👩🏫Introduction
What is the $FYN Liquidity Program?
The $FYN Liquidity Program is an initiative designed to improve the liquidity of $FYN. It consists of the following core actions:
To increase $FYN accessibility by creating a Liquidity Pool¹ on the widely recognized Uniswap decentralized exchange
To improve $FYN liquidity by encouraging community members to provide $FYN liquidity on Uniswap
What problems do a lack of liquidity cause?
New users entering the Affyn ecosystem may encounter difficulty acquiring $FYN due to a lack of trading depth. This can lead to frustration and impede user onboarding, ultimately slowing down ecosystem growth.
Low liquidity makes it challenging to accurately determine the fair market value of $FYN. This creates uncertainty for potential investors and users, further hindering adoption and ecosystem expansion.
Low liquidity restricts the potential for users to fully utilize the diverse functionalities of $FYN within the Affyn ecosystem, stifling overall user engagement and satisfaction.
Persistently low liquidity can send negative signals to the wider cryptocurrency market, raising concerns about the stability and long-term viability of the Affyn ecosystem. This can harm investor confidence and deter potential partners, further limiting growth opportunities.
Why Should I Provide $FYN Liquidity?
Liquidity providers earn a share of the fees generated from trades that occur in the liquidity pool. Uniswap charges a fee for each trade, and this fee is distributed among liquidity providers based on their share of the pool.
Liquidity providers may experience additional capital gains on top of the trading fees earned.
To kickstart the program, we offered exclusive rewards to users contributing liquidity to the official Uniswap V3 Liquidity Pool during the campaign period.
Note: The Liquidity Provision Bonus campaign has ended.
¹ A liquidity pool is a group of tokens that are locked in a smart contract and used for trading between assets on a decentralized exchange
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