Loopring Exchange Liquidity Mining Competition

Loopring Exchange will hold a one-month liquidity provision (market making) competition, supporting two trading pairs: LRC-USDT and ETH-USDT; there will be a reward pool of 6000 USDT, split between both trading pairs.

Time period:

One month. 12:00 PM on June 15 to 12:00 PM on July 14 (Beijing time)

Rules:

We refer to Hummingbot’s liquidity mining concept and reward schema, where any trader who adds liquidity to our orderbook exchange (places resting orders on the book) is competing for a pre-specified pool of funds. We measure traders’ liquidity contribution through the following three indicators, and issue rewards in proportion:

1. Spread: Market price = (bid price + ask price) / 2; Spread = ABS (order price-market price) / market price. We implement a spread density function to closely tie spreads to rewards. The reward decreases exponentially as the spread increases.

https://hummingbot.io/blog/2019-12-liquidity-mining-rewards/

2. Order size: Rewarding market makers for order book depth. Market maker compensation is set in direct proportion to the market maker’s order size, scaled by the spread factor.

3. Order balancing: We encourage orders to reach an equilibrium state. If the number of buy orders is much larger than the number of sell order, to reach an equilibrium, we will give the traders of the sell order higher rewards.

Further details

We will give a mining reward of 3,000 USDT for each trading pair: LRC-USDT and ETH-USDT.

The rewards will be evenly distributed across each hour of the month long period.

A maximum spread of 1% will be set. When there is any change in the order book within the range of 1% across one hour, we will calculate the contribution value of each order within the range of 1% at this time.

Participants can check the rewards and rankings on Loopring Exchange in real time. The accumulated rewards will be distributed after the event is completed on July 14. Rewards will be payable if more than 5 USDT has accrued.

https://loopring.io/account/liquidity-mining

So please get on Ethereum’s zkRollup Exchange, and see how you can trade on a scalable, high-performance orderbook DEX. As mentioned in the API release, Loopring.io can support programmatic traders and strategies of all sorts, including HFT. Further, you trade with the lowest fees around: 0% maker, and 0.06%-0.1% taker. And of course, as a zkRollup, no gas fees needed to trade or place orders. Loopring Exchange API: https://docs.loopring.io/en/

You have ~one week until the ‘genesis order’ will be mined. Connect to the API today to be prepared. If you have any questions, join our Discord.

To be clear, this is not a campaign in coordination with Hummingbot. We do not currently have a connector to Hummingbot for Loopring Exchange, although we suspect one may become available in the course of this competition. Anyone is free to trade on Loopring.io and compete for these liquidity rewards. Traders through or API, as well as ‘normal’ traders on the UI. Anyone who leaves an order on the book.

Loopring is a protocol for scalable, secure exchanges and payments on Ethereum using zkRollup. You can sign up for our Monthly Update, learn more at Loopring.org, or check out an exchange at Loopring.io.

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