1inch, a decentralized or non-custodial crypto exchange aggregator service, has launched a new liquidity mining program.
Liquidity mining, also referred to as yield farming, is the act or process of offering liquidity through digital currencies to decentralized exchanges (DEXs). Since the main goal of an exchange is to offer high levels of liquidity, DEXs aim to reward users who are willing to provide capital to their platform.
As mentioned in a blog post by 1inch, their Liquidity Protocol will be updated to version 1.1, which aims to further improve the “governance procedure.”
1inch added:
“We are excited to announce a new liquidity mining program, which is coming alongside an upgrade of 1inch Liquidity Protocol to version 1.1.”
Five different pools will take part in the new liquidity mining program, which begins on January, 9, midnight (00:00 UTC):
- ETH-1INCH
- ETH-DAI
- ETH-USDC
- ETH-USDT
- ETH-WBTC
Under this new program, “another 1% of the 1INCH token total supply will be distributed among providers of liquidity to the above pools in equal shares,” the announcement confirmed. The program is scheduled to run for a 1-month time period.
1inch’s previous liquidity program is “successfully coming to an end, and, as of January, 7, its participants have collected as much as 7.5M 1INCH tokens, which corresponds to an average APY of 300%,” the announcement noted.
The 1inch team added that the distribution of “governance” rewards has been in progress for around two weeks, with approximately 632,000 1INCH tokens “paid out to date.”
The 1inch team further noted that the liquidity mining program is being introduced along with an update of the 1inch Liquidity Protocol to version 1.1. The developers also mentioned that “at some point, we noticed a minor irregularity in the older version of 1inch Liquidity Protocol, which might have an impact on vote counting in (distributed autonomous organization) DAO governance.” In version 1.1, this issue has been addressed in order to ensure that “all governance votes are counted correctly.”
1inch confirmed:
“As the new protocol version will have new liquidity pools and liquidity mining contracts, to participate in the program, users will have to withdraw their assets from the previous incentive programs and migrate them to 1inch Liquidity Protocol version 1.1.”
To help users with this process, 1inch is providing migrators — which are somewhat like gateways enabling users to migrate their digital assets to the protocol’s latest version using swap transfers. Migrators from Mooniswap, Uniswap and SushiSwap will be offered to users who intend to migrate to 1inch Liquidity Protocol from various other protocols.
In December 2020, 1inch had introduced its governance token.
As noted by 1inch:
“The independent board of the 1inch Foundation has released 1INCH, a governance and utility token. The 1inch Foundation intends to support the adoption of the 1INCH token via the permissionless and decentralized 1inch Network.”
As reported in early December 2020, 1inch will be supporting the Gitcoin Grants Round 8 Hackathon. The 1inch team notes that they’re looking forward to assisting developers who are working on innovative DeFi projects that are based on 1inch technologies.
In November 2020, 1inch released a new version of its software that provides the “best rates” on DeFi token swaps.