Switcheo will extend LP rewards and modify reward weightings upon the recent unanimous approval of TIP #10. Notable changes include extending LP rewards to 30% of block rewards for six months and a new boost reward system.

Switcheo TradeHub launched in Dec. 2020, initially enabling trading in three markets and growing from there. To incentivize liquidity, Switcheo instituted a reward curve offering higher rewards to liquidity providers for the first 12 weeks of trading. Switcheo said:

The intent was to incentivize liquidity contribution with robust yields in the initial bootstrapping period for Demex’s novel AMM-simulated order book exchange model. Liquidity rewards are being extended chiefly to incentivize liquidity for new markets that are being added on Demex. This would ensure that the order books for newly-added markets are sufficiently liquid to support trading on the platform.

The following liquidity pools on Demex have been rebalanced and adjusted by weight:

  • SWTH-20-ETH-80 (4x rewards)
  • SWTH-20-USDC-80 (4x rewards)
  • ETH-50-WBTC-50 (1x rewards)
  • ETH-50-USDC-50 (2x rewards)
  • WBTC-50-USDC-50 (2x rewards)
  • CEL-50-USDC-50 (0x rewards)
  • NEX-50-USDC-50 (0x rewards)
  • nNEO-50-USDC-50 (0x rewards)

In Jan. 2021, Switcheo noted that TradeHub transactions had greatly exceeded those of their legacy smart contracts and announced its intent to sunset the Switcheo Exchange. Therefore, reward changes will also support markets affected by this pending decommissioning. The following markets were included in TIP #10:

  • nNEO-50-ETH-50 (1x rewards)
  • nNEO-50-nGAS-50 (1x rewards)
  • nNEX-50-nNEO-50 (1x rewards)

Lastly, Switcheo intends to integrate support for Binance Smart Chain via Poly Network in preparation for a future TradeHub upgrade. In an upcoming release of Switcheo TradeHub v1.15.0, BEP-20 liquidity providers will receive rewards accordingly:

  • nNEO-50-BUSD-50 (1x rewards)
  • CEL-50-BUSD-50 (1x rewards)
  • SWTH-50-BUSD-50 (2x rewards)
  • WBTC-50-BTCB-50 (1x rewards)
  • BUSD-50-USDC-50 (1x rewards)

Under the new reward boost system, tokens can only be committed to liquidity pools for a maximum lockup period of one month and will offer 2x rewards.

Looking forward, Switcheo intends to propose upgrading to TradeHub v1.15 and release a sunset/migration plan for the Switcheo Exchange.

The full announcement can be found at the link below:
https://medium.com/switcheo/extension-of-liquidity-rewards-on-demex-18b9c9f43a1b

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