Providing Liquidity
LIQUIFY offers an engaging and rewarding experience for users who participate in liquidity provisioning. By contributing liquidity to incentivized gauges, users not only receive a portion of the rewards allocated to those gauges, but they also play an essential role in stabilizing the platform's assets and improving the overall trading experience for other users.
In addition to the rewards distributed by veLIQUIFY to the gauges, liquidity providers indirectly benefit from swap fees generated by the platform. While they do not directly receive a share of the swap fees, 50% of these fees are allocated to veLIQUIFY users who have voted on the gauges. This system promotes fee generation and encourages users to vote on gauges with higher trading volume, creating a more dynamic and efficient ecosystem.
The remaining 50% of the swap fees are used for LIQUIFY token buybacks, which serve to support the token's value and the platform's sustainability. By providing liquidity, users contribute to the long-term success of the LIQUIFY ecosystem, fostering growth, stability, and a thriving community.
In summary, liquidity provisioning in LIQUIFY allows users to earn rewards, indirectly benefit from swap fees, and support the platform's growth and stability. This combination of incentives and benefits makes providing liquidity on LIQUIFY an attractive opportunity for users seeking to actively participate in the platform's success.
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