iZUMi team first proposed and implemented a liquidity mining scheme "LiquidBox", based on Uniswap V3 NFT LP tokens. Unlike the traditional V2 fungible LP tokens that are directly staked for mining, when designing the liquidity mining incentive plan in LiquidBox, the protocol can clearly set the value range of the incentivized LP tokens. You can learn more information click here.
Why should we choose LiquidBox for liquidity mining?
DeFi users provide liquidity on Uniswap to earn transaction fees and they will also get an NFT LP token that represents their Liquidity share. They can stake their NFT LP token on Izumi to start liquidity mining and earn extra incentive tokens provided by different project teams and Izumi governance tokens.
How to farm with LiquidBox?
As for now, we have three options: Fixed Range, One-side,Dynamic Range. Although, we have deployed on Ethereum, Polygon, and Arbitrum.You can learn more details in the Tutorial(click here).
How to ensure the safety of users' funds?
We use the "non-custodian" option. That being said, any liquidity injection in UniswapV3 is obvious. izumi serves as a custodial mining platform. Any money held by the users, including LP tokens staked on the izumi platform, is stated in the smart contract to be returned only to the user's wallet address under any conditions, with Izumi and the project party having no right to touch the user's liquidity. It can totally reduce security risks.
Where do the liquidity mining incentives come from?
Incentive tokens are provided by Izumi itself, as well as the cooperated protocols that want to give incentives to liquidity providers of their token trading pair in UniswapV3.
How to calculate LiquidBox farming rewards?
In iZUMi's LiquidBox, the algorithm converts each NFT into an FT to calculate the percentage of rewards that should be earned.