Launching the Unido Liquidity Mining Program
We are pleased to announce that after weeks of preparation, development and audits, the Unido Liquidity Mining Program (ULM) will be going live on Thursday, 1st April!
The Unido Liquidity Mining program will provide a custom interface where UDO token holders will be able to provide liquidity through UniSwap, either into the UDO/ETH or UDO/USDC pools, in return for an LP token that, when staked, will provide additional UDO token rewards, claimable via the portal’s user interface.
UDO token holders will be able to safely and seamlessly connect their MetaMask wallet to ULM via the simple-to-use user interface and deploy their capital and earn rewards via the Uniswap liquidity pools.
Program Overview
- Pairings: We will initially launch two liquidity mining pools on Uniswap: UDO/ETH and UDO/ USDC pairings.
- Rewards: A total of 100,000 UDO per week will be released to both pools over the coming month to reward participating liquidity providers.
- Release Schedule: The release schedule for the following month will be released in the final week of every month for the duration of the Unido Liquidity Mining Program
- Program Length: The liquidity mining program will run for 4–6 months, depending on the growth of the Unido ecosystem and macro cryptocurrency market sentiment.
- Rewards will gradually decrease every month
What sort of incentives will Unido provide?
The Unido Foundation will incentivize liquidity miners with UDO token rewards claimable via the ULM User Interface. We have aimed to provide competitive Annual Percentage Yield (APY) for liquidity providers based on extensive market research and created a dynamic token economic model that was designed to adjust reward rates based on underlying market conditions.
The reward, that the individual LP is entitled to, will be determined by two variables:
- Share of the total liquidity pool the miner provides (separate for UDO/USDC and UDO/ETH pools). The greater the liquidity provided, the greater the proportion of total rewards the LP is apportioned.
- The duration for which the LP participates.
This means that the longer the liquidity provider mines for, and the greater their share of the liquidity pool is, the greater share of the reward pool they will be entitled to. This model incentivizes early adopters as they will be able to mine liquidity for longer and with lower competition.
The liquidity mining program will run for 4–6 months, depending on the development of the Unido ecosystem and the prevailing macro cryptomarket conditions. Basic Liquidity Mining period is one month (defined as a 30 day period, not a calendar month). The rewards for the following month will be announced in the last week of the previous month (i.e. rewards for May will be announced in the last week of April).
Rewards for the first Liquidity Mining period are set by the Unido Foundation and are listed below, all subsequent reward allocations will be calculated dynamically based on our market model.
First Liquidity Mining Period Rewards:
For the first 30 day mining period, Unido foundation will provide 240,000 UDO in rewards to the UDO/ETH pool and 160,000 UDO for the UDO/USDC pools.
Estimated APY for the first Liquidity Mining period:
Disclaimer: Please keep in mind any APY is subject to change based on the number of people providing liquidity and staking LP tokens, as well as the volatility of the UDO token. All numbers specified below are just estimates based on the size of liquidity pools at the time of writing and will likely change. Provided estimates are without any guarantee and are non-binding, they are listed solely for information purposes
Based on the size of current liquidity pools and UDO token price, we project the APY for the first month of liquidity mining to be as follows:
- Uniswap UDO-USDC 160% APY
- Uniswap UDO-ETH 200% APY
How safe is the ULM Program?
The ULM has been extensively tested and fully audited by the leading blockchain security audit provider, Omniscia, to ensure the highest standards of security were met. The safety of our community is paramount to Unido which prides itself on enterprise-grade security and compliance standards. That is we are making the full security audit from Omiscia publicly available for full transparency with our community — you can check it out here.
So What’s Next?
In the next few days we will be releasing an in-depth tutorial to walk you through the ULM User Interface and how to participate in liquidity mining.
To help you get prepared, there are two steps to take:
- Make sure you have MetaMask installed. Don’t have Metamask yet? You can follow this tutorial
- Ensure you have sufficient UDO and ETH/USDC to provide liquidity. Don’t have UDO? You have purchase UDO either on UniSwap, Gate.io or Bibox
About Unido
Unido is an enterprise platform for decentralized capital markets. It enables institutions & corporate clients to securely store, manage and invest their crypto assets into decentralised finance networks. Unido is underpinned by proprietary key signing technology that provides enterprise-grade security for any transaction which utilises it.
Founded in 2017 and with a market-ready product, Unido is led by an experienced team of ex-Goldman Sachs, ex-Macquarie and ex-Wipro with decades of experience in enterprise software development, financial services and agency blockchain development.