There is an opportunity to participate in mining profit without requiring capital, relying only on technology and creativity.
Written by: LeftOfCenter
The Risk Labs Foundation, the development team of the decentralized financial contract agreement UMA, announced the launch of a new liquidity mining program, which will award 50,000 UMA tokens to financial contract developers every week. This is not the first time UMA has been launched. Liquid mining plan, but it is an important mining reward plan, its importance is reflected in the total amount of mining reward token UMA is expected to reach 35% of the total supply, according to the current value of more than 250 million US dollars , in addition, The measurement standard of mining rewards is also quite novel. Rewards will be distributed according to the total value of the locked position on the chain TVL , because for UMA, the larger the TVL of the financial contract, the stronger the market demand, in order to encourage developers to create real Contract products required by users.
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UMA’s liquidity mining activities
As early as July of this year, UMA launched the first round of liquidity mining reward program . According to the reward program, miners who contribute liquidity to the balancer’s yUSD/USDC fund pool can receive UMA rewards, the native governance token provided by UMA, Risk The Labs team will distribute 25,000 UMA tokens to liquidity providers every week for 6 weeks. The team stated that this is an experimental pilot mining activity aimed at guiding the liquidity of the synthetic token yUSD created on top of UMA financial contracts and distributing UMA tokens to users participating in decentralized governance.
As of August this year, Risk Labs announced that this pilot mining activity has locked up collaterals of $ 52 million . This is a satisfying result that made the team realize that as long as sufficient incentives are provided, users are willing to spend time and energy to learn how to interact with complex smart contracts and provide liquidity.
Inspired by this, UMA once again launched the liquidity mining plan, and this time the plan is aimed at a more important ecological role-developers, and the proportion of rewards is also greater, so as to promote the birth of more UMA financial contract products .
Why are developers important?
UMA is called Universal Market Access, as its name suggests. It stands for “Universal Market Access”. As the financial infrastructure on the Ethereum blockchain, it is more like a general-purpose synthetic token platform, which theoretically allows Users create arbitrary synthetic assets.
But it is not so simple in actual operation. Every new synthetic token on UMA needs to deploy a smart contract, which requires the participation of developers with technical background and the promotion of partners. Each asset only needs to be deployed once. After that, ordinary users Just use the contract to mint tokens, or buy from a decentralized exchange.
Although compared to Synthetix, UMA is a more open, permissionless, and safer financial contract platform, but as a decentralized infrastructure platform, it requires the platform to actively attract developers to participate and provide more contracts for the community And use cases to guide the growth of the ecosystem.
To this end, Risk Labs launched this important developer mining reward event. Starting from November 10th , the Risk Labs Foundation will allocate 50,000 UMA tokens to developers who deploy contracts on the UMA platform every week. According to market reactions, the plan will be iterated and adjusted, and may eventually evolve into a multi-year plan. The total amount of grant rewards is expected to reach 35% of the total supply of UMA tokens (according to the current value of more than 250 million US dollars). Through the rewards of native tokens, developers are encouraged to be creative and create more contract products that meet market needs.
It is worth mentioning that this mining reward will be distributed based on the total market lock ( TVL: Total Value Locked ), that is, the weekly reward share of each developer will be based on the TVL locked in the developed synthetic asset contract Weighted, that is, the more popular the synthetic assets developed by developers, the greater the share of weekly rewards developers will receive.
Risk Labs frankly, although the total market lock-up volume in DeFi is not always the best way to evaluate the agreement, in the UMA case, this correlation is very clear, that is, it is appropriate for the market demand to be measured by TVL. In the economic model of UMA, the market value of UMA must exceed twice the value of the total lock-up volume in the financial contract in the UMA agreement to ensure the safety of collateral.
How to participate?
Risk Labs provides some examples of contract products, including:
- ETH gas fee synthetic product
- BTC Volatility Tracker (crypto VIX)
- San Francisco Real Estate Tracker
Developers who are interested in participating must first apply to be added to the whitelist .
In addition, the UMA team provides some key guidelines for developers, including a UMA contract deployment guide ( https://docs.umaproject.org/tutorials/mint-locally ) and a robot creation and financing guide .
Source link: medium.com
