HyperSwap Docs
  • 🔎| HyperSwap
  • 🔗| Official Links
  • ❓| How to Start ?
    • Create a Wallet
    • How to Bridge on HyperEVM ?
  • PROTOCOL CONCEPTS
    • 🌐| Overview
    • 🏊Liquidity Pool
      • AMM Standard Liquidity Position
      • Concentrated Liquidity Position
      • ⚡Single Asset ZAP
    • 📐| Constant Factor AMM
    • 💲| Dynamic Fees
    • ✉️| Partner Referral
  • Points
    • 💎| Point Program
  • Token Design
    • ⛏️| Liquidity Mining
    • 🔄| Conversion and Redemption
    • 🤝| Revenues Sharing Model
    • 💰| Protocol Earnings
    • 🔥| Deflationary mechanisms
  • TOKENS
    • 🪙| $SWAP
    • 🔓| $xSWAP
  • Contracts
    • 📜| Hyper EVM
      • V2
      • V3
      • 🧰Tools
    • 📜| Testnet
      • V2
      • V3
    • 🖨️| Integrations
      • ⏯️Templates & Use Cases
      • 🏃Quick Start
        • V2
          • Swap with V2
          • Add liquidity with V2
          • Functions
        • V3
          • Swap with V3
        • Single Asset ZAP
          • Provide Liquidity With V2
          • Provide Liquidity With V3
          • Functions
  • REFERENCES
    • | Audits
    • 📖| Glossary
    • 🎨| Media Kit
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  1. Token Design

| Liquidity Mining

Liquidity Mining on HyperSwap is a dynamic mechanism designed to incentivize users who provide liquidity to our decentralized exchange by contributing tokens to our liquidity pools.

By adding liquidity, users enhance trading efficiency and deepen our pools, which leads to better price stability and reduced slippage. In return, liquidity providers are rewarded with $xSWAP tokens, typically proportional to the amount of liquidity they provide and the length of time they participate.

These rewards motivate users to allocate their assets to the protocol, boosting overall liquidity and fostering a vibrant trading environment. Liquidity mining is crucial for bootstrapping liquidity, driving growth, and encouraging active participation within the HyperSwap community.

To ensure a fair and sustainable rewards system, our liquidity mining program features a maximum vesting period of six months. This encourages long-term commitment from participants while discouraging short-term speculative behavior, promoting a more stable and robust ecosystem.

Participants can exit the program early, but the remaining $xSWAP will be burned, ensuring a deflationary pressure on the token supply and further aligning the interests of long-term holders. This mechanism not only discourages premature exits but also contributes to the value appreciation of $SWAP over time

These mechanisms align incentives across the community, balancing immediate rewards with long-term sustainability and contributing to the overall health of the ecosystem.

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Last updated 2 months ago

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