TangleSwap, pioneering sustainable Airdrops and Liquidity Mining.
Deep dive into the Airdrop program and unique Liquidity Mining mechanism that enables a sustainable DeFi growth model.
In the early stages, the DeFi landscape was characterized by uncontrolled emissions and nascent market conditions, leading to a cycle of high promises and underwhelming delivery that resulted in uncountable losses. This has bred a sense of skepticism towards incentives, yet these are as vital to the evolution of Decentralized Applications (dApps) as debt is to conventional businesses.
Whether they’re fledgling platforms seeking to build a dedicated user base or mature protocols adjusting to evolving market dynamics, these incentives are needed to fuel growth and maintain a competitive edge. The effectiveness of incentives in DeFi hinges not just on their existence but on multiple factors, such as:
▶ Protocol’s capital efficiency and competitive advantages.
â–¶ Potential ROI generated by those incentives for the protocol and the users (e.g. utility, realistic price projections).
â–¶ Precision and fairness of the distribution mechanisms.
â–¶ Emission rates and dependency on these incentives for sustained competitiveness.
Areas where TangleSwap does notably well, propelled by the protocol’s state-of-the-art infrastructure, original innovations, and a distinctive tokenomic framework designed for sustainability and growth.
The Airdrops-Referral System: A Key Mechanism for Sustainable Growth
While most DEXs focus on incentivizing LPs, attracting and retaining traders is equally crucial. Now that liquidity provision is profitable without the need for extra incentives — thanks to the increased capital efficiency — TangleSwap is able to channel part of those incentives toward new user attraction and retention, sidestepping the classic DEX Liquidity-or-Trader dilemma.
TangleSwap’s Airdrops-Referral system is fueled by a total of 10,000,000 $VOID tokens — 10% of the total two years-supply — and designed to boost trading activity by incentivizing swapping on the DEX, which in turn attracts liquidity providers by increasing their most sought-after asset: Trading Volume.
Simple but effective: Trade & Earn
Total rewards are distributed on a seasonal basis, and the process is refreshingly simple: the greater the trading volume you and your referrals generate each season, the more rewards you stand to earn.
Curious about the volume you and your referrals have accumulated? It’s easy to find out. Just click on your connected wallet (located in the top right corner) and select ‘Account Overview’ to view all the details.
At season’s end, you’ll see your airdrop amount; click ‘Claim Your Airdrop!’ et voilá, receive your share of the airdrop directly in your wallet, rewarding you for using and referring the most efficient, user-friendly DEX within the ecosystem.
To enhance efficiency and maintain the integrity of our token distribution each season, the protocol retains the right to whitelist specific pools and set specific conditions that will be announced shortly after the Airdrop distribution. This measure is in place to deter cheating and ensure a fair allocation process.
Referrals
Referees are the unsung heroes of protocol growth, often overlooked yet pivotal in scaling user bases. They act as personal endorsements, carrying a weight of trust that cold marketing cannot emulate. A referral signifies satisfaction and loyalty — a user’s belief in the service is so strong they’re willing to stake their reputation on it.
This organic growth engine is vital, turning each user into a potential ambassador. TangleSwap acknowledges this by not just remembering but rewarding referees by adding 10% of the total volume generated by their referrals into the total ‘’volume weight’’ for each season airdrop, ensuring that those who help expand the community are recognized and compensated, catalyzing a virtuous cycle of growth.
▶ Looking to get started with TangleSwap’s referrals program?
- Click on your connected wallet (top right), then ‘Account Overview’.
- In the Affiliate Program section, copy ‘Your referral URL’. Now, you are all set to start sharing it. Any user connecting their wallet and performing their first swap through this link will automatically become a referral.
Unparalleled Capital Efficiency enabling proper incentive usage
In concentrated liquidity DEXs, like TangleSwap, capital efficiency reduces the need for vast liquidity pools, enabling frictionless trading and highly rewarding LPs with a fraction of the previously required liquidity. This shifts incentives from a survival necessity — as often happens in conventional AMMs, to a tool for growth.
Many protocols wastefully incentivize liquidity due to a lack of efficiency in the protocol’s core — requiring orders of times more liquidity to achieve similar liquidity depth and to temporarily boost their TVL metrics as a showcase of short-term growth at the expense of token holders and mid-long term performance. It’s like a business owner showing off the inventory stockpile that keeps growing in a costly and oversized warehouse due to its inability to sell it.
To grasp the impact of enhanced efficiency, compare a traditional AMM with TangleSwap’s CLMM, using pools with identical liquidity. One is spread infinitely, the other is moderately concentrated. The outcomes are self-explanatory.
- 50,000 SOC swap, price impact on AMM DEX 1.4% vs TangleSwap 1.1% (~ 30% less)
- 500,000 SOC swap, price impact on AMM DEX 4.9% vs TangleSwap 1.7% ( ~300% less)
- 1,000,000 SOC swap, price impact on AMM DEX 8.6% vs TangleSwap 2.3% (~400% less)
- 5,000,000 SOC swap, price impact on AMM DEX 30% vs TangleSwap 7.2% ( ~400% less)
- 10,000,000 SOC swap, price impact on AMM DEX 42% vs TangleSwap 13% (~350% less)
Liquidity Mining through Concentrated Farms: A Game-Changer
AMM-based Farms, saddled with the inefficiencies of their AMM DEX counterparts, require disproportionate reward distributions to match or sometimes fall short of comparable outcomes. This system essentially functions as a conduit, transferring Liquidity Provider’s losses to token holders, who weigh the inherent inefficiencies of both, DEX and Farm infrastructures.
On Concentrated Liquidity DEXs, incentives aren’t band-aids for inefficiency as providing liquidity is already profitable and requires less capital to enable frictionless trading. So why have incentives? With the right distribution mechanisms, they serve as incredibly effective and valuable tools to bootstrap growth, lure strategically relevant assets, and address unique market conditions, like high volatility.
Concentrated Farms Edge
By optimally concentrating farm rewards within designated price ranges, yield farming now fully leverages the advantages of Concentrated Liquidity. Furthermore, Concentrated Farms incentives are channeled where they cause the most impact — to the liquidity that the protocol really needs, requiring fewer tokens for the same result.
This flexibility and increased efficiency also let projects act as their own market makers, incentivizing market behaviour to suit their needs, although the standout feature of this refined approach is its capability to mitigate the impact of mercenary capital — a longstanding issue in today’s DeFi landscape.
These strengths will be further amplified with the upcoming rollout of Concentrated Smart Farms, seamlessly integrated with TangleSwap’s pioneering decentralized reputation system.
More than incentives, users earn a tangible stake in TangleSwap’s success.
Unlike conventional incentive programs in other DeFi protocols, our reward token isn’t just an incentive; it’s the protocol’s cornerstone, giving users a real stake in the success of the platform they enjoy. Being a user now carries new weight!
By earning $VOID users are now able to:
- Sit and watch how TangleSwap’s revenue-sharing program, Buyback-and-Burn Blasters (BBB) — a mechanism designed to allocate a significant portion of TangleSwap’s revenue for market-based $VOID token buybacks, and subsequent burning of these tokens — not only regulates supply but also continuously fortifies the inherent value of $VOID.
- Stake your $VOID tokens to amass what we term Void Energy, a multi-faceted ‘Decentralized Reputation’ metric that unlocks a plethora of platform functionalities. This includes not just governance participation and staking yields, but also extended utility features, amplifying your influence and benefits within the TangleSwap ecosystem.
- As outlined in our previous blog post, our $VOID token now functions akin to a hedged S&P-like index for the ecosystems where TangleSwap is deployed while additionally serving as an interoperability mechanism. Therefore, enabling holders to secure a hedge direct exposure to these vibrant networks through $VOID.
This means that users now enjoy dual incentives: firstly, from superior technology and a prime DeFi experience, characterized by better pricing and increased yields, and secondly, through earning rewards that grant them a voice in shaping the protocol’s future.
Curious about our Airdrop program, Concentrated Farms, or $VOID token? Dive into our official documentation and Whitepaper for detailed insights. Plus, don’t miss our upcoming announcements — stay tuned to our Twitter and Discord channels.
Onwards! 🛸
