Mining?
Liquidity mining involves token holders contributing assets to a liquidity pool, enabling trading, lending, and borrowing on a platform. In exchange for providing liquidity, participants receive additional tokens from the platform. This fosters a self-sustaining ecosystem, ensuring ongoing liquidity for smoother transactions and improved platform stability.
How This Works
Those involved in the liquidity mining program deposit their tokens into a smart contract supporting a decentralized exchange or lending platform. These deposited tokens supply essential liquidity for other users to engage in trading or borrowing. Participants receive rewards in the form of additional FH tokens for locking up their tokens and contributing liquidity. Typically, rewards are distributed proportionally depending on the amount of liquidity contributed by each participant to the pool.
Benefits for the FH Token
Better Liquidity: By incentivising token holders to contribute to the liquidity pool, liquidity mining ensures that there is always enough liquidity for FH transactions. This reduces slippage and makes it easier for users to buy and sell FH without significantly affecting its price.
Scalable Adoption: The promise of earning rewards attracts more participants to the platform, increasing the adoption and circulation of the FH token. As more users engage in liquidity mining, the FH ecosystem grows stronger and more vibrant.
Price Stability: With more tokens locked in liquidity pools, the circulating supply of FH is effectively reduced, which can help mitigate price volatility. Furthermore, the constant demand for FH tokens to participate in liquidity mining can exert upward price pressure, benefiting token holders.
Community Growth: Liquidity mining fosters a sense of community and participation among FH 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 Fullhouse social channels.
