What is ACXT Liquidity Farming?
ACDX, the world’s first advanced crypto derivatives exchange offering innovative structured products, has announced a groundbreaking incentive program for market makers. The ACXT Liquidity Farming program is designed to benefit market makers by offering them the platform’s native ACXT tokens as rewards for every filled maker order.
The launch of ACXT Liquidity Farming program closely followed the platform’s successful token sale. It ensures that the platform is always plush with liquidity, which translates to highly accurate and stable crypto asset prices on par with the global markets.
How Does This Program Distinguish From the Industry’s Practice?
It is a standard practice in the crypto industry to encourage the participation of market makers – traders who add liquidity, or buying and selling limit orders in which the limit price is below/above the current market price, or by placing a trade in the order book.
In most cases, the benefits offered to those playing the crucial role is limited to discounted trading fees. However, ACDX aims to offer more tangible rewards to market makers in the form of ACXT tokens every time they fill a market order.
Mechanism of ACXT Liquidity Farming
To sustain the ACXT Liquidity Farming program, ACDX has allocated 30% of the total ACXT token supply, to be unlocked over a period of 4 years. Based on the current supply and unlock rate, an average of 10266.94 ACXT per day will be available for reward payable as soon as a market maker order is filled. The amount of ACXT rewards received is directly correlated to the maker volume.
Benefits of ACXT Liquidity Farming
By assuring adequate liquidity through ACXT Liquidity Farming program, ACDX ensures that all crypto assets supported by the platform maintain stable pricing, on par with that of the global crypto market. Meaning, the platform will consistently match the demand and supply of various supported crypto assets with the active participation of its investor and trading community to prevent the value of any asset from drastically changing over a short period of time due to a sudden unforeseen change in trading pattern.
The resulting increased reliability and accuracy of pricing, in turn, encourages traders to confidently devise trading strategies that suit their needs and execute them on the platform.
A Lot More in Store on ACDX
The TECH100 Index
Apart from the traditional crypto instruments, the ACDX platform has recently launched the first of its kind TECH100 Index in the crypto market. Comprising of the world’s top 100 non-financial technology companies, the TECH100 Index is a quarterly futures market with multi-token collateral including BTC, ETH, USDT, PAX, USDC, TUSD and BUSD.
Free Token Listing
ACDX is also supporting crypto projects by evaluating and listing their tokens on the platform. As a part of its effort to encourage the crypto industry, the exchange recently held a free token listing campaign for eligible projects. In the near future, ACDX aims to develop and launch new features and provide new ways for the deserving projects and their respective tokens to thrive.
For market makers, the gain through Liquidity Farming Program is more than what they would otherwise gain in similar incentive programs organized by other crypto exchanges. What is more, Liquidity Farming not only benefits market makers, but also the wider ACDX community and the platform. It is conducive to the long-term development of ACDX.