Users adding liquidity to the BZRX-ETH orderbook (placing resting limit orders) will automatically be eligible to receive their share of $2k in vBZRX rewards. Rewards are payable according to spread tightness, order depth, and order balance. Liquidity providers will accrue these rewards hourly for 30 days, and can see a dashboard depicting all their earnings in real time. More details on Loopring Exchange liquidity mining can be found here.
Liquidity mining will begin on July 16 at 11:30 PM EST and last for 30 days.
About bZx and the BZRX token
BZRX is a highly anticipated new asset: the governance token of DeFi borrowing, lending, and margin protocol, bZx. BZRX gives holders a seat at the table, and a say in governing this open protocol via the bZxDAO.
While I say the ‘new’ BZRX token has launched, it’s important to note that bZx is not new to the DeFi game, and neither is its concept or construction of its token. To the contrary, bZx has had a community of strong supporters and BZRX holders for over two years now — these tokens were just locked in vesting a contract. Indeed, bZx built up its protocol first, until there was a bustling system to govern. That time has come, and with it, the BZRX token migration commenced two days ago. The BZRX token is thus able to trade on the open market, and as of today, on Ethereum’s high-performance, gas-free orderbook exchange.
Products that are built upon the bZx protocol include Fulcrum, a tokenized lending and margin trading platform, and Torque, a borrowing platform. Besides those products and the protocol itself, there is also a set of financial primitives that arise out of the bZx system: iTokens and pTokens. iTokens are tokens that constantly earn interest, and pTokens are tokens that represent leveraged or short (inverse) positions.
Get started liquidity mining
So, whether you are an existing market maker or trader-hobbyist on Loopring.io, a long-time BZRX supporter, or new to both, let your strategy loose on the orderbooks and be rewarded every hour for a month (in addition to the profits of your strategy). In so doing, you will be earning the token that gives you a right to govern this important DeFi protocol.
While any limit order is eligible for the liquidity mining rewards, you may want to trade programmatically for the most precise and automated strategy, so be sure to check out the Loopring Exchange API.
If you want to get up and running programmatically even quicker, check out our ready-built bots, with ready-built strategies: Hummingbot connector, or VNPY framework.
More info on liquidity mining mechanics & measurement can be found here. If you have any questions on Loopring liquidity mining, please join our Discord.
Note: BZRX is now also supported on Loopring Pay! Once your BZRX is on the Loopring Exchange, you can instantly and for free transfer your assets to any other user on the zkRollup. No gas required. Besides doing so on the exchange, you can also send BZRX transfers on the new Loopring Pay UI, which is mobile friendly.
On liquidity mining rewards in vBZRX
While BZRX-ETH is the trading pair, liquidity mining rewards will be paid out in vBZRX — a tokenized version of vesting BZRX. Specifically, vBZRX is BZRX that vests to your address over 4 years with a 6 month cliff. You can hold it as such, or, it can be freely transferrable/tradable, likely with a discount to BZRX reflecting the time value. So, in 30 days, liquidity miners will have accrued a USD value of liquidity mining rewards, and this will be paid out in equivalent vBZRX. The rewards will be paid out a rate of .0002 ETH per vBZRX (as of writing, BZRX is exchanging for .00082 ETH on Uniswap). So this may represent a substantial premium to $2k. It’s worth noting that vBZRX is the format that bZx is dropping to many Ethereum and DeFi powerhouses to widely distribute governance.
For more info on bZx, visit their website, Twitter, or Telegram, GitHub.