Dual mining pool- Double Rewards Tool for Projects
- Basic intro on dual mining
Dual mining is a novel model that brings both partnerships with other ecosystem projects and additional rewards to users. Users can harvest both KSwapFinance tokens (KST) and the tokens of another project in a dual mining pool.
- Why developing it?
KSwapFinance aims at opening a window of opportunities of which both partner projects and users can take advantage. This will probably be a win-win ending. A practical goal of a new project is to grow its user community as soon as possible, so the project will seek to list on a top-ranked decentralized exchange (DEX). By participating in the dual mining program, the project can utilize both its own tokens and KST to interest users to provide liquidity. Additionally, users will be presented with new financial tools. Another motivation for developing dual mining is to maintain a high level of transparency. Platform users can be fully aware of the annual percentage rate (APR) structure of a dual-mining pool and the utilization of pools’ transaction fees via the Treasury page.
How will users benefit from dual mining?
Progressively deploying the protocol of dual-mining pools is a milestone on KSwapFinance’s roadmap. The team is strengthening its efforts to boost KST’s price in addition to maintaining the synthesis of the platform with KUniverse, an NFT trading&staking system. Why will this claim be evidenced? All existing pools, including single-asset and liquidity ones, only reward KST. With the introduction of dual mining, the weighting of KST rewards allocated to newly added liquidity pools will decrease, thereby mitigating selling pressure. As more dual-mining pools join instead of traditional ones, the total value locked on KSwapFinance should secure a marked rise. From the perspective of a simple economic model, the reduction (or slow addition) of supply combined with heightened demand will contribute to a higher price in all likelihood. This scenario benefit existing KST holders.
Another direct beneficiary of this new feature is liquidity providers. They can earn two tokens (KST and partner tokens) simultaneously. The APR of a dual mining pool is a summation of two tokens’ expected annualized returns. Because a partner project will also contribute its tokens as a part of the rewards, the APR of dual mining pools will be predictably more gainful than traditional pools. Under this scenario, a higher APR means a higher return to liquidity users of a dual-mining pool.
How will projects benefit from dual mining?
Projects will gain greater exposure to OKExChain’s users, based on a couple of reasons.
One, KSwapFinance has a solid and active user base. It is ranked among one of the top three DEXes on OKEcChain, with the number of active users being more than 25,000. A new project participating in the dual-mining program will be in the limelight because it will be promoted by both KSwapFinance across social channels and more importantly, by an appealing APR thanks to the underlying mechanism of dual mining. Users will be incentivized to provide liquidity, therefore contributing to the more healthy liquidity of the project’s token. Users stake their LP in the pool, while there is ample time for them to learn the project, chat with other community members, interact with the project’s products, and finally cultivate trust in the project.
Two, by signing an agreement on the dual ming protocol, the new projects and KSwapFinance will form a long-term and steadfast partnership. Trust and confidence will be accumulated in the long run, bring enormous possibilities to both parties.
For users, how to get started with dual mining?
So a natural question is how to participate in dual mining, which may be asked by an ordinary user. Is there a cliffy learning curve? Will dual mining expose users to more substantial risks compared with other pools? Are those projects listed on dual mining pools legit? All questions are fair enough.
First, being a dual mining farmer is way more than simple. If you are familiar with liquidity mining, you are good to go. Just follow a simple five steps outlined on the official doc page and you are all set.
Second, a dual mining pool itself doesn’t introduce additional financial risks. If you understand impermanent loss and the volatile nature of cryptocurrencies’ price and set a reasonable stop loss level, no other worries should exist. If not, it is okay, and the following information is presented:
🌐The risks of trading cryptocurrencies
Third, KSwapFinance always attaches particularly high importance to the selection criteria of collaborations. It only chooses those projects built by well-established teams as long-term partners. The partnership request handling team behind KSwapFinance follows a strict protocol to scan all requests, no negotiations will be allowed if core requirements are not met. While the team may not disclose more information on the details, it will assure users that all potential collaborators will be scrutinized to ensure that all projects listed on dual mining pools are free of scams and rug pulls.
- KSwapFinance recap, its visions, and prospect.
For those of you who didn’t interact with KSwapFinance’s products before, KSwapFinance is a DEX relying on a mature automatic market maker algorithm for users to swap tokens freely. It is incorporated with another non-fungible token system and an upcoming IDO platform, providing users with a variety of tools, known as decentralized financing (DeFi). The vision of KSwapFinance is to become a well-performed and transparent DEX where DeFi users can trade cryptocurrencies, and at the same time, its mechanism will strive to minimizing risks in the DeFi world. To achieve these visions, the team is constantly testing and deploying innovative features, among which dual mining is just a start.
- Many thanks for all!
Once again, thank you very much for your continuous support since the formal launch of the platform on July 29, 2021. However, we all have experienced excitement and frustrations. For those staying with us from the start, please accept our sincerest gratitude. Yet, we know that words are pale, and thus the team wants to demonstrate its determination and resolution to build and deliver the best products to users. Please bear with us, and voice your opinions.
If you haven’t, please join our social channel and share your comments or expectations on dual mining.
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